Canopy's alternative path to profitabilityLast 2/3 quarters, Canopy's loss amount is about average $350m (give or take) except for the quarter with exceptional one time charges (when the loss was about $1.3b). Their revenue for the last few quarters again average $80/$90m.
Let's assume, they will have another $100m revenue in Q4/2019 and similar loss of $350m for the quarter.
Canopy has about $3b cash (or cash equivalents). They are heavily involved/invested in various forms derivatives/investments.
We all know nowadays, big banks (and other institutions) are making a lot of money from investment activities (in addition to typical banking activities) and that's how they show huge profit remembering the interest rates nowadays are so low, they can hardly cover their expenses.
During Sep-Dec 2019 quarter, the stock market and other derivative markets were extremely good. Every quarter, we see Canopy has some realized/unrealized gains/losses from their investment in derivatives.
If Canopy managed to earn even10/15% of their $3b investments (whatever form it is), that brings another $400m investment income. If you put operating income/loss and investment income together, they can easily get to profit situation.
I know they have a huge treasury department headed by veteran professionals (some of them used to be my colleagues and really good at) and in this beautiful stock/derivative market, they should be able to generate $300/$400m investment income from $3b cash/investments.
Hope they surprise the market with a sudden profit situation (I know it's like a day-dream but you never know)!