Weeks have passed since Canopy Growth (TSX:WEED)(NYSE:CGC) reported its latest quarterly earnings. Yet the market buzz about the stock lingers. Despite the wider loss from a year ago, the excitement over the income possibilities remains strong as ever.
Investors are not letting go and continue to regard Canopy Growth as the top draw in the cannabis space. The healthy sales numbers are truly reassuring. But perhaps the brand name recognition is what’s keeping the company alive in the minds of investors for the moment. Presumably, a string of victories is highly anticipated.
Hope springs eternal
Based on the company’s unaudited financial statements, top-line revenue in Q3 2018 jumped 350.24% to $97.7 million with a corresponding net income of $74.9 million. However, on a year-to-date basis, Canopy Growth incurred losses amounting to $346.7 million.
The figure is disappointing, to say the least, but the greater majority of stock market players are keeping their fingers crossed. Canopy Growth sunk deep and ended 2018 at $36.61. But hope springs eternal, and investors who stuck it out last year have stopped fidgeting.
A day before the month of February closes, WEED finished at $60.17, which represents a +64.35% increase from the bottom of the pit. The period of redemption is at hand. The growth prospects that have been promised were rekindled.
Just like the multitude of Canopy Growth followers, are you longing for something extraordinary to happen this year? Do you see a great tide developing? The company and its management team are equally enthusiastic about the future. Realizing the vision of becoming the number one cannabis company is as real as it can get.
Brace for a phenomenal explosion
There’s fresh cause for optimism in the cannabis industry. First and foremost is that cannabis will find its rightful place in the mainstream. Gone are the days of clandestine operations. As the industry moves forward, consolidation becomes imminent.
Big players will gobble up the smaller companies. You can expect the larger entities to improve operational efficiencies and turn in higher profits. The pace will be fast and furious. Meanwhile, Canopy Growth will rack up the sales of adult-use marijuana. The “true” impact of cannabis legalization will be reflected in the quarters ahead.
Canopy Growth is determined to boost its 18% market share. The company is out to prove its ability to spawn sequential growth. In the U.S. market alone, sales of marijuana are seen to top $80 billion by 2030. This gives you a compelling reason to give this Canadian grower serious consideration.
The clear favourite
Robust growth is expected with more U.S. states favouring legalization while sustained growth in North America is clear as day. The adult use sales could hover in the vicinity of $3.1 billion as retail access spreads.
Canopy Growth is slowly plugging in the loopholes and rectifying the supply shortages. The projected $239 million sales in fiscal 2019 could exponentially grow to $778 million by 2020. Despite previous shortcomings, Canopy Growth is the clear favourite if you seek large gains.
Marijuana was legalized across Canada on October 17th, and a little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
Besides making key partnerships with Facebook and Amazon, they’ve just made a game-changing deal with the Ontario government.
One grassroots Canadian company has already begun introducing this technology to the market – which is why legendary Canadian investor Iain Butler thinks they have a leg up on Amazon in this once-in-a-generation tech race.
This is the company we think you should strongly consider having in your portfolio if you want to position yourself wisely for the coming marijuana boom.
Fool contributor Christopher Liew has no position in any of the stocks mentioned.