CANOPY GROWTH

Analysis of Canopy Growth share price

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Among the most widely followed stock market stocks at the moment, there is of course the Canopy Growth group stock, which we will talk about in more detail here. In this article, we will indeed explain to you how to carry out relevant analyzes on this stock market title by getting to know this company better and by being able to analyze the graphical trends of this stock as well as possible. In particular, we will reveal some key figures concerning this group, the details of its activities as well as useful information about its competition and its strategic alliances. You will thus have all the cards in hand to carry out relevant analyzes of its live price according to the factors that directly or indirectly influence it.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, we would of course carefully monitor all the financial publications and announcements of this company as well as reports on its income and profitability.You will find all these detailed figures directly on the website of the Canopy Growth Company which transparently communicates various information to its investors.

Analysis N°2

All the buyout, acquisition, partnership and merger operations implemented by the Canopy Growth Group will of course be important and represent significant indicators to follow.There again you will find these news and events on the company’s website.

Analysis N°3

We would also of course follow any changes in regulations concerning the legalisation of recreational cannabis which would open new markets to Canopy Growth and enable it to generate supplementary income.

Analysis N°4

Finally, as we explained earlier, we would monitor the growth in the market share of this group’s competitor Aurora Cannabis together with its announcements, publications, financial results and important events which could directly influence the share price of Canopy Growth.

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General presentation of Canopy Growth

The Canadian group Canopy Growth is a specialist in the production and sale of medical cannabis.This company in facts markets different products from the culture of medical cannabis such as oils and concentrates as well as capsules and hemp.

The products sold by Canopy Growth have the main objective of naturally treating chronic pain associated with certain illnesses, treating convulsions or muscular spasms and other health problems such as nausea or lack of appetite.

This company was created in 2009 at Smith Falls in Canada and is now a large scale business with a number of subsidiaries among which we find for example Canopy Health Innovations, Mettrum Health Corporation, BC Tweed Joint Venture, Spot Therapeutics, HEMPCA, Tokyo Smoke, Annabis Medical, Spectrum Cannabis Chile, Spectrum Chile, Tweed, Bedrocan Cannabis Corp, Daddy Can Lesotho PTY, Spectrum Cannabis Denmark, Prime1 Construction Services, Tweed Farms, Vert Medical, Canopy LATAM, MedCann Gmbh, Trees Producers Limited and Tweed Grasslands Cannabis Inc.Through all these subsidiaries Canopy Growth employs over 1,030 people around the world.

The Canopy Growth group is also known as being the first company in this activity sector in North America to have been introduced onto the stock markets.This group is in fact included in the S&P/TSX stock market index.

Analysis of Canopy Growth share price
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The major competitors of Canopy Growth

The Canadian group Canopy Growth is undoubtedly one of the rarest companies of this size exercising activities in the therapeutic cannabis sector. However, it is not the only company to target this new market sector and the legalisation of this type of treatment is increasing in range progressively throughout the world.The competitors of Canopy Growth are few at present but it is important you know about them if you wish to speculate in this asset on the stock markets.

 

Tilray Inc. 

This is another Canadian company that is currently achieving great success in the medical and therapeutic cannabis sectors and which is also developing a range of products manufactured from hemp. It is therefore recommended that you take this company into account when analysing the competitors of the Canopy Growth Company.


The major partners of Canopy Growth

Over the last few years the Canopy Growth Company has heavily invested in the implementation of strategic partnerships with various companies in similar or complementary sectors.This has enabled the company to enlarge its field of activities as well as gain position in new markets and highly advantageous contracts.To better understand the benefits of this type of alliance we offer you the opportunity to learn about some of the more recent ones here together with their objectives.

Alcaliber

In September 2017, Canopy Growth completed a strategic alliance with the Spanish company Alcaliber authorising the latter to produce cannabis cultivars supplied by the Canadian company to sell in their country.In 2018 the first delivery of 1,500 of these cannabis plant clones was completed between the two companies.

Société des alcools du Québec

In April 2018, Canopy Growth signed a partnership agreement with the company Société des alcools du Québec relating to a three year supply agreement for over 12,000 kg of high quality cannabis.This alliance came about just after the province of Quebec issued an announcement of the forthcoming legalisation of recreational cannabis in the country.

Centric Health

Finally, more recently, in September 2018 to be more exact, Canopy Growth implemented a strategic partnership with the company Centric Health relating to supply and services.This contract related to the supply of medical cannabis from Canopy Growth to Centric Health.Canopy Growth, through its brand Spectrum Cannabis, would thereby become the favoured partner in terms of training and the major supplier to this health company for a variety of products related to the culture of medical cannabis.These products would then be used in long term health care or in care homes for the elderly.

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The factors in favour of a rise in the Canopy Growth share price:
  • Firstly, the position of Canopy Growth on the therapeutic cannabis market is undoubtedly one of its major advantages.Let us remember that this group is in fact in second position of this market worldwide just behind its principal competitor Aurora Cannabis.
  • The weak level of competition in this activity sector is a second strong point for the Canopy Growth group as the small producers which are the most numerous do not represent a serious threat to this much larger company.
  • The eagerness of Canopy Growth to diversify its activities by positioning itself in advance in the recreational cannabis sector is also a major advantage that should enable it to considerably increase its revenue in the coming years as many countries and areas, including Quebec, seem eager to embrace the legalisation of this type of product.
  • We also appreciate the efforts made by this company in order to gain parts of the market and widen its activities throughout the world.This notably takes place through the implementation of targeted partnerships and strategic alliances notably in Europe.
  • Finally, the group management demonstrates a real transparency regarding its development and growth strategies implemented and communicated clearly relating to its objectives.This has of course had the effect of reassuring investors and shareholders.
The factors in favour of a drop in the Canopy Growth share price:
  • Firstly, even though the future development prospects of this company’s activities appear attractive it should be noted that the financial results of Canopy Growth are up to now unsatisfactory, in fact the company is running more at a loss.Of course, this is seen as a temporary situation due to the strategies implemented by this company and this should be rapidly overcome.However, it does have the consequence of worrying a certain part of the market as long as positive results are not seen.
  • On the other hand it should be remembered that the medical cannabis market, like that of the recreational cannabis, is subject to regulations that vary according to the different countries.These regulations can be a real setback to the activities of Canopy Growth and its future profitability.It is therefore important to monitor events and news.
  • Finally, the recent development of activities of the major competitor of Canopy Growth, Aurora Cannabis, following the buyout of Cannimed, represents of course a significant threat to the previous market leader which has seen it lose its number one position in the cannabis sector worldwide.Over the long term this could negatively affect sales and the signature of large new contracts.

To summarise, even if the disadvantages of the Canopy Growth Company appear less numerous than the advantages it is still necessary for every serious investor to take them into account when completing analyses and not just launch a buying strategy without reflection.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Where is the Canopy Growth share price quoted?

The Canopy Growth share price, like that of other securities in this sector of activity in Canada, is listed on the Toronto Stock Exchange or Toronto Stock Exchange also called TSX. This stock exchange is now the largest Canadian stock market and the second in North America just after the American NYSE. It is also the ninth in the world in terms of market capitalization. It is also a division of the TMX group specializing in share exchanges.

What are Canopy Growth's latest acquisitions?

Canopy Growth acquired Kiku Brands which operates the Tokyo Smoke brand in July 2018 for C $ 298 million. In April 2019, Canopy Growth also acquired the American company Acreage Holdings, which specializes in the production and distribution of cannabis, for $ 3.4 billion. Finally, in the same year, Canopy also acquired This Works for US $ 55 million in order to diversify into CBD beauty and sleep aid products.

What is the total market capitalization of the Canopy Growth group?

To date, in May 2020, the total market capitalization of the Canopy Growth group reached 10483 million Canadian dollars. It should also be noted that the group published for the year 2019 a turnover of 253 million Canadian dollars and a net profit of nearly 685 million Canadian dollars.

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