| BIC_BAWS | 08-24-2018 09:05 AM |
Quote:
Originally Posted by Energy
(Post 8916095)
I actually don't know why the price keeps going up now. There's nothing new since the Constellation deal.
| According to Motley Fool,
Consetellation initally purchased a 9.9% equity stake in Canopy Growth in late October 2017 for about $190 million.
In June, Constellation Brands further solidified its position by acquiring a third of Canopy Growth's 600M CAD convertible note. Quote:
Then, last week, Constellation Brands surprised Wall Street when it announced an additional $3.8 billion equity investment in Canopy Growth, which works out to 104.5 million shares of common stock. The price Constellation paid per share to up its ownership stake in Canopy Growth to 38% was a 51% premium to where Canopy had closed on the day prior to the equity stake announcement. Furthermore, the deal comes with 139.7 million in new warrants to be held by Constellation Brands. If exercised, it could up its stake in Canopy Growth to more than 50%.
| Given this, there is a real possibility that Canopy Growth will be the last one standing after the speculation period is over - Oct 17, 2018. Maybe we can expect to see long term growth to be worth hundreds of dollars.
But I'm not in it for the long term play.
Edit: Analysts think that market cap for WEED is 11.5Mil, it's currently sitting at 11Mil. Getting close.
Edit 2: https://www.fool.com/investing/2018/...x?fs_test=True Quote:
Another important factor is that the opening of Canada's recreational marijuana market is right around the corner. The country is scheduled to begin allowing sales of recreational cannabis for adult use on Oct. 17, 2018. Earlier this week, Ontario, which has the largest population of all of Canada's provinces, announced supply agreements with 26 licensed producers, including Canopy Growth, Cronos Group, and Tilray.
Other Canadian marijuana stocks have also enjoyed big moves, but Canopy Growth, Cronos Group, and Tilray have stood above the pack. The most likely reason behind this is that they're the only Canadian marijuana stocks that are listed on U.S. exchanges.
Now what?
If we're indeed seeing institutional investors move into the top Canadian marijuana stocks, it could take a while for them to reach their target positions. While their buying continues, it will likely attract other investors to the stocks as well.
| So it looks like maybe institutional investors are carrying the growth. No doubt the correction will happen soon, whether thats Monday or not is the real question. Still holding 60% of my original position in WEED, hope it goes up higher. Stop limit set at 57. | 