Canopy Has A Solid Business Model With Tremendous Growth Potential When Canada Opens Up The Market For Recreational Marijuana Use.

If you buy shares of Canopy Growth, for example, you’ll buy a piece of a business that grows and markets medical marijuana in Canada. At the end of 2016, Canopy Growth owned property, plant, and equipment worth nearly $61 million and had cash and cash equivalents totaling close to $93 million. The company generated revenue of $25.2 million in the last nine months of last year, with earnings totaling $4.5 million. Canopy has a solid business model with tremendous growth potential when Canada opens up the market for recreational marijuana use. On the other hand, the stock’s market cap stands well above $1 billion. That’s a sky-high valuation based on Canopy Growth’s current revenue and earnings. Investors are clearly expecting massive earnings growth in the future. Whether or not that level of growth is Marijuana Stocks attainable is key for determining if Canopy Growth is a good stock to buy.  Some have no doubt bought marijuana stocks simply because they’ve gone up in price quickly. Remember, though, that what goes up can come down.

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