Imagine it’s January 1, 2000, and you’re looking back on a decade of successful tech investing. There were dozens of outstanding companies with even more outstanding stocks, and they turned ordinary investors into millionaires or even billionaires.
Some of those companies aren’t around anymore. Others remain at the top of the industry.
Maybe you got rich from Cisco, or JDS Uniphase, or the first public incarnation of Dell. Maybe you owned a company like Viseo or SDL or Netscape and made a bundle when those companies sold.
Entering the 1990s, the most successful tech company was one that had already been dominating the market for many years – Microsoft. No matter how well you did during the PC and technology boom, you’d have done better if you had some Microsoft in your portfolio.
Cannabis today looks much like that ’90s tech boom.
And this one company is starting to look a lot like Microsoft…
“The Microsoft of Cannabis”
Canopy Growth (NYSE: CGC) is the Microsoft of the coming cannabis boom.
With its visionary management, its global reach, and its unparalleled cash hoard for acquisitions, Canopy is the King of Cannabis.
And now, with its acquisition of Acreage Brands (CSE: ACRG), Canopy is a major player in every important cannabis market on earth.
Canopy has been in the Cannabis Investor’s Report model portfolio since January, and frankly so far it’s been a bit of a disappointment.
But I kind of expected that – at Canopy’s size, it takes big news to move the stock.
Well, the acquisition of Acreage is big news. (If you haven’t already, take a look at last week’s full report – you’ll understand why I called this a watershed moment for cannabis.)
It’s also a stunning announcement that my investment thesis on Canopy is correct – that the company can use its massive market capitalization and its huge hoard of cash to do whatever it wants.
I want to share something with you, clipped from Canopy’s webpage.
That’s Canopy’s global footprint. Every important cannabis market in the world has one of Canopy’s dots on it, save Israel.
And Canopy is growing so quickly it can’t even keep its webpage up to date. There should be a dot on Colorado – Canopy acquired a major hemp research company called Ebbu which will power the company’s entry into the U.S. CBD market. There should be another dot on upstate New York – Canopy is making the largest CBD investment in history up there.
And, of course, now there should be a dot in each of the 19 states where Acreage has an existing or planned operation.
And that’s just the companies that Canopy owns or controls outright. The company also has about two dozen minority investments in some of the best U.S. brands, Canadian brands, vape products, Canadian CBD, and more.
It also owns a large piece of Canopy Rivers (TSXV: RIV, OTC: CNPOF), a company it spun off last year (ironically, to hold Canopy’s U.S. assets). Canopy Rivers in turn owns pieces of even more cannabis companies.
With all of that, you can see why Canopy is this decade’s Microsoft.
Full story at NICInvestors.com