It has been a good news week for pot stocks — especially Canopy Growth (NYSE:CGC) stock. The Ontario-based company now has deals with both stars of VH1’s unlikely cooking show, “Martha & Snoop’s Potluck Dinner Party.”
Snoop Dogg has long been the face of one of Canopy’s cannabis brands, “Leafs by Snoop.” Now Martha Stewart is getting in on the action. She’ll be advising Canopy on its cannabidiol (CBD) product line-up, starting with ones for “people’s beloved pets.”
CGC Stock Grows as Legalization Marches On
Down in Martha’s home state of New York, legislators have been (slowly but surely) moving toward legalization, possibly by April.
Vermont and New Hampshire, however, may have them beat. Democrats in both states are poised to pass new legal-weed bills this week. The question is whether they’ve got the votes to override their Republican governors’ veto.
The proximity to Canada — and its thriving cannabis industry — is intriguing. However, even if the border states legalize, there’s one big hurdle: the Feds.
U.S. Customs and Border Patrol (CBP) has made it very clear that it does not share Canada’s tolerance for cannabis. And that extends beyond simple possession. Last fall, CBP advised that “if a traveler is found to be coming to the U.S. for reason related to the cannabis industry, they may be deemed inadmissible.”
In this environment, Canopy Growth stock is probably the best play thanks to its partnership with Constellation Brands (NYSE:STZ), which is based in upstate New York.
Even before full legalization takes hold, hemp is fair game. And Constellation is already New York-licensed to produce and process hemp, a key source of non-psychoactive CBD.
With its unique foothold in the emerging U.S. cannabis industry, no wonder investors seem to be flocking to Canopy Growth. In a tough week for the rest of the market, CGC stock has been powering higher nonetheless — up over 4.5% at one point on Thursday alone.
As of this writing, Ashley Magnifico did not hold a position in any of the aforementioned securities.
