Send in the clowns
Why is Canopy at a new 52 week low with little support. For a lot of reasons we've discussed.
1. Any reform that isn't full legalization hurts Canopy and helps the US MSOs gain market share in the US
The Market in Canada has turned out to be too small to sustain the market cap of multiple billion dollar companies.
They are burning cash badly while the companies in the US are EBITDA and cash flow positive.
The MSOs in the US have 10-20% quarter over quarter, not yearly growth rates. Canopy's sales declined last quarter and Growth in Canada is non existent.
Despite having two hands behind their backs the MSOs have surpassed Canopy in sales and profitability. They will double Canopy's sales next year some of them.
Last and worst of all Canopy is valued 2x and 3x higher than most of the larger MSOs except for Cura.
How can you expect a company with bigger losses and less revenue to trade 3x higher than larger profitable companies? And then still think that the stock will go up? You most definitely have a screen loose if you don't see a problem with this situation.