Canopy Growth Corp (NYSE: CGC) is having yet another incredibly strong start to the trading session this morning as investor excitement surrounding the Canadian cannabis industry continues to grow. Today, we’ll talk about:
- What’s leading to gains in CGC;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why CGC Is Up
As mentioned above, Canopy Growth has had a pretty strong run in the market as of late. The reason is relatively simple. In October of this year, Cannabis will become legal on a national level for recreational use by adults in Canada. As a result, the industry is preparing for its debut and stocks like CGC are soaring as agreements are announced.
For CGC, the recent news has been overwhelmingly positive. In fact, the company recentl announced that its products had been selected as approved cannabis products for sale in Ontario. The company’s products were selected by the Ontario Cannabis Store, meaning that its brand of flower, pre-rolls, and other cannabis related products will soon be available.
Moreover, investors are expecting that this will not be the only agreement coming down the line. After all, Ontario is only one part of Canada, and CGC products may be selected for sale in other stores and other regions. Considering the fact that the cannabis industry in Canada is in its infancy, there’s tons of room for growth, and for Canopy Growth, that means there’s plenty of opportunity.
What We’re Seeing From The Stock
As investors one of the first lessons that we learn is that the news moves the market. In the case of Canopy Growth, the news as of late has been overwhelmingly positive. With a commercial launch of recreational cannabis products in Canada coming down the line, there are tons of opportunities for the company to take a slice of the market. So, it comes as no surprise that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:17), CGC is trading at $48.10 per share after a gain of $3.10 per share or 6.89% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CGC. In particular, we’re interested in following the story surrounding the company’s activities in Canada and excited to learn of any new coming contracts and revenue generated through the sale of its recreational products in the region starting in October. Nonetheless, we’ll continue to follow the stor closely and bring the news to you as it breaks!
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