FYI>>NOT A PENNY STOCK,BUT.... This Alcohol Gia
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Posted On: 11/20/2017 10:27:58 AM
FYI>>NOT A PENNY STOCK,BUT....
This Alcohol Giant Just Made a Huge Bet in Our Favor
Posted On Nov 2, 2017 By Ray Blanco
Alcoholic beverage giant Constellation Brands announced that it was paying C$245 million to acquire a 9.9% stake in Canopy Growth Corp. (OTC: TWMJF).
Constellation is one of the biggest companies in the booze business. It owns brands like Corona beer, Svedka vodka and Robert Mondavi wines. It’s also one of the most forward thinking — the firm’s billion-dollar acquisition of craft brewer Ballast Point was a major coup for the fast-growing craft beer industry.
And now Constellation is doing it again with weed.
“In our view, it highlights the value of scale and brand recognition — and validates our thesis that Big Alcohol, Big Pharma and Big Tobacco are going to look to acquire leading companies in the sector,” said Beacon Securities analyst Vahan Ajamian in a research note following the deal.
We agree, of course.
But when Wall Street starts paying attention, gains follow.
Of course, we’re also big fans of Canopy Growth. It’s one of our recent buys — and it got a 25% shot in the arm following the announcement of the deal. Other Canadian pot stocks are getting bid higher too. As we talked about last week, pot’s federally legal status in Canada makes it a perfect acquisition opportunity for large U.S. firms concerned about running afoul of U.S. federal law.
Meanwhile, there’s ample upside ahead.
As part of its deal, Constellation also received the option to raise its stake in Canopy to just under 20%.
If that happens, odds are we’ll be sitting on some massive gains on our TWMJF position.
In the meantime, Constellation’s big bet on Canopy Growth just effectively gave other mainstream U.S. companies the green light to invest in cannabis. This could be the start of a buying spree as the biggest names in related industries try to avoid being left out when legalization ultimately happens at a federal level here at home.
In other words, we’re on the ground floor of something big.
Even better, we’re profiting from the news by being in Canopy before the announcement hit.
(An excerpt from my pot advvisor)Just FYI ....POTN is also a good looking into the future buy @.10 up from .07 recently
This Alcohol Giant Just Made a Huge Bet in Our Favor
Posted On Nov 2, 2017 By Ray Blanco
Alcoholic beverage giant Constellation Brands announced that it was paying C$245 million to acquire a 9.9% stake in Canopy Growth Corp. (OTC: TWMJF).
Constellation is one of the biggest companies in the booze business. It owns brands like Corona beer, Svedka vodka and Robert Mondavi wines. It’s also one of the most forward thinking — the firm’s billion-dollar acquisition of craft brewer Ballast Point was a major coup for the fast-growing craft beer industry.
And now Constellation is doing it again with weed.
“In our view, it highlights the value of scale and brand recognition — and validates our thesis that Big Alcohol, Big Pharma and Big Tobacco are going to look to acquire leading companies in the sector,” said Beacon Securities analyst Vahan Ajamian in a research note following the deal.
We agree, of course.
But when Wall Street starts paying attention, gains follow.
Of course, we’re also big fans of Canopy Growth. It’s one of our recent buys — and it got a 25% shot in the arm following the announcement of the deal. Other Canadian pot stocks are getting bid higher too. As we talked about last week, pot’s federally legal status in Canada makes it a perfect acquisition opportunity for large U.S. firms concerned about running afoul of U.S. federal law.
Meanwhile, there’s ample upside ahead.
As part of its deal, Constellation also received the option to raise its stake in Canopy to just under 20%.
If that happens, odds are we’ll be sitting on some massive gains on our TWMJF position.
In the meantime, Constellation’s big bet on Canopy Growth just effectively gave other mainstream U.S. companies the green light to invest in cannabis. This could be the start of a buying spree as the biggest names in related industries try to avoid being left out when legalization ultimately happens at a federal level here at home.
In other words, we’re on the ground floor of something big.
Even better, we’re profiting from the news by being in Canopy before the announcement hit.
(An excerpt from my pot advvisor)Just FYI ....POTN is also a good looking into the future buy @.10 up from .07 recently
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