Yesterday, almost every mainstream financial media network reported on Constellation Brands’ (STZ: NYSE) investment in Canopy Growth Corp. (WEED.TO) (TWMJF).
From CNBC to Forbes, Bloomberg to CNN, this investment was one of the main highlights of the day.
Big Alcohol Enters the Legal Cannabis Industry
Constellation Brands is an international producer and marketer of beer, wine and spirits. Constellation is one of the largest beer importer by revenue and this investment has the investing world on notice.
Big alcohol fears the impact that legal marijuana will have its long-term growth and we expect to see more investments like this over the next year.
We remain bullish on the Canadian cannabis sector and believe that the sectors offer access to some of the best long-term investment opportunities.
Constellation’s Investment…Noting Short of a Game Changer
This investment isn’t big…it is MASSIVE. A game changer. A catalyst for the entire cannabis sector.
Constellation Brands’ investment in Canopy provides a level of legitimacy to a burgeoning industry that faces undeserved scrutiny. The legal marijuana industry is the fastest growing industry in the world and it is barely in the first inning of a multi-decade growth cycle.
Canopy Growth is the largest and most diversified legal marijuana producer and they are the first cannabis company to receive an investment of this nature. We expect to see more investments like this and expect Canada to be the main beneficiary of this new investment cycle.
A Once in a Lifetime Opportunity
Major financial institutions in the United States are still on the sidelines with the legal cannabis industry and we do not expect this situation to change in the near-term.
The absence of financial institutions has provided investors with a rare opportunity and we recommend taking advantage of this situations. Some companies that investors should keep an eye on include: Aurora Cannabis (ACB.TO) (ACBFF), Aphria (APH.TO) (APHQF), MedReleaf (LEAF.TO) (MEDFF), Organigram Holdings (OGI.V) (OGRMF), CannTrust Holdings (TRST.CN), Supreme Pharmaceuticals (FIRE.V) (SPRWF), Cronos (MJN.V) (PRMCF), Emblem (EMC.V) (EMMBF), WeedMD (WMD.V), Invictus MD Strategies (IMH.V) (IVITF), and CanniMed Therapeutics (CMED.TO) (CMMDF).
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