A Word About Canopy Growth From Our Chief Investment Adviser
Dear Foolish investor,
I bought some Canopy shares back in January. It was purely a speculative position, and as such, I sized it to be only a small investment, but my thinking was that Canopy seemed to be best positioned to be a leader in an emerging industry. I envisioned grand things for the stock as the industry matured—over the next 5-10 years.
What’s happened since has completely blown my mind. I’ve never been part of a stock that’s made this kind of short-term move—which is validating and downright fun.
Here’s what we know: Canopy remains highly speculative, although it continues to be very well-positioned to be an industry leader. The “industry,” however, remains entirely unknown. The government holds the cards, and how they’ll be dealt, nobody knows.
But instead of the company being worth $200 million or so under this kind of scenario, which I thought made sense, it’s now worth north of $1.2 billion, even though the industry is completely undefined.
Personally, under these circumstances, I’ve lightened my position. My Canopy stake had grown too large for a speculative stock, and so I recently sold off three-fifths of my original holding.
This is just my personal take and how I’ve elected to handle a rather incredible, and entirely unexpected, development, but with a nice profit, I’m content to live with my remaining shares and see what happens in the years to come.
Potentially significant upside remains, but the risks at this point are perhaps even more significant.
Plus, there’s a different upstart Canadian stock I’m even more bullish on—detailed just below. I encourage you to read on and find out the full story on this “breakthrough” Canadian growth story …
To investing success,
Iain Butler (as mentioned, Iain continues to hold shares of Canopy Growth)
Breakthrough IPO Receives Rare Endorsement
By: Jordan DiPietro
For Only the 5th Time in 14 years, The Motley Fool’s Co-Founder Just Issued a Buy Recommendation on a Recent IPO.
And people are paying close attention because his stock recommendation service has tripled the S&P 500’s return (178% vs 60%) since 2002.
That performance led The Wall Street Journal to report on a study that ranked his service as one of the best performing stock newsletters in the world.
Now he describes his latest find as a “scalable Internet platform that costs fairly little to operate and can produce enormous profits.”
Over Motley Fool Stock Advisor’s 14-year history, David Gardner, the Motley Fool co-founder mentioned above, has recommended hundreds of stocks that have racked up truly impressive returns.
While Wall Street has doggedly insisted that individual investors can’t beat the stock market, David’s long track record of beating the S&P 500 has proven them wrong.
And he hasn’t just beaten the S&P 500 by a little bit… he has absolutely smashed it: Motley Fool Stock Advisor’s 178% return over 14 years is close to 3X the S&P 500’s 60% return over the same time period.
That’s right – Stock Advisor has nearly tripled the stock market’s performance.
If you’re tired of paying Wall Street exorbitant fees in exchange for underwhelming performance… if you want to put your foot down and take control of your own money…
Then you should consider paying close attention to David’s latest find.
Because over the course of 14 years – and making hundreds of stock picks – on only 4 occasions has he recommended buying a recent IPO.
You see, David usually likes to wait and see a company prove itself in the public markets for a few years before recommending investors buy shares. But sometimes, on rare occasions, he believes in a company so much that he pounds the table and urges investors to act fast and grab shares.
Perhaps no example better highlights this rare conviction than David’s recommendation of Amazon.com. Amazon was a small-cap stock that had just gone public when he first published his detailed, 4,250 word “buy” report on Amazon’s stock AND added shares to his portfolio.
David predicted Jeff Bezos’s vision for Amazon. David told investors “Amazon is about more than just books.”
Amazon had been public for just 4 months when David issued this bold “buy” recommendation but boy, did it pay to listen.
Fast forward to today, Amazon’s stock is up a mind-boggling 20,000% — turning every $5,000 invested in Amazon when David’s first recommended it into nearly $1 million today.
While you can’t go back in time and invest in Amazon alongside David Gardner, I believe I’m offering you the next best thing…
59 Million Active Monthly Users and Counting
Which brings me back to the newly IPO’d company David just recommended – a company with strikingly similar traits to those that made David first issue his Amazon call.
First, with a market cap of around $4 billion, this fresh IPO stock is essentially still a small-cap.
And like Amazon, this company has been growing like gangbusters!
The company has grown the size of its user base by 63% annually for the past 4 years – giving it more than double the market share of its next closest competitor.
Unlike many recent IPOs, this company is an established and profitable business, with 59 million active monthly users and counting.
Even more exciting, management still believes they’ve only captured 11% of the potential market for their product.
David sees great things ahead for this company, describing them as a “scalable Internet platform that costs fairly little to operate and can produce enormous profits.”
That’s exactly why David is recommending investors buy shares now.
In addition, there’s another very interesting reason you’d probably get excited about this stock…
- Because this company resides in Canada, our Stock Advisor Canada team has been eyeing this company for quite some time – even before it came on the public markets. And so in March of this year, Canadian Chief Investment Adviser, Iain Butler, recommended that thousands of loyal members “buy” this stock as well.And what do you know – in just a few short months, the stock is already up 41%. But we’re not selling – we’re still urging members to quickly snap up shares as fast they can. The company – a rare small-cap tech firm in Canada – has over 243,000 merchants using its platform. It counts Amazon, Facebook, Tesla, Procter & Gamble,and Budweiser as its customers – among many others. And – it’s grown its revenue a whopping 94.7% in just the last quarter!
That’s the type of growth and competitive advantage that gets David Gardner’s heart pumping, and immediately alerted our own Canadian team to take notice as well.
Remember the old saying, “the early bird gets the worm” – an ageless mantra reminding us that early movers often have the best chance of success.
That’s exactly why Chief Investment Adviser, Iain Butler – and David Gardner! – are recommending that you buy shares now.
But please note: as of right now, you could miss out because you may not be eligible to access the stock pick.
You see, Iain Butler and the Stock Advisor Canada team only release these recommendations to members of their service, Stock Advisor Canada.
Lucky for you, it’s not too late to join, so I’m going to show you the simple steps to secure access today.
It’s very telling that both David and Iain couldn’t wait any longer to recommend this recently IPO’d stock with these unmistakable traits.
Don’t miss out. The pick just recently came out, so there’s still plenty of time to get the full story on this remarkable Canadian small-cap.
Simply click here to learn how you can unlock the full details behind this new recommendation and join Stock Advisor Canada today.
In case you’re strapped for time, I just tested it myself and joining took less than two minutes.
I urge you to take action today so you can learn about the time-tested tactics savvy investors are using to systematically build their wealth. Simply click here to get started!
David Gardner owns shares of Amazon.com, Facebook, and Tesla Motors. Tom Gardner owns shares of Facebook and Tesla Motors. Jordan DiPietro owns shares of Amazon.com, Facebook, and Tesla Motors. The Motley Fool owns shares of Amazon.com, Facebook, and Tesla Motors. Returns as of August 5th, 2016. “Look Who’s on Top Now” appeared in The Wall Street Journal which reference Hulbert’s rankings of the best performing newsletters over a 5 year period from 2008-2013. The Motley Fool has a disclosure policy. Returns are as of August 17th, 2016.