5 Reasons Canopy/Contellation a HOMERUN 5 Reasons Why the Constellation Brands Cannabis Strategy is a Home Run
....Constellation is a highly sophisticated, experienced and skilled operator when it comes to regulations and we believe they will figure out how to replicate their previous success when it comes to winning through government interaction, lobbying and shaping regulation and then building a business around it.
To summarize, Constellation identified an opportunity through government regulation, paid a huge sum of money to lock down that opportunity, and then spent years optimizing that opportunity in a manner that has led to incredible results for their shareholders. And now they are investing in the cannabis industry in a manner that will give them years of sector experience ahead of other huge beverage, pharma, or consumer staple players, the muscle memory of government interaction, first mover advantage etc. Like the Crown acquisition, they paid up, but it worked before so give them the benefit of doubt and raise a toast (of Corona, sans lime) to the sheer brilliance of the entire gambit.
Constellation’s stock price is now ~$200 per share with 2019 guidance of $9.55 per share; a 400% gain in the six years since acquiring 50% of Crown from Ab/InBev. Not bad for a beer, wine and spirits company. We can’t say if the stock is a buy but we know cannabis is changed forever and Constellation just put themselves in their experiential sweet spot.
https://www.newcannabisventures/