Canopy Growth Corporation (NYSE: CGC) is having an incredibly strong start to the trading session in the pre-market hours this morning. While the company hasn’t released any news, there’s a good reason for the gains. With the Canadian retail cannabis market opening in just under a month, investors seem to be excited about the potential growth the company will see ahead. Today, we’ll talk about:
- Why CGC is up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why CGC Is Climbing
As mentioned above, Canopy Growth Corporation is climbing in the market this morning. However, the company has released no news. So, what’s the deal? Well, it all has to do with investor excitement.
On October 17, 2018, Canada will be the second country in the world to offer legal cannabis to its consumers. Since the announcement was made earlier this year, cannabis growers, like CGC have been working to take their slice of the pie by signing various supply agreements that will put its products in front of consumers.
So far, there are only five companies that have signed a large amount of supply agreements, and CGC is one of them. Moreover, there are three companies that appear to be the leaders in the space, including Canopy Growth, Tilray (TLRY) and Cronos (CRON). It is largely believed that the lion’s share of the Canadian cannabis market will be split between these three in less than a month when the recreational market opens. As a result, investors are excited, waiting to see a strong ramp up in revenue.
What We’re Seeing From The Stock
As investor excitement continues, Canopy Growth, along with its rivals in the Canadian cannabis sector continue to climb. As is normally the case, our partners at Trade Ideas were the first to alert us to today’s gains. Currently (8:12), CGC is trading at $54.94 per share after a gain of $3.05 per share or 5.88% 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 opening of the Canadian cannabis market and excited to see the revenue growth the company generates as this influx of new business becomes available. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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