Canopy Growth Corp. (OTCMKTS: TWMJF) Experiences A Pullback

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The cannabis market could go higher, and Canopy Growth Corp. (OTCMKTS: TWMJF) is one stock that could continue running. Now, after Trump’s election win, many thought the cannabis industry would be doomed. However, we all know that wasn’t the case. Rather, the industry has been thriving and some companies are emerging as strong potential growth candidates.

 

TWMJF is one of the world’s leading diversified cannabis companies. The company operates a collection of diverse brands, as well as curated strain varieties. The company operates over 500M square feet of indoor and greenhouse production capacity. Canopy Growth’s brands include Tweed, Bedrocan and Mettrum.

 

Canopy Growth trades on the Toronto Stock Exchange and on OTC Pink, and it could potentially grow its business if and when people become more receptive of cannabis as a medicine. Canopy Growth’s brand Tweed is one of the most recognized cannabis production brands in the world. Tweed has built a large and loyal user base, by focusing on high-quality products and customer relationships. Now, if countries and states relax marijuana laws, Tweed could expand its position across the globe.

 

Another core brand is Bedrocan, which is the epitome of medical-grade cannabis. Bedrocan BV pioneered medicinal marijuana in Holland through decades of experience of selecting and refining cannabis. The results here are whole bud cannabis strains that patients could rely on. Bedrocan Canada supplies these standardized strains to the Canadian market through exclusive licensing rights to American continents.

 

Canopy Growth’s third core brand is Mettrum. Mettrum has a unique color-based strength and dosage system, known as the Mettrum Spectrum. Mettrum is one of the leading natural health brands in the Canadian medical marijuana market.

 

On Feb. 14, 2017, Canopy Growth reported its 3QFY2017 financial results and it grew its revenue by double digits. The company had over 29K registered patients by Dec. 31, 2016, compared to just 8K on Dec. 31, 2015. That’s over a 260% increase year over year. Consequently, the company grew its revenues to $9.8M, which was a 15% increase from 2QFY17 and over a 175% increase from 3QFY2016. Moreover, the company was able to become profitable and reported net income of $3M, compared to a net loss of $3.3M for the same quarter in the previous fiscal year.

 

Bruce Linton, Chairman and CEO of Canopy Growth, stated, “The third quarter provided new opportunities and challenges for our business, with demand largely exceeding supply throughout the quarter…“A function of our growing patient base, the time required to move from a record harvest to sale, and an extensive phenotyping exercise to establish breeding stock and further elevate our product offering all resulted in constrained product available for sale during the quarter. The successful late-quarter harvest of the Tweed Farms facility running at full capacity has begun to ease supply constraints while at the same time we have introduced a new diversity of product into our online store under the Tweed, Leafs By Snoop and DNA Genetics banners, driving strong sales this month.”

 

Linton also stated, “The recent release of our first wave of new genetics and Tweed Farms product resulted in one million dollars of store sales in a single day, on February 1. That is a major milestone for Canopy. Two years ago, we had our first million dollar quarter, a year ago we had our first million dollar month, and now we have had our first million dollar day. It’s definitely trending well.”

 

With that in mind, TWMJF is currently trading at a valuation of $1.27B, as of March 8, 2017 and the stock was up 13.78% YTD. Moreover, TWMJF had been up over 250% over the past year, and we could see it run higher with the changing developments in the legal Canadian cannabis industry. If you want to stay up to date on TWMJF be sure to sign up to our newsletter below, it’s free at the moment however we may decide to change our memberships to a paid service soon!

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