Canopy Growth Tackles Davos as CEO Delivers Insights Into Medical Cannabis Hemp Industry and Moves Into Europe
Canopy Growth (TSX:WEED) (NYSE:CGC) CEO met with the global elite at the World Economic Forum in Davos, Switzerland, part of the Canada Cannabis House panel of speakers that included Acreage Holdings, Richard Carleton of the Canadian Securities Exchange, and Saul Kaye of CannaTech Global.
As part of the globalization efforts by the company, Canopy Growth is making its move overseas. The company recently made headlines when management announced moves into the U.K. and Poland with their Spectrum Cannabis subsidiary. CGC Management outlined a deal with U.K. based Oxford research-company Beckley Canopy Therapeutics.
Under the terms of the deal, Canopy Growth formed Spectrum Biomedical UK. The new company will supply the continent with standardized medical cannabis therapies.
Speakers on the cannabis panel agreed that medical cannabis is where the real money is. Canopy Growth CEO went on to say, it’s because “medical marijuana will create a better product.”
Piper Jaffray issued new targets for the stock; $60.00/share (previously $40.00/share).
Canopy Growth (CGC) Technically Speaking
Canopy CGC has been consolidating its recent gains in a tight range. The upgrade caused shorts to cover this morning in the early session, as the stock trades (+5.63%) near 47.00 (+/-). At current levels (47%) it would take five (5) days for shorts to cover.
Volume is beginning to pick up and should help turn the momentum more bullish in the short-term. RSI remains above 50, which tells us the current bullish trend should continue.
Bollinger bands are tight, suggesting this is the beginning of an increase in volatility for CGC.
We will add to our positions if CGC pulls in a little this morning or flags briefly. Remember the stock was heavily shorted going into this upgrade. Data here:
In other news, Intel (INTC) reported earnings last night. The stock is trading down (6.25%). WDC, SBUX, MU are all higher in early trading. SBUX reported better than expected guidance and WDC caught an upgrade from RBC.
Chip stocks: AMAT, AMD, ASML, LRCX, and XLNX are holding recent gains.
Futures are higher, with S&P 500 futures up +21 handles. (2655.11)
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Happy Trading,
Vinny
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