RE:RE:RE:I hate to admit it butI don't think STZ was that negative or harsh Home, he mention that Klein and team are expected to clean up operations in Canada and generate healthy net margins and realize profit, it is not intended that they lose coin here and are depending on the US operations to carry them. This is not a dressing down of Kein or the work so far it is just good business and has been expected from Klein when he took the wheel here.
Profit realized by the end of FY2021 was the target from Klein's first report/ assessment and should be expected or Klein is the wrong man for the job at worst case...and they are half way there now with expectations the same. There is no indication that Klein is failing or will fail to meet the targets cited with 4months to go...STZ is expecting Klein to achieve original goals and they should. Klein has sent a couple higher level managers to the house, which takes time to assess and come to these conclusions.
Let's see the plan work it's way through or at a minimum close to completion before writing Klein off and STZ is saying the same or he would be gone by now...we need to get the next report in a couple of months to see where Klein and Canadian operations are in relation to where they should be and if not meeting expectations maybe Klein goes to the house?...whatever the case Canopy will be realizing profit without being carried by US operations and we expect nothing less as well. JMHO...Opt
Homestretch4me wrote: North of $50
Keep in mind that these comments are coming from the constellation CEO. Their initial 5 billion investment hasn't done so well and has been a drag on constellations quarterly reports and these comments are a way to calm constellation's shareholders and reassure them but they're not just going to throw more money at this if it's not performing well.
It's the first weakness I've seen between constellation and canopy in terms of their relationship. I still have faith that canopy will deliver and the warrants will be exercised......But
Newkands could have said something like, "We'll have to see where things are at when the time comes" I don't understand why someone that has a huge interest in Canopy would be so careless with his comments.
We'll see what develops but Keep in mind that Constellation has an agreement that allows them to purchase a certain amount of shares on the open market and I'm sure they would like them at a lower price. Q3 and Q4 of this fiscal year just became a lot more important and are under a lot more pressure to show a dramatic improvement from where Canopy sits currently.
No need to go into panic mode but we definitely need to be more cognizant of the fact that doubt has creeped into Constellation's mind.
Iminlong wrote: Homestretch, thanks for the post. This is important info. What do you think STZ feels would be "in the money"? I haven't figured that out.