Canopy Growth Corp (NYSE: CGC) is having an incredibly strong day in the market today. However, like many others, no news has been released. So, what’s the deal? Why is the stock climbing and is it worth getting involved? Today, we’ll talk about:
- Why CGC is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why CGC Is Headed Up
As mentioned above, Canopy Growth is having a great day in the market today, but hasn’t released any news. So, what’s going on? Well, it has to do with news that was announced in late December, and continued investor excitement surrounding this potential opportunity.
The news that was released was that the United States had passed the Farm Bill. This Bill legalized hemp and CBD in the United States, and proves to be a big win for CGC. As the laws surrounding cannabis change around the world, the company has laid the groundwork in order to capitalize, and in the United States, that’s no different.
In fact, Canopy Growth recently announced the acquisition of ebbu Inc., a hemp-specific portfolio of intellectual property acquired in Colorado. As a result, the company has products that fit legal requirements and a geographical footprint in the United States. Not to mention that with the recent investment of $4 billion from Constellation Brands, the company has the capital to turn legislative change into profit here. In fact, Bruce Linton, Chairman and CEO at CGC pointed to both of these facts in the statement below:
Canopy Growth commends the United States government for passing the Farm Bill, a transformative piece of legislation that will create jobs and meaningful economic impact across the United States.
Thanks to a deep hemp-specific portfolio of intellectual property acquired from Colorado-based ebbu Inc. and a landmark investment of USD $4 billion from Constellation Brands, management believes it is well-positioned to enter the US market quickly.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Canopy Growth, and others in the cannabis sector that have laid groundwork in the United States, recent news has been overwhelmingly positive. So, it’s not surprising to see that excited investors are pushing the stock and others like it toward the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (1:07), CGC is trading at $28.85 per share after a gain of $1.98 per share or 7.37% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on CGC. In particular, we’re interested in following the story surrounding the company’s continued work to expand around the world as we continue to see legal changes allowing for the use of cannabis and its derivatives. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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