We own a decent amount of stock in Constellation Brands as my wife worked there for a number of years and they usually matched a portion of purchases as well as offered discounted stock buys. That said, they've been flat lately and have spent a ton on acquiring smaller craft beer companies.

One acquisition that has me curious is their equity buy in a Canadian Canabis company called Canaopy Growth Corp. I guess my theory is if weed is legalized in the US then this stock could really jump. Am I off on that? And if I'm not, would it really move the needle much?

I am not a trader, I know very little about stock. I like Pawnshop's and real estate. If we did sell the stock it would most likely go into more rentals. TIA

I bought some today with a long term hold in mind

I would stay long on it. Their import beer portfolio has been very strong lately and continues to grab market share (Corona, Modelo, etc.). They're divesting some old stagnant wine brands. That, on top of the cannabis investment, tells me that they have a youth movement in mind to fuel some growth. There are a few companies and brands that seem to be elbowing our beer space well. In the big beer realm, Constellation, in the craft beer realm, Dogfish Head.

I own CGC by itself. Long term hold. It's not if but when weed is legal everywhere. Companies like this have potential to blow up.

OP, you asked an easy question.

Constellation Brands is one of the finest companies in the world and it sells for a reasonable PE (Price/earnings ratio) of 12 on the previous 12 months earnings and a PE of 19 on next year's earnings and at less than 5 times sales. The only question is do you like the new CEO since the guy that built the company is retiring. Constellation bought a bunch of Canopy Growth 5 years ago when it was cheap and added more of it so your buying Canapy Growth through Constellation at a huge discount. For instance, Canopy Growth has no earnings so it has no PE and it sells for 200 times sales!!! OMG, that might be a new insane valuation that the Guiness Book of World Records ought to look at.

I own Constellation Brands and it's a lockbox stock in my opinion. The cannibus aspect of it should provide big growth going forward.

Thanks for the input. Wife worked for the Beer division, specifically the wal-mart team. Don't know the new CEO as she left the company to raise our babies in April.

CGC is almost without question the worlds premiere cannabis company.
STZ has invested wisely in them and also hedged their bets in a scenario where weed is legal and people drink less corona.

Bias: someone who is very bullish on weed in the next decade. With potential for some of these companies to 10-20x, weed stocks may be a better investment than STZ, but it will benefit nicely from CGC's continued success.

Well that sucked. Probably why I hate the stock market.

Because it dropped?

Cost average down.

Ouch. Sorry about that but since this is a long term hold for you it will recover.