TSX:WEED - Post Discussion
Post by
charlie007 on Apr 24, 2024 4:08pm
out for now, glta
Canopy Growth’s plans to create Canopy USA to strengthen its competitive position before U.S. federal legalization.
Canopy's non-THC assets provide diversification and growth that help offset the still-growing and unprofitable cannabis business.
Canopy will be able to slash its costs and focus its business, so profitability can be reached sooner than our forecast of 2026.
While Canopy waits for U.S. federal legalization to enter the THC market there, U.S. multistate operators continue to grow bigger and become more competitive.
Canopy will need to issue equity at a massive discount to our fair value estimate, diluting existing shareholders and destroying value.
The existence of the illicit market limits the potential price increases that Canopy can push through to consumers.
Company snapshot
WEED is
down 32.2% for the last 12 months. This company is highly leveraged. It has a
debt to total capital ratio of 51.9%, which is among the highest in its industry.
Fair value estimate
9.10 Cas of Mar 22, 2024.
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