Canopy Growth Corp. Stock CGC Falls to All-time Lows After Riding High a Week Ago
(By Glenford S. Robinson)
Canopy Growth Corporation stock, (NYSE: CGC) Plummeted 27% days after Canada ushered-in the new era of legalized Cannabis on October 22, 2018; Canada being the second country in the world behind Uruguay to legalize the green leafy medically useful plant is set to rake in billions from the sale of recreational use and medical use of the Bob Marley advocated plant, with his popular and legendary hit song, “Legalize It.”
Now with legalization in full effect in Canada and elsewhere, who is the true profit? I will let you ponder over that one! The way things are going; legalization is already changing the face of the society in Canada. People can now be seen standing in long lines waiting to get their hands on the legal stuff.
One company called Lexaria Bioscience Corp., (OTCQX: LXRP) is said to have developed a patented technology that helps make cannabis available to nonsmokers; claiming that the company’s innovative development methods make the active chemicals in cannabis more palatable and a lot more effective in food and drink…Wow! Inducing a burp instead of a cough. Companies such as Tilray, Inc. (NASDAQ: TLRY) have begun to expand their production to cater to this growing market of edible cannabis, which is immediately paying dividends to the companies’ bottom lines, resulting from the rise in share prices and values.
Canopy Growth Corp., stock rocketed up the charts last week when the company announced on October 15, 2018 that it had agreed to buy Colorado-Based Hemp Innovator Ebbu. The news sent the stock through the roof topping off at a whopping $59.65 per share on Tuesday, October 16, 2018, thirty minutes before market opened.
However, since the stocks’ historic move up the charts, it had struggled mightily to regain its upward momentum. The stock performed so badly that proponents of the stock had began to panic. In fact, those people who have began to panic have good reason to do so because the stock had fallen so fast ending up at a dreadful low of $36.62. Oh my gosh that is a decrease of 61.4%. Can you imagine seeing your investments decrease from one million dollars to $614,000. So, it is understandable why some people are panicking. I would panic too! No! Not really.
In the financial markets one person’s loss is another person’s gain. So, that means someone (a Quant) out there in the dark shadows of Wall Street made $386,000 on his or her one-million-dollar investment. Wow! That is one whole heap of dollar bills. That is enough to buy a luxury mansion in Texas.
So, should there be panic in Canopy Growth Corporation’s recent stock price decline. Absolutely Not! Before ever investing in any security, one should first consult with his or her own investment advisor. A well experienced and seasoned investment advisor will help you invest in a stock that has a very promising upside or a very high intrinsic value, like Warren Buffet. Buffet invest in low value, high intrinsic value stocks with a very promising upside. Therefore, a savvy investment advisor will recognize the opportunity to absolutely load-up on Canopy Growth while it’s cheap.
The truth is that CGC will not remain at the low levels it is at right now, as of this writing—mark this date—October 23, 2018. For all intensive purposes, this stock will hit one hundred dollars per share in the not-so-distance future. I don’t know exactly when this will happen because I don’t have a crystal ball; but I can say, with some degree of certainty that this stock CGC will be 100 dollars per share soon; take that to the bank, signed and sealed!
Disclosure: I, we, us, Mstardom Finance are long on CGC.
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I am a Clinical Lab Scientist, entrepreneur, investor and trader (stocks and Forex). I enjoy writing and publishing articles online.