- Canopy Growth Corporation is enjoying broad momentum after appointing a new CEO.
- CGC's new line of Cannabis 2.0 products is inspiring investors.
- The weed firm's entry into the vast US CBD market is also an encouraging move.
Canopy Growth Corporation (CGC) is one of the prominent marijuana stocks. While rivals such as Aurora struggle with financial acrobatics, the Smiths Falls-based firm has its books more in order.
Yet the main drivers of the recent rise in its stock price stem from three reasons.
1) New boss: David Klein, formerly the CFO of Constellation Brands, has assumed his role as the new CEO of Canopy on January 14. The parachuting of a seasoned corporate manager into the driver's seat provides confidence for investors. Moreover, Klein is familiar with the firm as he already served on Canopy's board. CNBC's Jim Cramer has also weighed in, praising the new CEO and saying he has got "horse sense."
2) Cannabis 2.0: Chocolates, vapes, and also distilled cannabis offering form part of GCC's new line of products dubbed "Cannabis 2.0." The recently secured license to operate its large new beverage facility in Smiths Falls will enable it to develop and market THC and CBD-infused beverages. These include the Houseplant Grapefruit and Houseplant Lemon, both standard 355ml beverages containing 2.5mg of THC. Canopy will use the Quatreau brand name to market CBD-based wellness drinks.
3) US CBD Market: Perhaps most importantly for the Canadian company is its entry to the vast American market. Late in 2019, CGC launched its First and Free brand in 31 US states where CBD is legal. Apart from the vape products, the firm offers softness, oils, and creams. It has also begun sourcing hemp from American farmers based in New York state, among other places.
All in all, these three drivers are pushing the firm forward.
Canopy Growth Corporation Stock price today
CGC, traded in the New York Stock Exchange, has risen by over 25% from the lows under $20 in late December to $24.30 at the time of writing. On Thursday, shares corrected some of their gains and dropped by 2.4% or $0.60.
Nevertheless, CGC's reasons to rise and the general upbeat market mood – following the signing of the Sino-American trade deal – may help Canopy resume its rises.
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