Canopy CEO Predicts U.S. Legalization by 2022

I call it the “holy grail” of the cannabis industry – a game-changing event that would mint the first cannabis billionaire and richly reward early investors.

I’m talking about the federal legalization of cannabis.

Some say it’s still a pipe dream, years away at best. However, the reality is that federal legalization could be right around the corner.

If you don’t believe me, check out what the CEO of the largest cannabis company had to say in an interview with Jim Cramer on Mad Money.

Here’s the clip from CNBC.

David Klein, the head of Canopy Growth, told CNBC’s Jim Cramer on Tuesday that as states continue to gradually permit medical and recreational use of marijuana, Congress will have no choice but to act.

“My assumption is that 2022, for me, is the magic number,” he said in a “Mad Money” interview. “I think, as you watch more and more states move to legalization for medical or rec, you really bring in almost two more senators each time who are really going to feel compelled to not make criminals out of the people in their state who are doing what’s legal in their particular state.”

Why Klein’s Comments Are an Important Signal

#1 – CEOs have an incentive to establish realistic goals that are attainable. It doesn’t do a CEO any good to set expectations really high and then fall short. For Klein to publicly project legalization in 2022, it tells me he knows about things that are happening behind the curtain. I think he’s showing his hand.

#2 – U.S. federal legalization by 2022 is the most optimistic projection that I’ve heard from anyone on Klein’s level.

#3 – As the CEO of Canopy, Klein has access to the best contacts and information in the industry. His opinion about the cannabis industry carries a lot of weight.

Current Events Are Pointing Towards Legalization

COVID-19 just made the case for legalizing cannabis stronger than ever. The U.S. economy shed around 40 million jobs in eight weeks. According to recent reports, many of those jobs are never coming back. Tax revenue has plummeted. Officials are calling it catastrophic. Politicians are desperate for new sources of taxes. Continue reading "Canopy CEO Predicts U.S. Legalization by 2022"

Will Canopy Growth Corp (CGC) Jump 250%?

Aurora Cannabis (ACB) just jumped 250% in two days after reporting third-quarter earnings that crushed expectations.

Not many people saw that huge jump coming. If you missed it – don’t worry.

I see a high probability that the same pattern will repeat itself on Friday morning when the largest cannabis company in the world reports highly anticipated fourth-quarter earnings.

Here’s what you need to know and how to play Friday’s big event.

Aurora Cannabis (ACB) is one of the largest cannabis companies in the world. Shares of ACB jumped 250% in two days last week after reporting third-quarter results that crushed expectations.

Here are some more details from Aurora.

  • Net revenue, excluding provisions, of $78.4 million in Q3 2020 was up 18% quarter over quarter. Cannabis net revenue, excluding provisions, was $72.6 million, up 15% over Q2 2020.
  • Consumer cannabis net revenue, excluding provisions, was up 24% from the prior quarter to $41.5 million, demonstrating the impact of the launch of Daily Special, Aurora’s value brand, and a full quarter of Cannabis 2.0 products. Medical cannabis net revenue, both Canadian and international, showed healthy growth of 13.5% overall.

Aurora Cannabis Announces Fiscal Third Quarter 2020 Results & Operational Reset Update

Canopy Growth Corp

These results send an important and encouraging message to investors – cannabis stocks are shifting into a bullish phase.

In 2019, pot stocks fell short of lofty expectations. Today, the sector is crushing more realistic expectations.

Canopy Growth Corp (CGC) is the largest cannabis company in the world with a market cap of $7 billion and operations on four continents.

Canopy is scheduled to report fourth-quarter results on Friday, May 29, 2020, before the opening bell. Aurora’s impressive results tell me that Canopy is also going to crush expectations.

Here’s why… Continue reading "Will Canopy Growth Corp (CGC) Jump 250%?"

Cannabis Sales Surge On Coronavirus

Coronavirus is having a devastating effect on many industries in the United States and across the globe.

For example, millions of US citizens are canceling travel plans and that is crushing US airline industry revenue. That's why the US airline industry just asked for a $50 billion financial bailout from the federal government that would be three times the size of the airline bailout after September 11.

This big drop in sales is causing a lot of pain for shareholders. Airline stocks have been getting hammered.

United Airlines Holdings Inc. (UAL) is down -60% from the 52-week high, much worse than the S&P 500’s -12% decline from the 52-week high.

UAL

However, not all industries are struggling right now. In fact – some are thriving.

Cannabis sales have been one of the few bright spots while most industries are in a tailspin. Continue reading "Cannabis Sales Surge On Coronavirus"

Edibles Leader Begins Trading In Canada

The edibles market has quickly evolved into one of the fastest growing cannabis subsectors.

With Canada set to legalize edibles this year and more US states legalization medical and recreational cannabis, annual sales of edibles in the US and Canada could hit $4.1 billion by 2022.

While Dixie Brands (DIXI, DXBRF) is still my favorite edibles company right now, I see another promising cannabis company that is already cashing in on the edibles trend.

Slang Worldwide Inc. (SLNG) is headquartered in Denver, Colorado and is an early leader in the high-growth, US edibles market.

This company…

  • is one of the largest edibles companies in the US.
  • owns some of the most popular edibles brands in the industry.
  • is seeing sharp growth in sales.
  • just went public on the Canadian Securities Exchange.
  • Slang is already an established leader in the US cannabis industry with a market cap of approximately $600 million. That makes this one of the largest cannabis companies and cannabis IPOs we have seen in the last six months.

Slang operates in ten US states, including high-growth states such as Colorado, Nevada, and California, and plans to be in ten more states by the end of the year. Its products are sold in more than 2,600 stores and across five continents. Continue reading "Edibles Leader Begins Trading In Canada"

The #1 Stock For The US Hemp Boom

Canopy Growth Corp (CGC, WEED), the largest cannabis company, just made history in the US cannabis industry.

Canopy just became the first cannabis company ever to receive a permit from the state of New York to grow hemp.

This is a big win for Canopy and a shot in the arm for the US hemp industry. The new license gives Canopy a valuable first-mover advantage in the high-growth US hemp market. That should help Canopy build on its early industry leadership in the global cannabis market.

I’m also impressed by how quickly this deal happened. The Farm Bill passed less than a month ago and the state of New York has already issued its first hemp permit. This is an important indicator. It tells me the US hemp market is about to be unleashed with states such as New York ready to open the door.

The good news gave Canopy a boost on the chart – shares jumped 11% on the day and are now up 58% in the last three weeks. Continue reading "The #1 Stock For The US Hemp Boom"