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Is All Hope Lost for Canopy Growth After Q1 Earnings?
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Is All Hope Lost for Canopy Growth After Q1 Earnings?
fool.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.com Daily Mail and Mail on Sunday newspapers.
Canadian cannabis company Hexo unveils its third and biggest deal of the year so far MarketWatch 1 hr ago
CANNABIS WATCH © robyn beck/Agence France-Presse/Getty Images
Canadian cannabis company Hexo Corp. announced its third and biggest deal of the year so far on Friday with news that it is acquiring privately held Redecan for C$925 million ($764.7 million) in cash and stock.
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Gatineau, Quebec-based Hexo said the deal will propel it to leader in the Canadian adult-use cannabis market and give it number one position in Canada’s four biggest markets, Alberta, British Columbia, Quebec and Ontario.
“The Canadian adult-use industry continues to evolve at a rapid pace, and we are at the forefront of that change,” Hexo Chief Executive and co-Founder Sebastien St-Louis said in a statement.
Image source: Getty Images
Canopy Growth (TSX:WEED)(NYSE:CGC) is one of the largest Canadian cannabis companies that led the charge, as the legalization boom took place. It also suffered a drastic pullback as speculation died down. After a significant period of remaining low key, Canopy was off to a fantastic start for 2021.
Canopy’s valuation almost doubled between January 1 and February 10, 2021. After reaching its peak, the stock slumped again and is almost down to where it began this year. At its current price, many investors might have good reasons to consider it a good entry point for massive upside potential.
Should You Buy Canopy (TSX:WEED) After its Supreme (TSX:FIRE) Bet?
Should You Buy Canopy (TSX:WEED) After its Supreme (TSX:FIRE) Bet?
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The cannabis sector started 2021 quite strong. The S&P/TSX Cannabis Index grew well over 130% in fewer than 40 days into 2021. But following its historical pattern, the sector started to slump and has come down 43% from its yearly peak. It did supercharge the healthcare sector and elevated it to the highest-growing sector of the first quarter of 2021.
Few
cannabis companies managed to hold on to the relatively high price point, but most have been going down considerably.
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