Canopy Growth (TSX:WEED)(NYSE:CGC) rounded out a rough year with the Canadian cannabis sector suffering a series of disappointments.
Fortunately, Canopy Growth has a mountain of cash to fall back on and has made crucial progress in positioning itself in a future U.S. cannabis market. When this time will come is anyone’s guess. So, is it worth it to jump on Canopy Growth in the early part of the New Year?
Shares of Canopy Growth have dropped 10% over the last three months as of late afternoon trading on January 2. As the largest cannabis company by market cap in Canada, Canopy will benefit from more retail stores being launched in the coming months.
The larger provinces, particularly Ontario and Quebec, have largely failed in making these outlets available to consumers. These developments have led to a strengthened black market.
The big producers are also cranking up offerings in the wake of "Cannabis 2.0". Canopy Growth is leveraging its partnership with Constellation Brands and has launched a huge trove of products including cannabis-infused beverages, chocolates, and vape pens.
Canopy just launched its first hemp-derived CBD product in the United States, but it will only be available online at a new website. There has been little progress on the federal level, so investors may have to hold their breath until the end of the 2020 election.
Two of the top Democratic candidates, Bernie Sanders and Elizabeth Warren, have pledged to pursue federal legalization. A political win for cannabis in the U.S. is something to watch for in the latter half of this year.
