Why would anyone own Canopy when they can buy a U.S. cannabis company growing at 100% and already profitable for a huge discount no less. Canopy 4x-16x More Expensive than Peers Canopy is on its own as new management attempts to justify a premium multiple. Tell us and you could win $50! For more information, please see our Content Disclaimer. Before former co-CEO Bruce Linton was fired in early July 2019, he strongly believed that the best way to encourage employee loyalty and align the company's values with that of its workers was to give long-term-vesting stock to employees. The company withdrew prior milestones for profitability, citing its strategic shift and the coronavirus impact. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Since no other countries aside from Canada or Uruguay have legalized recreational marijuana, it means the overseas markets Canopy is catering to are solely focused on medical-pot patients. We looked into the probability of a buyout in a prior in-depth report and found it was a long shot to say the least.
Here's What The Charts Show, How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks, Get Timely Buy & Sell Alerts With IBD Leaderboard. Marijuana stocks fell, with Canopy Growth stock tumbling. SMITHS FALLS, ON—Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX:WEED, NYSE:CGC) will release its financial results for the fourth quarter and fiscal year 2020 … May 22, 2020 By Communications. Results: Canopy Growth lost 3.72 in Canadian dollars. It’s abundantly clear the stock was previously supported by the market belief Constellation would come in to buy the company if the stock price fell below $20/sh. It's received four direct or indirect investments from Constellation Brands, which owns approximately 38.6% of Canopy's outstanding shares, including a $4 billion equity investment that closed in November 2018. Bitcoin (BTC) Price Surge: Has Crypto Spring Sprung? Canopy remains the most expensive cannabis stock in Canada. With Canopy's goodwill totaling 26% of total assets, there's a growing possibility that this could be its fate, as well. Here's What Earnings, Altria Stock Chart Show. Finally, investors would be smart to keep a close eye on Canopy Growth's goodwill -- i.e., the premium paid above and beyond a company's tangible and intangible assets when making an acquisition. His core areas of investment coverage at Grizzle include marijuana, energy and technology. According to Wall Street's consensus estimate, Canopy Growth is expected to deliver $130 million Canadian ($92.9 million U.S.) in sales, representing year-on-year growth of 38%, with a projected loss of CA$0.40 per share, which would be narrower than the CA$0.98 per-share loss in the year-ago period. Of course, it's not alone when it comes to rising selling, general and administrative (SG&A) costs, as SG&A expenses have increased for pretty much all licensed producers as their output has expanded. Even though Klein has made it pretty clear that his company is done making acquisitions for the time being, it doesn't resolve the fact that Canopy Growth appears to have grossly overpaid for the transactions that were already completed. Betting on all three outcomes at once is truly foolish considering Canopy is struggling to hold onto market share and the current oversupply continues to push down prices.