
TSE:WEED
This summary was created by AI, based on 1 opinions in the last 12 months.
Experts are expressing significant skepticism regarding Canopy Growth Corp. and the overall cannabis industry. One expert highlights that the company has demonstrated weak returns on capital, indicating that investments made might not be yielding the expected benefits. The concern is compounded by the perception that there has been excessive capital invested within the sector, which has resulted in substantial losses. Furthermore, there is a call for major consolidation within the industry, pointing to the belief that the current landscape is oversaturated and inefficient. Improvements in regulation are also deemed necessary for the growth and stabilization of the market, suggesting that the current environment is not conducive for investor confidence.
The industry looks quite interesting. We don’t get too many opportunities in public markets to invest in an emerging sector like this. You have to be aware that there could be some government challenges along the way. This one seems to be the leader, which is why he chose it. Growth rates look good and he doesn’t think the demand picture is going to be a problem. Thinks that we could see earnings in 2015 that would justify the current valuation.
Medical marijuana. Trades in a fairly volatile fashion. The difficulty he has is that there is huge uncertainty about what will happen to the market, regulations and the court case that happened in BC. There is some possibility that with a change in government, there could be problems. It does look like it has some investor affection. This is “gold rush” time and in a gold rush most people don’t find any gold.
This is pretty early for the sector. One of his observations is that it is less profitable than people think. It is really an agricultural stock with all the risks that are associated with it. Also, there is a lot of hype behind it. He has been Short this one since April. Feels it is overvalued and overhyped. There is going to be more competition for them.