|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||3.1700 - 3.5300|
|52 Week Range||1.7500 - 7.3016|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||12.50|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Canopy Growth (NYSE:CGC) moved higher after announcing a deal with its investment arm, Canopy Rivers (OTCMKTS:CNPOF). This offers some relief to CGC stock, which had returned to levels not seen since before they announced their buyout intentions on Acreage Holdings (OTCMKTS:ACRGF).Source: Shutterstock Unfortunately, Canopy Growth stock seems to need more. CGC has again sold off after briefly crossing the $50 per share mark in late April. While the deals with Canopy Rivers and Acreage boost the long-term prospects of Canopy Growth Corporation, they also show the difficulty of breaking CGC stock out of its current trading range. Canopy Growth Continues to Improve Market PositioningCanopy Rivers announced that the portfolio company it owns, PharmHouse Inc., will commit more of its production to Canopy Growth. CGC will now buy an additional 20% of PharmHouse's output for the next three years. PharmHouse had previously committed 10% of its flowering space to Canopy Growth.InvestorPlace - Stock Market News, Stock Advice & Trading TipsStill, despite what the PharmHouse deal means to Canopy Growth, much of the focus has settled on mergers and acquisitions (M&A). The latest M&A deal for Canopy involves a buyout of New York-based Acreage Holdings. However, in reality, one could better describe this "agreement" as an option. The deal will not close until recreational weed becomes legal across the U.S. * 7 Stocks to Buy that Lost 10% Last Week I agree with my InvestorPlace colleague Tom Taulli that the alliance with Constellation Brands (NYSE:STZ) alliance holds Canopy Growth in good stead. I also believe the company has positioned itself for a leadership position in the U.S. in both hemp and cannabidiol (CBD). This benefits the firm without regard to what happens with the Acreage deal. I also see Canopy Growth remaining the market leader in North America when U.S.-based companies can operate with full legal status. Investors Should Separate Canopy Growth, CGC stockStill, what helps Canopy Growth may or may not boost Canopy Growth stock. The current hype regarding marijuana stocks renders the price-to-sales (P/S) ratio of around 135X meaningless. However, it also leaves investors without a valuation-based metric with which to evaluate CGC stock.Hence, this leaves investors with the charts as a guide. For all of the hype, Canopy Growth stock has twice pulled back after spiking above $55 per share in intraday trading. In recent weeks, even the Acreage deal could not keep CGC stock above $50 per share. Moreover, since Jan. 15, it has rarely moved below $40 per share or above $50 per share. CGC Stock Has Become Range-BoundDespite its elevated multiple, I do not think it will break through the lower end of the range unless a recession occurs, or the U.S. suddenly makes cannabis legal.For now, traders have focused on when and how CGC stock will break through on the high end of the range. The elevated P/S ratio will struggle to go even higher without further stimulus. However, seeing the rally fizzle after the stock moved past $50 per share could make one wonder whether stimulus truly helps. Moreover, seeing marijuana stocks (including CGC) tank after weed became officially legal in Canada remains fresh on investor's minds. It also shows the strange and powerful phenomenon of illegality driving cannabis equities.Like most, I believe CGC stock will trade at higher levels years from now. However, until we see the stock stay above $55 per share, I do not think that the higher stock price will come in the near term. Final Thoughts on CGC StockCGC stock trades near the high end of its range, and I expect CGC will stay in the range. The PharmHouse deal serves as yet another confirmation that the growth story remains intact for Canopy Growth. However, it will likely not have a material effect on Canopy Growth stock. * 10 Stocks to Sell Before They Tank Your Portfolio Moreover, before the company announced this deal, CGC had fallen back to levels it saw before they announced the Acreage Holdings deal. Simply put, CGC stock has become range-bound.The prospects of the cannabis industry should keep Canopy Growth stock at an elevated multiple in the near term. However, even a major coup such as the Acreage deal has failed to put CGC stock back on a growth trajectory.The Acreage and the PharmHouse deals show that Canopy Growth has both the strategic vision and the product needed to lead the marijuana industry. Unfortunately, translating this insight into near-term growth for Canopy Growth stock will prove more elusive.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post Why Canopy Growth's Deals May Not Translate Into Gains for CGC Stock appeared first on InvestorPlace.
Unicorn cannabis investment company Canopy Rivers Inc (OTC: CNPOF )(CVE:RIV) has invested $1.5 million in Biolumic, creators of a sustainable UV crop yield enhancement system. This is Canopy River’s first ...
Matt Hawkins, managing principal of Cresco Capital, said he would be "scared to death" if tasked with picking compelling investments among public companies. Instead, he said young and private companies looking for Series A financing are the most attractive.
The Benzinga Events team is busy planning for the third Cannabis Capital Conference back in one of our favorite spots and the heart of the cannabis industry—Toronto. The cannabis industry is constantly developing, from market expansions and stock volatility to recent regulations and everything in-between.
Benzinga is all geared up to host its third rendition of the Cannabis Capital Conference , full of big-time investors, top industry executives and reporters from around the world. If you haven’t already ...
The new venture will leverage and exclusively license LeafLink’s U.S.-based software as as a service business-to-business marketplace and supply chain technology to legal international cannabis markets. Per the terms of the agreement, LeafLink and Canopy Rivers will respectively hold roughly 82 percent and 18 percent of the new venture.
There’s no doubt that Canopy Growth (NYSE:CGC), stock is one of the best bets among Canadian cannabis companies, thanks in large part to the substantial financial support that the company is getting from Constellation Brands (NYSE:STZ). In July, I suggested that interested investors hedge their bets on Canopy Growth stock by buying equivalent amounts of CGC stock and Constellation stock. “If you feel strongly about the marijuana industry’s future growth, the smart move would be to take the amount you are prepared to lose on Canopy Growth and cut it (in) half, putting 50% into CGC stock and the other 50% into Constellation Brands,” I wrote on Jul. 5.