Canopy Growth Is Rallying Again. But Is It a Dead Cat Bounce?

Canopy Growth (NASDAQ: CGC) is a Canadian marijuana company. When it first came public marijuana was a hot sector, but investor enthusiasm has waned. The stock has since declined to the point where it is a penny stock, trading around the $1 per share mark. That's the big-picture backdrop for the recent 25% price gain, but there's a lot more to understand before you consider investing in this company.Penny stocks are generally high-risk investments that most investors should avoid. Some companies come out of the penny stock realm and grow into sizable, important, and profitable businesses. But more often the shares of penny stocks trade for low prices for very good reasons. Many end up disappearing altogether, either because they get delisted or because they shut their doors. And a big percentage move in a penny stock is often a very small move dollar wise. Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool