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Canopy Growth (CGC) Gains on Hemp Legalization, Institutional Interest
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Shares of Canopy Growth (CGC - Free Report) were up more than 6% in late afternoon trading Tuesday, as investors expressed optimism about the Senate’s hemp legalization bill and management’s comments about interest from institutional investors.
Members of the U.S. Congress added a hemp legalization provision to the final version of the 2018 Farm Bill, and that law is now expected to be voted on later today. The provision received bipartisan support, with Senator Ron Wyden (D-OR) helping the Democratic push and Senate Majority Leader Mitch McConnell (R-KY) signing the final bill language with a hemp pen on Monday.
McConnell called the inclusion of a hemp legalization provision a “victory for farmers and consumers throughout our country,” while Wyden declared it a “huge win for Oregon farmers and rural communities across the country.”
The news also excited investors following Canadian marijuana stocks, as hemp—a species of cannabis with limited psychoactive effects but high value for production of papers, textiles, and other materials—offers a potential entrance to the U.S. market.
Other news on this front was breaking on Tuesday afternoon, too. According to the New York Post, aides said today that New York Governor Cuomo will introduce a plan for legalizing marijuana in the state.
Cuomo recently held listening sessions across New York to gather residents’ thoughts on legal cannabis, and now his team will review that feedback in the hopes of releasing a comprehensive proposal in early 2019.
A study published earlier this year by Comptroller Scott Stringer projected that legal marijuana could be a $3.1 billion market in New York State, the Post reported. This could potentially generate hundreds of millions of dollars in state and city tax revenue.
Canopy Growth CEO Bruce Linton appeared onBNN Bloomberg earlier Tuesday to tout the recent institutional support witnessed by cannabis producers.
“What you’re seeing is retail jumping in and out. But when they get out, I think a lot of stocks—like ours—are getting institutional support,” the CEO said. “We’re going to see a shift in the 2019 theme: those which are institutional investable and those whose aunts and uncles buy and sell in the morning and afternoon.”
Canopy Growth has seen larger investments from Canadian pension funds and familiar institutions such as Vanguard Group, Morgan Stanley, and Macquarie Group. Beer maker Constellation Brands (STZ - Free Report) also owns a good chunk of Canopy Growth, upping its stake from 10% to 38% earlier this year.
Linton’s comments and today’s legalization news follow another massive partnership in the cannabis space, with fellow Canadian producer Cronos Group (CRON - Free Report) announcing this week that tobacco behemoth Altria (MO - Free Report) has agreed to take an approximately C$2.4-billion equity investment in the former.
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Canopy Growth (CGC) Gains on Hemp Legalization, Institutional Interest
Shares of Canopy Growth (CGC - Free Report) were up more than 6% in late afternoon trading Tuesday, as investors expressed optimism about the Senate’s hemp legalization bill and management’s comments about interest from institutional investors.
Members of the U.S. Congress added a hemp legalization provision to the final version of the 2018 Farm Bill, and that law is now expected to be voted on later today. The provision received bipartisan support, with Senator Ron Wyden (D-OR) helping the Democratic push and Senate Majority Leader Mitch McConnell (R-KY) signing the final bill language with a hemp pen on Monday.
McConnell called the inclusion of a hemp legalization provision a “victory for farmers and consumers throughout our country,” while Wyden declared it a “huge win for Oregon farmers and rural communities across the country.”
The news also excited investors following Canadian marijuana stocks, as hemp—a species of cannabis with limited psychoactive effects but high value for production of papers, textiles, and other materials—offers a potential entrance to the U.S. market.
Other news on this front was breaking on Tuesday afternoon, too. According to the New York Post, aides said today that New York Governor Cuomo will introduce a plan for legalizing marijuana in the state.
Cuomo recently held listening sessions across New York to gather residents’ thoughts on legal cannabis, and now his team will review that feedback in the hopes of releasing a comprehensive proposal in early 2019.
A study published earlier this year by Comptroller Scott Stringer projected that legal marijuana could be a $3.1 billion market in New York State, the Post reported. This could potentially generate hundreds of millions of dollars in state and city tax revenue.
Canopy Growth CEO Bruce Linton appeared on BNN Bloomberg earlier Tuesday to tout the recent institutional support witnessed by cannabis producers.
“What you’re seeing is retail jumping in and out. But when they get out, I think a lot of stocks—like ours—are getting institutional support,” the CEO said. “We’re going to see a shift in the 2019 theme: those which are institutional investable and those whose aunts and uncles buy and sell in the morning and afternoon.”
Canopy Growth has seen larger investments from Canadian pension funds and familiar institutions such as Vanguard Group, Morgan Stanley, and Macquarie Group. Beer maker Constellation Brands (STZ - Free Report) also owns a good chunk of Canopy Growth, upping its stake from 10% to 38% earlier this year.
Linton’s comments and today’s legalization news follow another massive partnership in the cannabis space, with fellow Canadian producer Cronos Group (CRON - Free Report) announcing this week that tobacco behemoth Altria (MO - Free Report) has agreed to take an approximately C$2.4-billion equity investment in the former.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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