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I recently proclaimed 2019 the "year of CBD," and it seems from the mainstream coverage I'm starting to see, folks got the memo.
Early in 2018, Canopy Growth Corp. (NYSE: CGC) purchased Canadian hemp producer Green Hemp, and it also bought the assets of Ebbu LLC, a U.S.-based hemp company.
For 2019, Canopy is making even bigger moves in the cannabidiol market.
On Jan. 14, the Canadian company announced it received a license in New York to process and produce hemp. In what might be the largest hemp investment to date, Canopy will invest as much as $150 million in its New York operations to produce hemp extracts and hemp-based CBD products.
Not to be outdone, Aurora Cannabis Inc. (TSE: ACB) is also getting in on the action.
In May 2018, Aurora boosted its stake in Hempco to more than 50%. For more than 10 years, Hempco has been a pioneer in hemp-based foods. A few months later, it acquired Europe's largest hemp producer, AgroPro.
In the next few months, Aurora will unveil a plan to produce hemp-derived CBD products for the U.S. market, according to Business Insider.
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While this news is coming in at light speed, I can't say I was surprised; the passage of the Farm Bill effectively normalizes CBD across the country by making industrial hemp, a major source for CBD, legal on the federal level.
With these reforms, retailers nationwide can sell these products without fear of enforcement action by the government.
And now CBD is poised to break into one of television's biggest advertising venues.
That means selling CBD, from coast to coast, to the tune of billions of dollars in revenue for these companies, is the next order of business…
About the Author
Greg Miller started working on Wall Street in September, 1987, just a month before the “Black Monday” stock market crash.
During his career there, he became an expert in just about every kind of publicly traded security - from blue-chip and small-cap stocks to municipals, junk bonds, and derivatives. As a portfolio manager, Greg was responsible for over $500 million of assets in mutual funds and insurance company accounts.
After leaving the Street, he designed a successful options trading strategy and made lucrative tech investments for a financial publication. He has also helped develop new products and worked with other editors to hone their strategies. He’s always been dedicated to deep, fundamental research - and he always will be - because he believes buying the very best companies at the right price is the best way to amass wealth in the stock market.