What perspectives do Canopy Growth shares have?
Canopy Growth Corporation is one of the largest Canadian producers of cannabis, having initially specialized as a producer of cannabis for medical use. Originally known as Tweed Marijuana Inc., it changed its name to Canopy Growth Corporation in September 2015.
It controls more than one third of the Canadian cannabis market and has seven cannabis production facilities in nine different countries around the world.
Cannabis was legalized for medical purposes in Canada as early as 2001 and, in June of 2018, the country's parliament passed a law permitting its use for personal consumption. As of mid-October, Cannabis has been freely available for purchase in Canada.
Canopy Growth Corporation's shares — which are currently traded under the ticker symbol CGC on a number of stock exchanges including the NYSE — received a huge boost following the introduction of this law. After October's sharp rise when share price almost hit $57, the shares dropped to the level $33.5.
Canopy Growth Corporation's shares were also strengthened by a $5 billion investment deal with American spirits producer Constellation Brands Inc., which also owns beer brand Corona, seeing the US-based outfit increase its stake in Canopy Growth to 38%.
Nevertheless, we are unlikely to see a repeat of this explosive growth in the near future despite the company's reasonably stable position, healthy market share and decent outlook.