Up 214% in 1 Month, Should You Buy Canopy Growth Stock Right Now?
Canopy Growth's (NASDAQ: CGC) stock is on fire, with its shares gaining 214% in the last 30 days despite its decline of 45% this year so far. The marijuana company's fortunes, battered badly by the cannabis market collapse of North America and its own inefficiency, could be finally starting to turn around.
But it's no secret that cannabis cultivators like Canopy have burned investors badly more than once, and there's reason to believe that some of the industry's traditional pitfalls are still very much in play. So is this stock worth a buy right now in hopes that its hot streak continues, or is it a trap for investors that's soon to close?
There are a couple of positive developments driving Canopy's bull run. First, in late August, the Department of Health and Human Services (HHS) officially recommended to the Drug Enforcement Agency (DEA) that marijuana should be rescheduled from Schedule I to Schedule III, even though cannabis legalization in the U.S. is still uncertain. If it agrees with HHS, marijuana will become more widely accessible for medicinal use.
Source Fool.com
