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Canopy Growth Corp T.WEED

Alternate Symbol(s):  T.WEED.DB | CGC

Canopy Growth Corporation is a cannabis company. It delivers innovative products with a focus on premium and mainstream cannabis brands, including Doja, 7ACRES, Tweed, and Deep Space, in addition to category-defining vaporizer technology made in Germany by Storz & Bickel. The principal activities of the Company are the production, distribution and sale of a diverse range of cannabis and cannabinoid-based products for both adult-use and medical purposes under a portfolio of distinct brands in Canada. Its Canada cannabis segment includes the production, distribution, and sale of a range of cannabis, hemp, and cannabis related products in Canada. International markets cannabis segment includes the production, distribution, and sale of a range of cannabis and hemp products internationally. Storz & Bickel segment includes the production, distribution, and sale of vaporizers. This Works segment includes the production, distribution and sale of beauty, skincare, wellness and sleep products.


TSX:WEED - Post by User

Bullboard Posts
Comment by 55orbuston May 19, 2018 3:13pm
84 Views
Post# 28056814

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:M&A's

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:M&A'sExactly. I think Buckshot and I will have to agree to disagree but I am worried for him a little. I don't put much faith in Aurora's ,"secret sauce"
investor1964 wrote: Hey 55orbust - all good points. And might I add that Bruce has alluded to a big bank investor buying into Canopy more than 5% worth which in itself would mean possibly close to 750M in cash. Add to that the potential for a big bank loan after legalization - we will have cash to buy a large foreign company whether its private or public.
55orbust wrote: Hey Buckshot Canopy has easily raised as much cash as they want through bought deals. If you search your memory you might remember the Constellation deal and the BMO deal when all is said and done raised close to 750 000 000. If you search deep in your memory you will remember Bruce saying that lots of people have offered to give canopy money but he was very selective in who and what he selected. So you might be right that they can't use a shares in foreign markets other than the US, but they will have no trouble raising the money needed for any acquisition they would like to make. Aurora doesn't have the same luxury because they already have close to a billion share count and investors will be nervous to get involved. As far as Aurora and leaf making more money in the last quarter, no one can argue with you there. However that will be very short-lived and might even be overturned in canopy's report in June. If not in June then definitely in the first quarter during recreational marijuana legalization. Please elaborate on how you could even imagine that Aurora / leaf have the same capacity as canopy. You might have some trouble with that one. And please don't tell me that in two years they will because that means nothing. Unfortunately you made a mistake parking your money in Aurora but it's not too late to right your ship. You also didn't explain the "secret sauce" comment which completely shows Aurora has no idea what they're doing.
Buckshot26 wrote: Thank you for the respectful reply, I will do the same.

I beleive Cannimed is a joke so I completely concur with your assessment of them.   There are those that believe that their labs and extraction facilities are valuable but I can't value something I don't know and therefore still can't believe ACB paid just over a billion for it.  For that and other reasons before then I have not owned ACB since selling it back on that amazing blow off top Novemeber 16th, 2016.

LEAF on the other hand has long been regarded by the people I speak to as the smartmoney play.  It had next to no retail following with almost all shares held by it's founders, Institutions and Hedge Funds.  Without a single acquisition they were able to grow themselves organically into the number 3 LP in Canada in terms of revenues.  Last qtr they did just over 11.35m in sales vs canopy's 21.7m.  There are currently only 5 LP's in Canada doing over $5m in quaterly sales, the other  being Aurora $16.1m , Aphria $10.3m  and Canntrust $7.8m.

I think you are showing a real bias with a statement like you made saying the LEAF acquisition is not big.  The number 2 bought the number 3 to become the new number 1.  We can kick and scream all we want but this is fact.  The combined ACB-LEAF recorded $27.45m in revenues versus Canopy's $21.7.  

Next your arguement is flawed in that you state that Canopy has the capital to do a $4B acquisition abroad.  You can't use paper (campany shares) to buy a publicly traded company in other countries.  Once listed in NY they could potentially leverage Canopy paper for an American asset but no one in Europe etc is going to accept shares of a Canadian listed company in exchange for their shares.  A deal outside of North America of any size will require cash.  

How do you support your assertion that Canopy is number 1 and the race is over.  Given they have almost identicle capacity and ACB-LEAF has 25% more revenues it sounds a lot like an opinion more than a fact.


55orbust wrote: Buckshot, I totally agree with that statement. However, I don't agree with the fact that Cannimed and Leaf are big acquisitions. I think the price paid for them was big but the acquisitions themselves were not. I realize you have a position I Aurora but please don't ruin your credibility defending these horrendous acquisition prices. How do you defend the "Secret Sauce" comment. If Canopy spent 4 billion dollars, which they eventually will do but not in Canada, let's be real and agree that Aurora could not keep up. While Aurora grossly over pays trying to catch up to Canopy in Canada, I can assure you that Canopy is building relationships and looking for the right(priced) acquisitions to make globally. The race for number 1 is over. Aurora needs to assimilate these acquisitions and try to make the best of them.
Buckshot26 wrote: Two lessons to be learned from this wikipedia entry, most of which is written on sh is absolute unsubstantiated bs and second big companies become industry leading giants through big acquisitions.

[url=https://en.wikipedia.org/wiki/Foster's_Group]wikipedia fosters group[/url]



investor1964 wrote: Has anyone ever been able to find out if Australia allows a full buyout of their corporations? I know it was rumored that Aurora was considering a buyout of Cann Group in Australia then that rumor died - I wonder if it was because they found out they couldnt? I agree it would be a good idea for Bruce to buy out Auscann if he can!

dirkdiggler3 wrote: Bruce said he will growth organically and not buy any canadian LP and i think it is fine. So we have some near term catalysts (NYSE,7 th june etc) and the sp should increase considerably. I think after the big run up it might be the right time to take over Ausscan and make it our platform for developing the Asia-Pacific region.This being done,they will have to stay on the lookout for opportunities in europe and especially be ready for usa. Just my thoughts,sorry for my english.

 

 










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