Canopy Growth Corp T.WEED

RE:Investor's Crossroads

[Justfishin73]

HonestAbe wrote: From my observations the stock chart was poised for a technical breakout just prior to Q3 quarterly financials, but it did not happen (primarily due to the interpretation of the quarterly results), and then negative sentiment created by the Mettrum lawsuit.

As it stands the valuation of this company is divided into main camps.  One is the group that believes WEED is insanely overvalued and bleeding red ink with negative EBITDA and somewhat concerned by the negligible Q on Q revenue growth compounded by highly inflated inventory level.  The other group believes WEED's corporate strategy of obtaining market share by aggressive growth and rapid expansion at the expense of near term cash flow and lack of profitability is the correct strategy, and they can see that last quarter's revenue was constrained by massive inventory that was not ready for sale yet.

What this means is the stock is in the penalty box and likely to consolidate and even under perform its peers until the true nature of this situation is revealed.  And the only truth at the earliest is when Q4 and next fiscal year's Q1 gets released in June and August later this year.  Too many negative print about biological accounting and net operational losses for company to get further traction until next couple of quarterlies are released IMHO.

Excellent post