Sign up Australia
Proactive Investors - Run By Investors For Investors

Constellation Brands' stake in weed firm Canopy Growth paying off

Cannabis is a buzz topic in Canada currently. Last month Canada passed a law legalising the recreational use of marijuana
Constellation Brands' stake in weed firm Canopy Growth paying off
Constellation is seeing good growth from Canopy stake

Canada-listed cannabis firm Canopy Growth Corp (TSE:WEED) certainly seems to be a growth driver at Corona beer owner Constellation Brands Inc (NYSE:STZ).

The firm, which also owns Svedka vodka, said it had recognised gains of more than US$700mln since it invested in the weed giant in  October 2017.

Cannabis is the buzz topic in  Canada at the moment and last month saw it pass a law legalising the recreational use of marijuana- the second country on the planet to do so after Uruguay.

Legal standing

Pot is legal for medicinal purposes in 14 European countries -  Israel, Argentina, Puerto Rico, Panama, Mexico, Turkey, Zambia and Zimbabwe.

And in the huge USA market, medicinal use is allowed in 29 states and the District of Columbia. Nine states have legalised both medical and personal cannabis use.

Constellation took a 9.9% stake in Canopy Growth last October - a move, which analysts said was a clever one..

Canopy Growth shares are up nearly five times' in the last 12 months, gaining 378%.

On Friday, Constellation posted first-quarter numbers, which saw profit lagging estimates

Adjusted per-share earnings for the three months were US$2.02, below consensus of US$2.44 per share.

Today, Constellation Brands Inc shares were down 0.73% to stand at US$217.28 each.

Join our Crypto, Blockchain and Cannabis Telegram group here
View full STZ profile View Profile

Constellation Brands Timeline

Related Articles

cake
April 17 2018
The group's major shareholders have staunchly supported the business while the AIM-listed group sorts out its financial position

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use