Chart of Day: Revisiting Canopy Growth (CGC)
“Cannabis stocks may be some of the most controversial opportunities on the market. But many could also be rewarding – especially with these key catalysts. Look at Canopy Growth (CGC), for example,” we said just two weeks ago.
“With several key catalyst ahead – such as potential rescheduling ahead of elections, a growing number of Americans approval of legalization, and an upcoming Florida vote on adult-use legalization – related stocks could see higher highs,” we added.
At the time, CGC traded at just $6.70.
Today, it’s up to $14.88 and could see higher highs on substantial catalysts.
For one, the US DEA said it will reclassify cannabis as a less dangerous drug. As noted by the Associated Press, “Once OMB [White House Office of Management and Budget] signs off, the DEA will take public comment on the plan to move marijuana from its current classification as a Schedule I drug, alongside heroin and LSD. It moves pot to Schedule III, alongside ketamine and some anabolic steroids.”
Two, a growing number of Americans want to see it legalized. In fact, according to Pew Research, about 88% of Americans want to see that happen.
“An overwhelming majority of U.S. adults (88%) say either that marijuana should be legal for medical use only (32%) or that it should be legal for medical and recreational use (57%). Just 11% say the drug should not be legal in any form. These views have held relatively steady over the past five years,” reported Pew Research.
Even an upcoming vote on adult-use in Florida has been fueling upside.
According to MJBizDaily.com, “Florida is poised to become the next state to legalize adult-use marijuana. The state’s Supreme Court ruled Monday that an industry-funded ballot initiative will appear on state voters’ November ballots.”
If you jumped into CGC, congratulations on the wins.
Ian Cooper is an experienced trader who uses a combination of technical, fundamental, and news analysis to help individual investors grow their wealth. Ian’s Premium Options Strategies