Longs hold strong, 3.7 Billion is all you need to be worried about. That's the cash Canopy can afford to spend and that gives them a serious advantage over other companies. As well all know there is a big push in the United States to legalize marijuana at the Federal level. We've already had several states legalize it but until it gets the Federal approval, companies like CGC can't enter the market. We have a big election for President coming in 2020 and the Democrats are really working hard to get someone elected and oust Trump. Many democrats are sympathetic towards the push for marijuana legalization and I feel if we do get a democratic President, it's only a matter of time before National legalization happens.
Canopy is poised to dominate the U.S. market and has already been making inroads towards that goal. Their recent investment in U.S. Hemp and establishing a foothold here is nothing short of genius. In the event we do get the law changed, those hemp facilities could be immediately converted towards marijuana cultivation and production. Make no mistake, hemp is a profitable product but the big money is in weed.
So long term shareholders understand that there will be a lot of market swings between now and then. Those that panic sell will regret their decision in a few years. I can not even imagine how high the spike in share price will be if and when the U.S. ever announces full legalization. It will make many millionaires, of that I'm sure.
If your just here for short term gains, I understand. Been there and done that but if you have a lot of your savings tied up in this, then don't panic. This is a solid stock in that they have tons of assets, a great management team, solid reputation, plenty of cash reserves and a bright future. The most important aspect however is they have a vision of the future and a solid plan in place to make it a reality.
