- Canopy Growth Corporation’s stock price has risen from the lows in a busy week.
- Further speculation about its leadership may affect the stock price.
- The marijuana sector awaits legislative developments in Washington.
Canopy Growth Corporation (NYSE: CGC) is kicking off the last week of November at a share price of $18.41, as per the close on Friday, substantially better than the previous week’s close and the November 18 trough of $14.22.
The Smiths Falls, Ontario based firm has been enjoying the high tide affecting the cannabis sector in addition to its massive, $2.7 billion war chest. Contrary to other companies such as Aurora Cannabis (ACB), CGC’s finances play in its favor.
That may help it top the $20 per share mark that it topped in early November during the short Thanksgiving week.
Canopy Growth Corporation Stock Developments
CGC has been struggling with multiple issues.
The firm led by Mark Zekulin – who is just in an interim capacity – has reported a worrying decline of 15% in revenues to $77 million, and an uninspiring increase of 2% in cannabis sales in its fiscal 2020 quarter.
Zekulin has announced that he will leave Canopy, perhaps by the end of the year. The earlier departure of Bruce Linton, one of its founders, may have left a void in CGC’s leadership and weighed on its growth prospects.
Investing in Marijuana Stocks
Pot stocks such CGC have been on the rise in the past week as the US House Judiciary Committee voted in favor of promoting the MORE Act that sets a pathway for legalizing marijuana at the federal level. Canadian weed stocks have made inroads in the US, via states where cannabis is legal. However, changing legislation for the whole of the world ´s largest economy is already a game-changer.
It is still unclear if the Senate would take up the bill as majority leader Mitch McConnell, a Republican from Kentucky, is a lifelong opponent of legalizing marijuana. However, the veteran politician met with executives of cannabis companies.
Once the dust settles from the political headlines, CGC’s price will likely move in response to company-related news rather than the broader cannabis sector.
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