
TSE:WEED
This summary was created by AI, based on 1 opinions in the last 12 months.
Canopy Growth Corp. has drawn criticism from experts regarding its performance in the cannabis industry. One notable review highlights the company's weak returns on capital, which raises concerns about the substantial capital that has been reportedly invested and subsequently destroyed. The expert suggests that the cannabis sector lacks the necessary regulatory improvements and market stability, which hinders investment decisions. Additionally, there seems to be a call for major consolidation within the industry to enhance the operational efficiency and overall viability of companies like Canopy Growth. Consequently, investors are advised to approach this stock cautiously until the market improves significantly.
These stocks had run up a tremendous amount. The valuation is insane. A lot of speculation in this space. The corporate governance in this space is not strong. For any investors that have made money in this space, should be taking profits now. It’s likely natural that they will pull back now that is legalized. He does not own companies in this space.
Canopy Growth (WEED-T) vs Aurora Cannabis (ACB-T) The battle of the titans. Both companies do good things. He favors Canopy as it has a lower risk diversified growth strategy in 12 different facilities. He also likes the deal with Constellation for further diversification. Aurora is expected to grow with the expansion of the new facility near Edmonton, but he wonders if the growth will be staged and may be slower than people expect. Canopy also has an advantage given its size of existing product inventory.
He's avoided the weed space, because cannabis producers--being commodity producers--have very low profit margins. This is a gold rush now. Some companies will survive, but some won't. There are legalization challenges, especially about edibles. Canopy will survive, because Constellatioon Brands is its major backer, but doubts it can maintain its stock levels. Right now, cannabis is a total crap shoot, though Canopy is one of the strongest of the pack.