Cannabis Corner: These stocks all have bright futures

Article Excerpt

Canada legalized cannabis four years ago. Still, while demand has been steady, stiff competition has cut selling prices significantly. Meanwhile, advertising restrictions and plain packaging rules make it hard to build brands that win customer loyalty. Still, we think some companies have a distinct edge—including their prospects for added sales in the U.S. as President Joe Biden stirs talk that the federal government could eventually decriminalize cannabis use. Those are the quality stocks we focus on in “Cannabis Corner.” CANOPY GROWTH, $3.33 (Toronto symbol WEED; TSINetwork Rating: Speculative) (Shares o/s: 480.0 million; Market cap: $1.7 billion; TSI Cannabis Quality Rating [CQR]: ), has announced that it has entered into agreements to divest itself of its Canadian retail business, which includes stores operating under the Tweed and Tokyo Smoke retail banners. The store sales are aimed at letting Canopy focus on its premium-brand cannabis and consumer packaged goods. It should also boost profitability—the retail segment of the cannabis market Canopy is exiting has become tough…