Canopy Growth Corp (TSX:WEED)(NYSE:CGC) has been falling over the past few weeks, and it could be a great opportunity for investors to buy on the dip.
Since closing at nearly $70 a share, that sock has fallen more than 15%, and Monday closed at under $59. And while that's not the lowest level we've seen the stock reach this year, it's a still big drop off for Canopy Growth especially after the bullishness we saw when the company announced a contingent deal with U.S. cannabis company Acreage Holdings Inc (CNSX:ACRG.U).
The possibility of Canopy Growth adding a big company south of the border into the fold adds significant value to its global brand. However, the big question is just when the deal will close, if at all, as it is dependent on the U.S. legalizing cannabis federally.
As Canopy Growth continues to wheel and deal, it's inevitable that we'll see its stock get some more momentum behind it as it continues to expand its growth potential not only in North America but around the world as well.
Investors waiting for the stock to keep on falling and becoming a good value buy will be waiting a long time, as the stock would have to fall off a cliff for it not to trade at significant multiples to its sales.
Ultimately, it's more likely that the stock will recover from this latest decline as Canopy Growth still has a lot going for it, including when it will inevitably unveil its beverage products when the edibles market becomes legal.
