This Stock is Poised for Massive Upside Potential

As I’ve mentioned numerous times by now, Canada is right at the doorstep of becoming the first G7 nation where the use of recreational cannabis is legalized for the entire country.

I can’t emphasize enough how big this is.

In fact, the recreational marijuana market in Canada could be valued at anywhere between $5 billion and $10 billion per year.

The company that I’ll be talking about today is one that I first recommended to my Nova-X Report readers way back in 2016.

The company has recently gone through some exciting developments and can take advantage of the massive potential of the marijuana market.

You see, on May 24, the company uplisted, and its shares are currently trading on the New York Stock Exchange, in addition to trading on the Toronto Stock Exchange.

Here’s why this move will maximize this stock’s profit potential.

You see, uplisting will benefit the stock’s price, liquidity, and potential appreciation.

First, by moving up to stronger and more recognizable exchanges, the stock will broaden its available shareholder base.

Second, the exchanges and market participants are more likely to offer greater liquidity and price discovery and be more active in supporting and trading the stock.

So let’s take a look at this Canadian pot stock and its potential for massive gains…

Canada’s Biggest Grower… Keeps On Growing
Canopy Growth Corp. (NYSE: CGC) is the biggest cannabis grower in Canada and has been expanding its capacity.

In fact, it’s poised to be one of the major global players in the industry as marijuana legalization spreads to more countries.

In addition to exposure in the blossoming Canadian market, Canopy already has agreements to export products to Germany, Australia, Spain, Denmark, Jamaica, Chile, and Brazil.

What’s more, one of Canopy’s investors is alcoholic giant Constellation Brands Inc. (NYSE: STZ), with a 9.9% stake in the company. That stake is worth a cool $191 million, and Constellation will have the option of purchasing additional stakes in the future.

It’s no coincidence that Constellation, which has a strong presence in California, made its move just months ahead of the state’s full legalization of marijuana.

Over the past year, Canopy has put more emphasis on its cannabis-oils products, as well, citing the higher profit margins of oils in its September quarter earnings report. Sales from oils increased 107% year over year, and the segment’s contribution to overall revenue rose from 14% to 18%.

The Brightfield Group estimates the global marijuana market will reach $31.4 billion by 2021. Should Canopy get 5% of the global cannabis market, it will grow sales by 250%.

Now, let’s take a look at what the stock currently looks like.

Two Exchanges, Plenty of Gains
Canopy is looking strong by closing above its initial New York Stock Exchange listing high once more. Though the cannabis sector isn’t yet fully on the same page, it can be comforted by the fact that Canopy, as its undisputed sector leader, continues to attract investors.

Shares of Canopy’s WEED on the Toronto Stock Exchange gapped up to $40 per share before retreating 15.76% over the next two-plus sessions as profit takers gained control.

Today is the second time Canopy Growth has breached $40 per share on a closing basis. On June 6, which was the day before Canada’s historic Bill C-45 vote was scheduled to take place, WEED finished at $40.68 per share after investors ran up prices in the sector in anticipation of a successful third reading vote.

Having accomplished that, the sector sold off around 8% over the next four days as a main underlying catalyst had been vanquished from the market.

Now that Canopy Growth has round tripped from sub-$34 and back – closing up $1.26 to $40.65 per share – investors have gotten past most of their recent post-legalization sell-off fears.

In fact, WEED closed just $0.03 shy of establishing a new post-NYSE closing high, meaning it can essentially set its sights on $41.40 and $44, which are the post-NYSE intraday high and all-time high, respectively.

Canopy’s seemingly uncontrollable appetite shouldn’t surprise anyone who is following the company. Last week, the company raised $500 million Canadian via convertible note offering, which was the largest ever in the cannabis space. The offering was upsized 25% from the previously $400 million Canadian aggregate principal amount announced just two days prior.

Endless Profit Opportunity for Just About Anyone
If you want to make a profit on the booming cannabis sector, then I suggest jumping onboard Canopy, where the opportunities and gains are seemingly endless.

— Michael A. Robinson

Source: Money Morning