The shares of Canopy Growth rose 19% on Monday October 30th on the news that Constellation Brands was taking a 9.9% ownership stake however at one point in the day the gain was 22.9% … and how about a 3 digit one day ROI on select Canopy Growth Call Options? A yield of dreams.
Remember, WEED is not some penny play being pumped by promoters but rather a TSX listed company with a market cap of over $2-billion. Noteworthy was the decision to make the announcement through main stream media rather than paid third party marketing channels and stock promoters – evidence that facets of the industry and its top players are maturing and perhaps could be the first sign that the era of paid promotors skewing the information to Retail Investors within the Canadian industry may also be coming to an end.
Ironically, I wrote a second case study at that same time and that case was on the Tinley Beverage Company (CSE:TNY; OTC:) and like WEED I have frequently revisited TNY including a recent follow up case study. TNY’s share price also rose on October 30th as a result of a validation of the potential market and therefore the profitability associated with cannabis infused beverages. TNY having first mover advantage is certainly one to watch. Since that first case study shares of TNY rose from $0.04 to a high of $0.67 before retreating back into the $0.20 on the heels of a private placement financing. TNY shares closed on October 31st at $0.39 representing a two day gain of 30%. At time of writing, the upward trend was continuing. Their business model was there all along and so was CannaInvestor Magazine regardless of the hills and valleys of the share price.
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