A Republican representative has proposed new legislation to deschedule cannabis (making it less restrictive), which has given the cannabis stocks some momentum.
Canopy Growth Corporation (WEED.TO)
From Power Growth Investor
First, the good news: widening cannabis legalization will eventually lead to some great business successes. The bad news is that only a few of the multitude of cannabis stocks today will pay off for investors. Consumer cannabis demand is high, but growing and distributing it across multiple markets is more difficult. With “Cannabis Corner,” we focus on quality stocks that are most likely to emerge as winners in the “Wild West” of marijuana investing.
Canopy Growth (Toronto symbol WEED/TO; TSINetwork Rating: Speculative, TSI Cannabis Quality Rating [CQR]:) is acquiring privately held Wana Brands, a Colorado-based cannabis edibles brand that believes it leads the North American gummies category by market share.
Rather than buying Wana outright, Canopy will buy an option to buy 100% of the company if cannabis becomes federally legal in the U.S. It will pay $297.5 million U.S. for the option. The future cost of buying Wana has not yet been disclosed.
Canopy Growth is a speculative buy.
Patrick McKeough, Power Growth Investor, tsinetwork.ca, 888-292-0296, November 2021