Earlier on March 3, 2019, Canopy Growth announced to collaborate with the Sequential Brands Group, Inc., the parent company of Martha Stewart’s brand to develop and position a broad new line of product offerings across multiple categories.
Martha Stewart needs no introduction as she has cemented herself as one of the most well-respected businesswomen and a household name in the United States. Commenting on the prospect of collaborating with Canopy Growth, express optimism by saying she was delighted to establish this partnership with Canopy Growth. She also mentioned about sharing her knowledge and years of experience in the subject of living with Canopy Growth.
Why Canopy Growth Would Want Help from Martha Stewart
Most people are still not sure how to make up their mind about Cannabis companies as decades of unconstructive news and political backlash have created a bubble of pessimism around using the product as part of a healthy lifestyle.
It is no surprise that Cannabis companies are following the footstep of most new companies entering any new industry. The cornerstone market development is establishing strong brands and Canopy Growth, one of the leading companies in the industry, understood the value of positioning itself as a major lifestyle brand to attract customers. And, who else can help them become a household brand than the friendly face of one of the most iconic name brands in America?
Canopy Growth is in the process of investing between $100 and $150 million in a hemp industrial park in New York State. With several clinical trials underway, the collaboration with Martha Stewart will help them sharpen the CBD product offerings across categories from human to animal and rapidly grow in one of the largest Cannabis market, the United States.
Technical Analysis of Canopy Growth’s Stock (NYSE: CGC)
As growth momentum accelerated, the Alligator indicator crossed over to generate a buy signal for Canopy Growth’s stock in the middle of January 2019. Consequently, the stock gained over 70% market capitalization in just one month as it went from trading near $30 to $51 per share by the end of January.
However, over the last month, the stock mostly traded sideways and the Relative Strength Index (RSI) gradually dropped near the 50.00 level. In the last few days, it crossed above the RSI downtrend line and the stock price also broke above the resistance near $47.05 level.
Given the long-term potential of the collaboration with Sequential Brands Group, Inc. and Martha Stewart, we believe the bullish momentum will prevail in the next few days and we will likely see the stock trading near the next resistance around $51.00 per share shortly. Moreover, if we see the stock price making a clean break above $51.00 level, it will open up the possibility to reach $60.00 per share, which was high from October 2018.
The demand for Cannabidiol will certainly soar if companies like Canopy Growth can take the lead in establishing their range of product offerings as lifestyle brands. After all, they are in the business of selling a product that offers user experience and nothing sells such products more than being associated with celebrities.
The collaboration with Martha Stewart will help Canopy Growth gain competitive advantage against its key rivals, but what it will ultimately do is to change the overall perception about the entire industry and help build growth momentum.
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Source: Crypto Potato