Marijuana Stock Investing Goes "Big Time"
![Marijuana Stock Investing Goes "Big Time"](https://assets2.sharewise.com/attachment/file/86672/open-uri20171111-9272-1ox4nx4 "Marijuana Stock Investing Goes "Big Time"")
A big knock against investing in marijuana stocks has been valuation. However, the decision by Constellation Brands (NYSE: STZ) to pay up for a 10% stake in Canopy Growth (NASDAQOTH: TWMJF) suggests share prices for marijuana stocks may not be as crazy as they seem. Is it too late to buy these stocks, or is it just getting interesting?
Canopy Growth is Canada's largest marijuana stock by market cap and trades for more than 20 times its sales over the past 12 months. Even so, the wine, beer, and spirits Goliath, Constellation Brands, forked out $245 million Canadian to get its hands on nearly a 10% equity ownership stake. It also acquired warrants that can allow it to buy up even more shares in Canopy Growth in the future.
IMAGE SOURCE: GETTY IMAGES.
Source: Fool.com
