One area of the market that has been the undisputed champion in recent action is anything related to cannabis. This includes two different but highly intertwined phenomena: CBD and Marijuana. Both have been exploding higher.
Today, we are going to look at three stocks that represent different opportunities in this space right now: Canopy Growth Corp (NYSE:CGC), GOLDEN DEVELOPING SOLUTIONS ORD (OTCMKTS:DVLP), and CV Sciences Inc (OTCMKTS:CVSI).
Canopy Growth Corp (NYSE:CGC) shares have been soaring higher in recent action, launched by a very high-profile strategic investment expansion by Constellation Brands (STZ) (NYSE: STZ.B) last month.
Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. The company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names.
It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation is headquartered in Smiths Falls, Canada.
Shares have been on the move, powering as much as 115% higher in the past month on a huge increase in trading volume. Investors and traders are reacting to a combination of increasing market attention following the STZ investment and massive growth expectations touted by many leading analysts for the space.
GOLDEN DEVELOPING SOLUTIONS ORD (OTCMKTS:DVLP) is a more undiscovered pick that may ultimately represent more potential upside for new money flows into the cannabis complex given the lack of a crowd of speculators already in the name.
The company frames itself as a company that is developing an online retail business for cannabidiol (CBD), hemp oil and health/wellness-related products.
Through the website of its wholly owned subsidiary, Pura Vida Vitamins (www.PuraVidaVitamins.com), as well as through wholesale and distribution channels, the company offers a broad range of high-quality, price-competitive products, including traditional vitamins, supplements, and CBD-based tinctures, vapes and soft gels, among other products. Merchandise also includes hemp and CBD-related products and additional products focusing on health and lifestyle.
Golden Developing Solutions is a development-stage company providing business services and/or products supporting the cannabis industry, in which company intends to make acquisitions in the near future. Currently, 29 states and the District of Columbia have passed laws permitting their citizens to use cannabis for medical and/or recreational purposes. Cannabis has shown encouraging signs as a treatment for various medical conditions and has become increasingly more acceptable to the public and society.
Shares of the stock have been trending higher. As noted above, this may be a more explosive stock over coming days and weeks simply because it is much less well known at this point and still open to being discovered by the crowd. But liquidity is clearly picking up and we could see some powerful movement ahead.
The company has been making huge strides in the process of sparking a transition into commercial stage operations and recent press suggests initial sales growth is nearing.
CV Sciences Inc (OTCMKTS:CVSI) is a household name in the CBD space at this point. Like DVLP above, this is a company that is specializing in the fast-growing CBD products marketplace.
The company bills itself as a life science company, focuses on developing and commercializing novel therapeutics utilizing synthetic Cannabidiol (CBD).
CVSI operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD; and, a consumer product division in manufacturing, marketing and selling plant-based CBD products to a range of market sectors, including nutraceutical, beauty care, specialty foods, and vape.
Following the CanX Acquisition in December 2015, CV Sciences commenced its preclinical drug development program during the second quarter of 2016. The Company’s drug development efforts include pursuing synthetic-based Cannabidiol drug candidates in areas that have the potential to provide significant improvements in therapeutic patient treatments with sizable addressable markets.
The company was formerly known as CannaVEST Corp. and changed its name to CV Sciences, Inc. in January 2016. CV Sciences, Inc. has primary offices and facilities in Las Vegas, Nevada and San Diego, California.
Shares have been seeing dramatic money flows, powering from $0.50/share to over $9/share in under 4 months earlier this year. Recently, we have seen a dip as Citron Research sparked some legal questions around the company’s IP.
Ultimately, some of those questions will need to be resolved for the stock in order to see a renewed climb. But no one doubts the power of the fundamental trend in CBD products that it has been riding.