It’s been a tough year for cannabis stocks. However I am seeing some important signals that tell me the worst is over and that cannabis stocks are ready to resume the long-term trend higher in 2020.
Canopy Growth Corp (WEED, CGC) is a great example. Canopy is the largest cannabis company in the world. When Canopy does well the broader cannabis sector tends to follow.
Canopy shares recently jumped higher after announcing the company had finally named a new CEO. Here is a link to the press release if anyone wants to take a look.
Canopy Growth Announces David Klein as New Chief Executive Officer
Canopy’s CEO vacancy was causing a lot of uncertainty around the stock price. It’s like a ship with no captain or a team with no coach. Naming a new CEO removes a ton of uncertainty from Canopy and give shareholders new confidence.
The new CEO is one of the reasons Canopy is up more than 50% from the 52-week low that was hit in mid December. The 7-month down trend that had been in play from April to November has been broken.
These are both positive signals that tell me Canopy has finally hit a bottom and that a big rebound and rally should be coming.
Take a look at the chart below.
*Chart from Trading View
What Should We Expect Moving Forward?
2019 has been a tough year for cannabis stocks. However I am seeing important signals that tell me the worst is over and the sector is setting up for a great rebound in 2020.
Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading. Michael Vodicka owns shares of Canopy Growth Corp (WEED) at time of writing.
