Cannabis inventory is unpredictable. If you want to get into them, you are definitely someone who is willing to take some risk. Especially in the last few years. Back in 2017 and 2018, cannabis stocks seemed certain. However, it was subsequently legalized in October 2018. Suddenly, investors have chosen more options. Since then, most cannabis stocks have lost more than 50% of their value.
Despite some ups and downs over the last few years, economists have repeatedly said the cannabis bubble burst, but investors still need to hold. Canopy Growth Corporation (TSX: WEED)(NYSE: CGC) It may not be the scheme of a lot of money like it used to be. However, if you’re considering investing in cannabis, that’s probably the best bet.
Inventories have skyrocketed in the past few weeks when the Joe Biden administration entered the White House. The rally, coupled with more states that legalize cannabis, can be traced back to November 2020, when the news of Biden’s victory soared cannabis stocks.
But if you think this is a game, not a value investment, you’re wrong. That’s what makes canopy growth so interesting and, frankly, valuable.As fellow fool writer Joey Frenet “It’s important to remember that every investment is really a value investment. We will consider the price you will pay for your stock and weigh it against your future returns.”
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Yes, they do exist. Even though the revenue value (EV / sales) to sales at the time of writing is 31.6 times and the debt is $ 676.44 million, the canopy growth and so on are not yet profitable. The real reason is the same reason, or momentum, that the cannabis bubbles were created in the first place.
Cannabis stocks first occurred during the March 2020 market crash. This is a whole new industry that still has to be proven, and there is a pandemic that minimizes production. Canopy Growth had to close production facilities and recent acquisitions and even sell them to make up for the lost cash.
But here’s the good part. Its massive sale means that the company is already planning an ongoing rebound. Cannabis stocks stay here, you just have to choose the right one. Canopy growth has established itself as the world’s largest pot producer and must be appropriate. It is already positioned as a driving force for pots in the United States and is preparing for federal legalization.
When this shift occurs, the company has many stakes that increase in some companies with the acquisition, creating a shocking return for investors to embark on.This year, the pandemic is finally over, production could surge, and even Biden’s promise of decriminalization management There is no doubt that canopy growth will once again reach record highs.
As always, investments should be for long-term gains, not for quick resolution. Cannabis stocks are here in the long run, so choosing a solid company like Canopy Growth may be really good for your portfolio. If you’re going to pick it up and hold it firmly for decades, there’s nothing really to worry about by investing in this stock.
Marijuana Investor: Canopy Growth (TSX: WEED) May Surge To Return to Record Highs
https://www.fool.ca/2021/01/24/marijuana-investors-canopy-growth-tsxweed-could-skyrocket-back-to-all-time-highs-2/ Marijuana Investor: Canopy Growth (TSX: WEED) May Surge To Return to Record Highs