RE:NAKKA 212Not sure why we have to read this carefully since everything you are trying to say is really old old news that all weed investors knew about a long time ago.
First of all, everybody already knows that Canopy will be doing a forward split at some point because the shareholders voted on this in the last meeting back in July. As already talked about ad infinitum on these boards here, the only question is whether it will be a 2 for 1 split or a 3 for 1 split and when will Canopy decide to do this.
Second of all, there is no way that Aurora will be doing a reverse stock split becasue as all financial investors know, reverse splits usually signals the death knell of a company and are done only as a last resort to keep the company afloat. Especially since in virtually all reverse stock splits I have seen, although the share price will initiallly go up to reflect the reduction in outstanding shares, the share price will almost in all cases drop right back down down to pre-split price level within a year or so.
And third of all, Constellation did not pay $5B CDN to acquire 38% of Canopy. Since they had already paid around $200M to acquire a 9.9% stake in Canopy back in October of 2017, the $5B paid this time was to acquire a further 28.1% or thereabouts giving them a total stake of 38% ownership. And they also gain rights in the form of warrants to purchase a further 17% giving them majority control at 55% iif they decide to exercise them at a cost of a further $4.5B CDN dollars. Notice how the share price is rising each time Contellation makes an further investment.
So, I guess if you rework your numbers using the amounts paid and to be paid by Constellation, your market cap calculation of only $13.1B for Canopy is actually incorrect on the low side.
Nathan2018 wrote: read this carefully.
1. if you do not read this carefully. you will go on my ignore list.
2. read ths carefully
when i said...."canopy is seriosuly considering a foward split" i did not pull this out of my read end....
it was on their website...it was on a letter...given out to shareholders...in a shareholders meeting....doing this foward split is ONE OF THEIR MAIN TOPICs....
reason for doing this?
they said.....read this again...NOT I SAID....CANOPY CEO SAID....
50 dollar is too much.....you and i can not buy 5000 shares of canopy at 50 dollars...its too much....so people will look for a cheaper company....
solution??
do a foward split....
this means....canopy issues more shares.....350 to.....700 million shares......
that means....the price of canopy comes down from 50 dollar per share...to 25 dollar....
now canopy has more shares...about 700 million....BUT MANY PEOPLE CAN AFFORD TO BUY THE CANOPY SHARES AT 25....
this happens all the time....reverse splits and foward splits.....investment 101.
thats what i said...if canopy is considering to increase their outstanding share to 700 million....
why worry about 950 million share?
now 950 million share is not a good thing.....but IT WAS MADE THAT WAY TO BUY STRATEGIC copanies that will in long term benefit through revenues, sales, and profits....and also to increase the number of medical marijuana patients.
as you can see, acb went from 5 dollars to 8 dollars in less than 1 week. WITH 1 BILLION SHARES OUTSTANDING...
we had 0 news. it was a piggyback ride on CANOPY NEWS...
imagine a news....that relates to acb only....hemp had it...canopy had it....its acb turn...
it will shoot up 50%
be a long term...this is coing from a guy who had 30 000$ LOSSS....NEGATIVE...in his TFSA ACCOUNT....
i held on....i lost sleep....i held on.....i emailed acb company and they told me how their comapny is positioned to be the top leader...they told me...what each investment brings to acb....
i was convinced....so i held on...
I AM ONLY DOWN 5 000 K that is nothing.
be a long term dude.
IF CONSTELLATION BRAND ALONE....says canopy growth is worth 13.1 billion dollar
because they gave 5 bil for 38% so 100% comes to 13.1 bilion....
imagine what acb would be.....ALL THIS IS WITHOUT MJ NOT BEING LEGALIZED...before legalization...constellation brand has given canopy 13.1 bil value....
imagine 2 years into legalization....you think it would be 13.1 bil?
if weed goes up....acb will because these 2 are strong and well positioned companies....
crons and aph and other small players will be gobled up by the big players in 2 years time....
when their sales drop....because they did not spend big money or shares to get a big foot print...where as acb and canopy did....