For a long time, Canopy Growth Corp has been seen as the largest marijuana stock to be listed. Even by market cap, it is the largest marijuana stock. It is also one of the most recognized marijuana brand in the industry. More investors are opting for it thanks to its positive projections of the future. This makes it more reason for us to check it out and see what more good can you get from the Canopy Growth stock.
The stock has a massive medical following
As much as there are more people who want the recreational marijuana, it is good to note that the majority want medical marijuana. There is no way to overlook the registered medical patients that the brand boasts of having. These medical marijuana patients are the ones who can help with yielding better margins for the growers. It is the reason you find that Canopy’s softgel capsules being popular.
Has a global footprint and growing
There is no doubt you would get more people opting for it since it has grown to be known globally. With more product diversity, the brand has been able to appeal to many markets worldwide. The brand is known for having diverse product and thus commonly opted for whenever they need their products. Such products include oils, edibles, infused beverages, concentrates, and vaporizer cartridges. As you can see, this makes it easy for a person to get what he needs under one brand.
The average selling price per gram is climbing
Having more sales is what drives the brand to be better and diverse. Even with the low prices, the brand was still making good money. The good news is that the economies of scale are also working in its favor. This is because the average price per gram is now increasing. This means that the brand will be able to earn more from its sells. So long as it keeps on delivering alternate and high quality products from its competitors, it is bound to have a higher average price per gram.
The brand has revenue diversification options
The brand is always looking to grow and stand out as being one of the best in the market. To do so, diversification of its revenue is definitely important. We get that the brand has acquired the Canopy Health Innovations. As you can see, other than selling the cannabis for medical and recreational, it is branding into other markets to make its position stronger. Even with the clinical trials, they are bound to help the company get more sources of revenue.
The company has substantial provincial commitments
This is something else that drives more people to invest in the canopy growth stock. It is now possible for the growers to secure the long term supply agreements far better than before. In the first quarter report, Canopy was able to deliver impressive amount of cannabis to British Columbia and Alberta. This is a commitment that the brand has always tried to ensure it happened well,
Financing is no longer an issue for Canopy Growth
The brand has now grown to a point that financing is no longer a major hurdle for them. The brand is even able to acquire the different rivals to expands its market reach. As a result, those investing in the company stock know that it will be able to remain delivering on good performance over a long period of time.