What do Drake, Snoop Dogg and Seth Rogen all have in common besides the obvious? Yes, they're all celebrities, entertainers, and are all known to be connoisseurs of the cannabis plant aka "weed." FYI they've all partnered with one of the largest cannabis companies in the world based out of Canada, Canopy Growth Corporation https://www.canopygrowth.com with Drake being the most recent investor/partner. And if you didn't all ready know, multi-millionaire Martha Stewart also partnered with Canopy Growth in a deal Snoop Dogg helped broker.
Here's an excerpt from the Press Release today 11-7-19:
Canopy Growth Corporation (“Canopy Growth” or the “Company”) (Toronto Stock ExchangeTSX:WEED, New York Stock ExchangeNYSE:CGC) and Aubrey Drake Graham (“Drake”) are pleased to announce that they have entered into agreements to launch the More Life Growth CompanyTM, a fully licensed producer of cannabis based in Drake’s hometown of Toronto, Canada. “When we first began talks with Drake we were extremely inspired by and aligned with his vision to bring best-in-class cannabis products to the world,” said Mark Zekulin, CEO, Canopy Growth Corporation. “Drake’s perspective as a culture leader and entrepreneur combined with Canopy Growth’s breadth of cannabis knowledge will allow our new company to bring an unmatched cannabis experience to global markets.” Drake’s eclectic career includes experience across a wide variety of industries including music, television, film, fashion, sports, brand development, content curation and social and digital media strategy. Having launched numerous successful brands over the past decade, he is uniquely positioned to bring his innovative eye to the recreational cannabis industry. “The opportunity to partner with a world-class company like Canopy Growth on a global scale is really exciting,” shared More Life Growth Company founder, Drake. “The idea of being able to build something special in an industry that is ever growing has been inspiring. More Life and More Blessing.”
I've had an interest in investing in the cannabis market for some time, just wasn't sure where to start. Why? The global cannabis market is one of the fastest growing markets which some financial analysts project to grow as high as $150 billion within the next 10-15 years. Uruguay and Canada have legalized cannabis in their countries with Mexico due to legalize it soon. Here in the US, 33 states have legalized medical cannabis and 11 states, including California, legalized its recreational use. In addition, the "2018 Farm Bill, which includes language that legalizes hemp across the US, was signed in to law" in late December 2018. Along with all of the celebrity investors I mentioned, billionaires James Simmons https://en.wikipedia.org/wiki/Jim_Simons_(mathematician) and Kenneth Griffin https://en.wikipedia.org/wiki/Kenneth_C._Griffin have also invested heavily in cannabis stocks. They all see the writing on the wall! And just like what happened with alcohol prohibition, cannabis will eventually become legal nationwide. When that happens, the cannabis industry here and globally will explode!
So why Canopy Growth? Check out their success story https://www.canopygrowth.com/about/ here. Also, Constellation Brands, a Fortune 500 company who produce the beers Corona and Modelo, invested $4 billion "to build scale in the more than 30 countries currently pursuing federally permissible medical cannabis programs, while establishing the foundation needed to supply new recreational adult-use markets as cannabis becomes legal in markets around the world." It's for all the reasons above that I decided to buy shares in Canopy Growth (CGC on the NYSE) last month at around $20/share. The price per share was as high as $50/share but lately has been back and forth between $19-21/share. That could change as Canopy Growth is set to announce their projected earnings for 2nd quarter 2020 on November 14, 2019. I also placed a small wager, or "call-option" in stock jargon, that Canopy Growth stock price will rise when they make their announcement. Hoping for the best!
If you're interested in investing in cannabis stocks, or stocks in general, I recommend opening a Robinhood account https://robinhood.com It's as easy as opening a checking account, it's free to trade and you don't have to deposit any money in the account to start as with other brokerage accounts. Good luck!
No comments:
Post a Comment