Starsearcher80 wrote: Bluntly, I don't see Canopy surviving. There are so many red flags right now, it's hard to know even where to begin. I'll take the time though to flesh out my thoughts.
1) The problem started with Bruce. The mode back then was "the world is our oyster", and Bruce truly spent like a drunken sailor. Those were the fun days. Those days are long gone now.
2) Canopy, with Bruce, essentially "swung for the fence". The built. They overbuilt. They went into countries where nothing happened in the end. And the biggest bet of all, they fully expected U.S. legalization, which in the end they needed if they were to survive. Well that dream is now shattered, and it won't happen for years. Canopy doesn't have the cash to last that long.
3) Without U.S. legalization, Canopy is nothing more than a kid standing at the candy-store window looking in, but not allowed to come in.s But far worse, there are established companies building strong positions on a State by State basis, leaving Canopy further and further behind. At this point, I think the race has now been lost.
4) Canopy also misjudged the need for some "country-wide" biggest is best approach in the States. Wrong again. People don't care about big. They care about proximity to where they live and they care about price. Proximity battles are already established, and Canopy isn't even in the race.
5) Enter new management. This has been a TOTAL botch, as much as Bruce's, but in a different way. Multi years in now, and the best they could do was make crapppy weed that no one wanted. They axed many of their own sku's, and so did the OCS, because they weren't selling well. And they have NOT got their spending under control, burning through their cash at an extremely alarming rate. They fired top management, and haven't even replaced them. Seriously? And now their new bet is Craft. Well first of all, they were late to that party. But wait. Now it gets worse.
6) So Canopy new bet is chasing Craft. But with the monster inflation, customers are running the other way to the low-priced end of the market. And in the process, Canopy AGAIN blows reading what the market wants. Who knows if they can actually make good Craft. But more so, in today's economic climate, even if they do, will anyone care? Canopy does NOT have time to get it wrong, or should I say, get it wrong AGAIN.
7) Canopy's cash position is NOT strong.....not with their burn. They're going to have to do a raise in the market, but with the low share price, they're going to dillute to oblivion. This will crush existing shareholders.
8) While Canopy got ride of some seniior management, ti is Klein who needs to go. He's a bean-counter. Not a visionary. Not a leader. And he has proven multiple times over that he is not up to the challenge of bringing this company into the realm of surviving. Instead, I think he's driven it even further into the ground. Single-handedly, imho he will drive this company into the ground.
As I've said before, there are plenty of companies...companies that were once considered "good companies, that have failed. Canopy will be one of those failures. They simply lack the capacity to read the market, respond to the market, make GOOD products that the market wants, and get their past digressions under control. They are floundering, and are getting crushed by their own bloated hand, as well as other LP's that are far more nimble, responsive, and in tune with what the market wants.
That's enough reasons why. There are a lot more, but these would be some of the main ones. This stock remains completely univestable imho.
Contrarian55 wrote: Where's the bottom? What a unbelievable ugly chart. Is it cash value? Is cash value minus debt? ( then that's 0). I see cron holding as cash value. I read that the sector is uninvestable. Even highly profitable mso's are getting hammered, but not like canopy. It's an extra assault here. Just curious where the bottom is. Thanks