Canopy Growth Starting on April 11th, moved from 31.81 to 52.32 on April 29th at 2PM.
This incredible upswing in price can be attributable in full to the Acquisition of Acreage holdings, which according to The Motley Fool, was only the rights to purchase it on the contingency that the United States federally legalized pot.
In the time since, many stocks like Cronos group, and Aurora saw momentary gains from these news outbreaks. An event which I personally would attribute to investor speculation; about other acquisitions for other securities that investors are assuming are happening or are hoping to happen.
Only one thing is clear so far, and that is that Canopy Growth has proven to investors that it is the best choice for winning the pot stock game of thrones.
Personally I feel as if CGC, CRON, and ACB are all potentially overvalued at the current moment. I would like to purchase more shares in the event that ACB goes down to 8 dollars. CRON may not be over valued but it needs to show me that it is not going to lose my money if I trust the company to deliver good results next quarter. Canopy Growth with its 16 billion – 17 billion dollar market cap, and domination of sales last quarter over other companies is my pick for this green rush, it is also a pick that the likes of Jim Cramer agrees with.
Whoever you end up choosing to invest your funds with just remember, we are a long way away from federal legalization in the United States. Therefore it is smarter to do research about the global legal sales of pot, and not the United States as it is still unknown whether the country will ever be a host for federally legal pot.
Also included at the bottom are my list of predictions for the next weeks prices
Often people say, “what goes up must come down”. This is most likely the case with all of the stocks in the cannabis sector. In the last few months, big names such as CRON, ACB, TLRY, CGC, NBEV, and GTEC have all risen from positive news based on the sector. However this alone has led most investors to expect some sort of bubble crash recession to result, although many feel this (3/21/19) downturn will lead to even more stock growth.
Mainstream news has been filled with articles claiming that the entire sector had been over valued for weeks. With Cronos Group’s earnings report report coming at 8:30AM on March 26th, investors are awaiting a signal to see if more selling is to come or not. Currently however as of 1:00PM March 21st, the sector is in full sell off mode due to market downturn and volatility. I believe the sector is facing market risk as well as sector risk during this current downturn and will possibly rebound with the market if the news reports about the sector say anything positive. Sector risk appears to be the main issue at the moment however, everyday another un-related company disappointing its investors ends up affecting other companies un-related to that news.
My current predictions for the week of March 25th-29th are as follows:
MJ – Low of 34
CRON – Low of 17.50
ACB – Low of 8.00
CGC – Low of 43.50
The prices being driven down is a positive factor as it will allow investors to begin the process of buying shares at a price they feel comfortable with. If an event were to occur that makes the stocks depreciate more than expected, it would lead to a great buying opportunity for anyone who is attempting to go long on this sector. Short term downsides will only help in the future, as they will allow investors such as myself to get better cost basis’s on their long portfolio’s.