Canopy Growth Corp (TSX:WEED): The Last Month Shows Us Why This Is the Top Cannabis Stock to Own

Cannabis stocks have continued their volatile ride again in the last month.

That’s no surprise.

What is also not surprising are the numerous news items that further solidify the opinion that, if you are willing to accept this volatility and the inherent risks to participate in the cannabis boom, Canopy (TSX:WEED)(NYSE:CGC) is the cannabis stock to own.

Aphria (TSX:APHA)(NYSE:APHA)

Aphria stock is down 17% in the last month, as very disappointing third-quarter fiscal 2019 results as well as the expiry of Green Growth Brands’s bid to acquire the company, sent the stock into a tailspin.

Latest quarterly results showed a company that has had to tackle with a huge write-down of its Latin American acquisition, accelerating net losses, and lower-than-expected revenue growth, placing the expectations that are built into the stock into question.

This coupled with the removal of Green Growth’s bid have left Aphria in the dust.

Aurora Cannabis (TSX:ACB)(NYSE:ACB)

Aurora Cannabis stock has been pretty much flat in the last month, as the company continues to acquire cannabis companies in an attempt to increase its size and production capacity.

From a market share and production perspective, this is good.

But from a shareholder value perspective, the way that these acquisitions have been made is not good.

One of the biggest concerns with this stock is the shareholder dilution that has taken place.

Aurora Cannabis shares outstanding have more than doubled in the last year, effectively eating away at existing shareholders’ holdings, and it doesn’t look like this will be stopping any time soon.

The company recently filed a prospectus to enable it to raise up to $750 million through common shares, debt securities, subscription receipts, units, warrants, or any combination thereof during the 25-month period that the prospectus is effective.

Canopy

Finally, on to Canopy stock, which has rallied 16% in the last month and is fast approaching Oct. 2018 highs of $73.75.

Recent news out of Canopy was the announcement of its plan to acquire leading U.S. cannabis operator, Acreage Holdings.

This is a very proactive move that is Canopy’s attempt to keep its first-mover advantage and extend it to the U.S. Canopy made this unprecedented move to acquire “at such time as cannabis production and sale becomes federally legal in the United States.”

Final thoughts

Canopy and other cannabis companies will be reporting fourth-quarter fiscal 2019 results in June, and until then, we can expect these stocks to continue to trade on sentiment, news, and excitement (or nervousness) about the future of cannabis and cannabis stocks.

You might be missing out on one of the biggest opportunities in Canadian investing history…

Marijuana was legalized across Canada on October 17th, and a little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

Besides making key partnerships with Facebook and Amazon, they’ve just made a game-changing deal with the Ontario government.

One grassroots Canadian company has already begun introducing this technology to the market – which is why legendary Canadian investor Iain Butler thinks they have a leg up on Amazon in this once-in-a-generation tech race.

This is the company we think you should strongly consider having in your portfolio if you want to position yourself wisely for the coming marijuana boom.


Learn More About This TSX Stock Now

More reading

Fool contributor Karen Thomas has no position in any of the stocks mentioned.

Source: The Fool
Canopy Growth Corp (TSX:WEED): The Last Month Shows Us Why This Is the Top Cannabis Stock to Own
The Fool

The Motley Fool
Contributor at mjcanada.ca
The Motley Fool is dedicated to helping the world invest — better. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, mutual funds, and premium investing services.

In all we do, we take a different approach.

We believe – and have proven over decades – that the individual investor can beat the market.

We believe that anyone can do it, even if they don’t have a lot of time or money to devote to investing.

We believe in a long-term outlook, helping people build wealth over time.

We believe that the person best positioned to take care of your financial future is you.

And we work tirelessly on behalf of our hundreds of thousands of members who are enjoying the opportunities that come with having enough money to do the things that matter to them.

While we are headquartered in Alexandria, Va., The Motley Fool advocates for the individual investor around the globe with offices in the UK, Australia, Canada, Singapore, and Germany.

Related News