They've lost a ton of market share. They were aiming for 40% of the market out of the gate. A few years in, they have closer to 10%
They are still right up there in the top 2 along with Aphria and have recently regained some of the ground they lost. Keep in mind a lot of new players have entered the space in the past year and almost all the original LPs lost market share. That's bound to happen when CGC was one of only a handful of LPs who had product on shelves in the first year and now there is over 100 LPs in Canada.
Lost either hundreds of millions, or over a billion quarterly for 2 years now.
Although Bruce was a bit too "loose" with STZ's money, i'm not sure I would say they "lost" that money. They have used that capital to open their own wholly owned retail stores, a beverage plant, they have Biosteel sports nutrition which is now the official drink of the Raptors, Sixers and Mavericks, Martha Stewart CBD, they have several celebrity and athlete endorsements, This Works cosmetics, Storz & Bickel, and CBD for pets as well. And of course, it allowed them to purchase Acreage and gave them a clear path of entry into the US. I'm not sure I would call that "lost" money.
They've been closing and selling inefficient assets in part because they overbuilt
In the previous comment you mentioned their high cash burn being a bad thing and then you mention them closing facilities as a bad thing as if they're not correlated. Here is what a lot of people are missing. A company who is closing facilities because they have no money and needs to shut down operations they would have preferred to keep open is in bad shape. This is NOT what is happening with Canopy. The difference is that after Klein's Q1 2020 review of Canopy's entire operation, Canopy is willingly shutting down facilities they no longer need in order to bring in expenditures and work towards profitability. Bruce over estimated the demand and as you mentioned played the hype game. Klein came in and has cleaned shop. Although they have spent more money than most, they still have more than everyone ($1.7 Billion as of last ER). As an investor this is a positive, not a negative.
Their name recognition in Canada is synonymous with terrible hay weed.
That is conjecture and your opinion. It is easily disproved by simply looking at facts. They had $135.3 million worth cannabis sales last quarter alone. That number should increase again this upcoming quarter.
A little disappointed they haven't accomplished more internationally when they had such an amazing lead in the space. 2 years ago, nobody had the international reach of CGC. They let that slide.
Another change that came after Klein's operational review. They announced that international markets are still several years away from being developed and they have entirely shifted their focus to the U.S.
Acreage is the very worst run MSO in the USA and they way overpaid for it, even after it was renegotiated. It will take all $5b from the next round of warrants to turn that cr@p into an asset worth owning. Acreage is a package is licenses that are getting less valuable by the day.
We will agree to disagree. Acreage is not what you think it is and most people, just like you have entirely written them off. They serve the purpose needed for CGC/STZ to enter the U.S. including some very important states. Acreage already started selling Canopy branded flower and beverages in the United States.
They currently operates in 15 states including important states like New Jersey, New York, Ohio and Pennsylvania amongst others. They also have 28 open dispensaries, 71 total dispensary licenses and 24 cultivation and processing licenses. They are well positioned to allow CGC to catapult itself into the largest THC and CBD market in the world. Saying they overpaid for Acreage is misguided as the value of that investment for CGC/STZ will become more and more obvious as time goes on. In 5 or more years I highly doubt anybody will think they overpaid.
Also, the same way STZ came in and cleaned shop with Canopy, they have already begun doing with Acreage. As part of the renegotiated merger, Kevin Murphy had to step down as ceo. He was replaced by the former president of Phizer, Peter Caldini. STZ and Canopy spent A LOT of money to get to this point with Acreage and I can assure you that they will be well prepare to capitalize on the US market.
They full on lost the race to be the dominant player in the first nationally legal market on earth. As$ handed to them kind of lost.
This is such a ridiculous statement. We are in the first inning of a massive sector in it's infancy and you are writing them off as if it's Aurora, Canntrust or Namaste we are talking about here. They haven't done nearly as bad in Canada as you are implying. The amount of conviction and hate in your comments about a company you aren't even invested in leads me to believe you are thinking emotionally instead of rationally.
I dont care if they have $10B more in capital
Well, you most certainly should. Money talks.
GLTA!!
You as well."
Full link to Reddit forum post:
[url= [url=https://www.reddit.com/r/weedstocks/comments/le1ppe/canopy_growth_corporation/]https://www.reddit.com/r/weedstocks/comments/le1ppe/canopy_growth_corporation/[/url]] https://www.reddit.com/r/weedstocks/comments/le1ppe/canopy_growth_corporation/[/url]