Canada’s nationwide recreational marijuana market opened last October; last week, we got results from Canada’s two biggest marijuana companies that suggest the country’s marijuana market represents a massive opportunity.
The possibility of capturing billions of dollars in legal marijuana sales in Canada only hints at the larger opportunity associated with legalization of marijuana globally. If you think increasingly more countries will follow Canada’s lead, then it could be smart to buy shares in…
Canopy Growth(NYSE:CGC), Aurora Cannabis (NYSE:ACB), and Cronos Group (NASDAQ:CRON) in 2019.
The biggest marijuana company
Canopy Growth is Canada’s biggest marijuana company. A vertically integrated pot play, Canopy Growth grows marijuana in state-of-the art greenhouses, processes it using the latest in automated machinery, packages it, and sells it throughout Canada.
The company’s investments in growing capacity early on allowed it to capture over 30% of Canada’s medical marijuana market. Based on its latest quarterly results, leveraging its size and brand recognition is allowing it to capture at least as much market share in Canada’s emerging recreational market.
Last quarter, selling into every Canadian province’s adult-use market catapulted Canopy Growth’s revenue to 83 million Canadian dollars, up 282% from the same quarter last year. Last quarter only included about six weeks of recreational sales, and demand outstripped supply early on, crimping revenue. So there’s good reason to believe sales will head a lot higher.
Canopy Growth is also establishing itself in other countries that are breaking down barriers to marijuana; it has operations in…
Continue reading at THE MOTLEY FOOL
