Canopy Growth Corp (WEED)

[Dbrown13]

“Until the big run-up in Tilray's share price, Canopy Growth held the moniker of marijuana's largest company by market capitalization. Tilray has surpassed it, but its $11 billion plus valuation still ranks it as the industry's second-largest business.

Like Aurora, Canopy Growth has invested considerably to increase production capacity, and currently, it estimates it can produce more than 500,000 kilograms of marijuana per year.

That should give Canopy Growth plenty of cannabis to meet demand once Canada's recreational market opens for business next year. According to Deloitte, sales of marijuana to adults in Canada could eclipse $1.8 billion in 2019. Coupled with medical marijuana sales, Canada's marijuana market could be valued at $11 billion in 15 years, according to Constellation Brands (NYSE:STZ), a beer, wine, and spirits Goliath that owns 38% of Canopy Growth.

Canopy Growth currently has about 30% market share in Canada's medical marijuana market, and over the past year, it has inked supply agreements throughout Canada that could allow it to capture a similar share of the recreational market. If Constellation Brands' 15-year forecast is correct, then Canopy Growth's revenue in Canada could exceed $3 billion in the future, and that's just Canada. The company's investments in other countries that are legalizing marijuana, including Germany, could add billions of dollars more in sales. Germany's population is more than twice as big as Canada's, and last quarter, Germany contributed 14% of Canopy Growth's.”