Time To Buy CANOPY GROWTH CORP (OTCMKTS:TWMJF) On Weakness

A correction of more than 20% in 2018, has seen most pot stocks lose a substantial amount of market value. CANOPY GROWTH CORP (OTCMKTS:TWMJF) is one of the stocks that has seen its sentiments turn sour after a 30% pullback. Buy On Weakness The sell-off which has come on massive volume is the subject of attention on Wall Street, as investors wait to see if it will persist. In our view, the sell-off presents a unique opportunity for bounty hunters to get involved in a solid investment with a reliable track record in one of the fastest growing industries.As was the case in our previous analysis, Canopy Growth upward trajectory cannot be ignored especially after the recent pullback. Canopy Growth is still one of the fastest growing marijuana stocks that any investor looking to gain exposure in the marijuana sector should have in their portfolio. TWMJF Daily ChartThe recent sell-off in our view is a minor correction given that Canopy Growth remains well supported by solid fundamentals capable of pushing it to new higher highs.With the stock currently trading in the $22 handle, it needs to close above the $25 a share mark for it to make a push for its 52-week high of $35.88. On the downside, immediate support is seen at the $20 a share mark, below which the stock could drop to the $15 handle.Before we make our case on why the stock is destined to trade higher, let us first review what it does in pursuit of growth and shareholder value. About Canopy Growth Canopy Growth is a licensed medical marijuana company based in Canada. Through its subsidiary, the company produces and sells medical marijuana products. Its portfolio of products includes dried oil and softgel cannabis products.In addition to selling products through licensed cannabis dispensaries and stores, the company also offers its products online, as part of its diversified sales channel.$200 million New CapitalFor years, Canopy Growth has played the role of heavyweight champion in the legal cannabis business. Contrary to perception, the company is not expected to cede the position anytime soon, as it continues to enjoy the early-mover market advantage.The closing of a previously announced bought deal financing for $200 million, underscores the company’s credibility and credentials in the industry. Through the offering, the company sold 5.8 million common shares at a price of $34.6 each. What Next It goes without saying that the new capital will go a long way in strengthening the company’s competitive edge, at a time when Canada’s cannabis market is expanding. The company has already confirmed plans to use part of the funds for capacity expansion, both domestically and internationally.Also, part of the funds is to be used for brand augmentation, channel development, technology investments as well as for research and development purposes.That said, there is no denying the fact that Canopy Growth has the financial muscle to shrug off competition in pursuit of sales in the industry. The company also remains well positioned to expand its production capacity and come up with new products needed to strengthen its competitive edge in the industry.Green Hemp Industry Ltd AcquisitionCanopy Growth has completed the acquisition of assets and intellectual property associated with Green Hemp Industry Ltd. The purchase is part of a diversification strategy that seeks to expand the company’s footprint into hemp harvesting and extraction business.A combination of Canopy Growth large scale cannabinoid extraction processes with Green’s unique whole plant harvesting knowledge will result in a global leader in low-cost CBD production.

“This strategy will fundamentally change the economics of CBD-based products on the market today,” said Mark Zekulin, President, and Canopy Growth. “Whether extracted oils formatted for medically-authorized customers or over the counter offerings should regulations permit, look for Canopy to continue its commitment to patients by providing a range of high-quality products at competitive prices.”

Bottom LineThere has been a lot of concerns that the emergence of the likes of Aurora Cannabis could pose a significant danger to Canopy Growth industry leader credentials. While true, Canopy Growth remains a solid investment given its leadership in the medical marijuana market.Premium branding and a unique online platform for selling products are some of the attributes that make the company an exciting pick as a long-term investment play.Unparalleled access to capital markets also means the company is well positioned to pursue emerging opportunities in the industry and come up with new products perfect for protecting and growing its market share.There is no doubt that Canopy Growth will remain a market leader in the cannabis space as the legalization drive evolves. That said, the recent pullback presents a unique opportunity for investors who missed out on the initial run, to bet on a company with immense opportunities for growth.We will be updating our subscribers as soon as we know more. For the latest updates on TWMJF, sign up below!Disclosure: We have no position in TWMJF and have not been compensated for this article.