Canopy Growth Corp (NYSE:CGC) (TSX:WEED) is reminding us today why it will be king of CBD in 2019. CGC stock is currently climbing, potentially off the back of America’s passing of the Farm Bill. Investors are smart, see, and this company has itself in a position to soar further on its CBD prospects alone.
CGC Stock and CBD
Thanks to its immense growth, Canopy Growth has become a household name. With a market cap close to $10 billion it is also Canada’s biggest cannabis company. But even the most bullish of CGC investors became worried as the company dealt with sharp losses after strong October highs.
CGC stock is still only half of what it reached during those highs, however, selling for $38.61 CAD, CGC stock is swapping hands at a fast pace this week. This stock is clearly on investors’ minds and why wouldn’t it be.
One limitation for the brand was US federal law. However, with the latest farm bill, CGC is ranking among the best stocks for forward-looking buyers as it seeks to now “participate in the American market.”
Canopy Growth has been ready for the CBD market since 2016 when it “began adding strategic hemp assets to its portfolio.” Aware of the massive potential for hemp and CBD products, it then began investing in field-scale operations in 2017. Soon the company had created a vertically integrated hemp business that mirrors its current cannabis business, all the more to benefit CGC stock.
As Canopy CEO Bruce Linton puts it:
“With the door now open, we are moving fast to bring our considerable resources to establish the same market leadership position internationally that we have earned in the Canadian cannabis market. Canopy has a strong supply of CBD, a significant channel presence, the IP to drive the CBD industry forward to the benefit of consumers, and the balance sheet needed to act now.”
If Canopy has had the ability to make itself the biggest cannabis company in Canada, then it comes armed with the expertise, ready to do it all over again for the CBD industry in the US.
Do you think CGC stock will grow?
Featured Image: Canva