Canopy Growth Corp. (TSE:CGC) Stock: How High Can It Go?

Canopy Growth Corp. (TSE:CGC) got more good news earlier this year

It’s been good to be a Canopy Growth Corp. (TSE:CGC) shareholder, especially during the last year.

Shares of Canada’s leading marijuana stock were languishing back in October 2015–stuck in a tight trading range for months and never really rising much above or below $2. Canada was in the midst of its most competitive federal election in years–a race that had huge consequence for the company.

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As the Liberals prevailed, the market reacted strongly. Legalizing marijuana for recreational use was a key part of the election platform. It would only be a matter of time until pot became legal. Shares quickly moved from below $2 to $3 each in just a couple of months.

Canopy got more good news earlier this year. Thanks to its growth and the strong demand from investors, it graduated from the TSX Venture Exchange to the big board. That precipitated another huge move upwards; the stock is up more than 73% since July 29, its first day of trading on the Toronto Stock Exchange.

And finally, the company is finally ready to roll out what could be a killer partnership. Rapper Snoop Dogg–who is an icon in the marijuana community–will lend his name to three different strains of Canopy’s Cannabis.

There’s a lot of good news surrounding Canopy. But, at the same time, investors must be careful to not fall for all the hype.

Be wary

There’s one big problem with Canopy–the same problem that plagues a lot of start-up companies in new industries.

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