A nonprofit publication of the Kentucky Center for Public Service Journalism

Joe Cotton: Stock of the Week is Canopy Growth Corp.; it deals with hemp-based products

As of Tuesday, November 16, 2021 at 4:15 PM:

Last week the DOW moved down about 500 points intraday, and moved up a little on Monday and struggled to hold its gains Tuesday.

Walmart (WMT) 143.17, Boeing (BA) 225.80 and Caterpillar (CAT) 205.43 were down today. Walmart sold off strongly.

Joe Cotton

We are CAUTIOUS on the Market and we would be selling those high-priced, high PE stocks trading at the high end of their range, like Chipotle (CMG) 1827.54 which was down 11.84 points today.

Our “Stock of The Week” is Canopy Growth Corp. (CGC) 14.38. It is a Canada-based holding company that produces, distributes, and sells a variety of cannabis and hemp-based products for medical and recreational use. It is a very mainstream, well-financed company. Constellation Brands purchased a 38% stake in the company for $3.8 Billion in August of 2018. Martha Stewart is their official Strategic Advisor, and they have lots of CASH with which to make acquisitions. However, keep in mind that this is a Very Speculative Stock.

As you can see from the 5-Year chart, in 2018 it sold for $55/share and declined to $10/share in early 2020. Then it rallied back up to $55/share again early this year, and then slowly declined back down to about $11.50 on Friday, November 5th. Almost all the Pot Stocks are selling at historic lows, but they have been moving strongly upward in the last 2 weeks, on speculation that the U.S. may legalize marijuana, as early as next year. We like the stock at this price and bought some this week. We expect it to be up 50% in the next 6 months.

Joe Cotton has won 3 National Stock Picking Contests with yearly percentage gains in excess of 96%. His 2020 Wall Street’s Best stock contest winner was Inovio Pharmaceuticals (Symbol INO) with a 742% 1-Year return.

This article is not investment advice, nor is it in any way to be construed as investment advice. For Investment Advice consult a Registered Investment Advisor or a Certified Financial Planner. Joe Cotton’s website is www.cottonstocks.net. NKY’s Joseph W Cotton is publisher of the market newsletter, Cotton’s Technically Speaking. He is a graduate of Xavier University, a former bank manager and credit analyst, and a former Fidelity Investments registered investment representative. Contact him at cottonstocks@hotmail.com

Related Posts

Leave a Comment