CGC Stock: Is The Biggest Marijuana Stock A Buy As Top Rivals Merge?

Canadian pot producer Canopy Growth (CGC) faces greater competition from a potential merger between Aphria (APHA) and Tilray (TLRY). Does that make CGC stock a buy right now?




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CGC stock out of a consolidation in early November, after President-elect Joe Biden won the U.S. presidential election and raised investors’ hopes of nationwide pot legalization. But the company continues to make aggressive cost cuts.

Biden himself has expressed support for federal decriminalization of marijuana. Vice President-elect Kamala Harris has sponsored the MORE Act, a measure that would pull cannabis from the list of controlled substances, decriminalize the substance on a federal level but leave laws up to the states.

The MORE Act passed the House in December. But it has little hope in the Senate.

Full legalization could allow big Canadian pot producers to storm southward into what would be the world’s biggest legal market after struggles at home. And it would enable Canopy to fully activate the cannabis infrastructure it has been assembling in the U.S. for nearly two years.

The GOP could still hold onto the Senate, where two runoff elections in January will determine the precise makeup of the chamber. Republican control would likely narrow the road to reform. And some analysts have said investors shouldn’t get their hopes up for a Canadian rush into the states.

‘When, Not If’ For…

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Canadian pot producer Canopy Growth (CGC) faces greater competition from a potential merger between Aphria (APHA) and Tilray (TLRY). Does that make CGC stock a buy right now?




X



CGC stock out of a consolidation in early November, after President-elect Joe Biden won the U.S. presidential election and raised investors’ hopes of nationwide pot legalization. But the company continues to make aggressive cost cuts.

Biden himself has expressed support for federal decriminalization of marijuana. Vice President-elect Kamala Harris has sponsored the MORE Act, a measure that would pull cannabis from the list of controlled substances, decriminalize the substance on a federal level but leave laws up to the states.

The MORE Act passed the House in December. But it has little hope in the Senate.

Full legalization could allow big Canadian pot producers to storm southward into what would be the world’s biggest legal market after struggles at home. And it would enable Canopy to fully activate the cannabis infrastructure it has been assembling in the U.S. for nearly two years.

The GOP could still hold onto the Senate, where two runoff elections in January will determine the precise makeup of the chamber. Republican control would likely narrow the road to reform. And some analysts have said investors shouldn’t get their hopes up for a Canadian rush into the states.

‘When, Not If’ For…

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