Canopy Growth Is a Worthy But Cautious Cannabis Play

I don’t believe it’s a stretch in the slightest to say that when the Associated Press declared Joe Biden the winner of the 2020 presidential race, more than a few people lit up doobies to celebrate. Did they inhale? In terms of Canopy Growth Corp. (NYSE:CGC) and those holding CGC stock, they likely exhaled.

Source: Shutterstock

You see, in a market fueled by unprecedented growth — hothouse growth, if you like — this Canadian company has just begun to see daylight after a rough run in 2019 and much of 2020. The upward action started on Oct. 2 and aided by the tailwind of a Biden election victory, CGC stock has shot up by more than two-thirds, trading now at $24.77.

What remains to be seen, however, is whether Canopy has once and for all shed the troubles that have dogged it. Co-founder and co-CEO Bruce Linton was forced out in July 2019 in the wake of losses and light revenue. Canada’s cannabis market (which I like to call the “Cannadabis”) also proved…