One poster wants to know ifwe've hit bottom yet. I can answer that with...........maybe!
The sweet waft of pot permeating the air is being replaced with a steady stream of dead cat!
Jmho, but pot stocks are just getting started with a major tanking and the big, well prepared and financed are going to rise to the top of the survival list and some of those are suspect too!
Canopy Growth was a world leading International marijuana and hemp company, slapped together by Bruce Linton, a visionary, of where this industry is going. He grabbed up everything that he thought would advance our cause and a lot of it was overpaid and some of those umbrella companies went by the wayside.
One thing for sure, that he did, was to wake up the naysayers and a lot of investors made a lot of money. Of course the stock knife cuts both ways.
Reality speaks loudly and Canopy drew in Constellation Brands for one of the biggest deals ever in the cannabinoid business. What speaks louder is "money" and Constellation valued Canopy dearly enough to cough up $5 billion C to be a part of their future. Constellation is a beverage unicorn, well run with an eye to profits and dividends, but dreaming doesn't make that happen. The great measuring stick is profits and what is happening to generate those profits. In this case it is sometimes in the future profits.
Canopy came in with enough clout to change the rules back to accounting principled assessment of the financial picture. The dream is still alive for a lot of shareholders and potentail shareholders and the shots are being called by the guys with the money, Constellation Brands.
No profits on the bottomline, yet! This is where you have to take the leap of faith that some hardcore entrepreneurs vision is achievable. Massive run-ups in shareprices can still happen like it did with Canopy but the pot investors are more experienced now with what to look for. This market isn't buying any bullchit and profit and loss fundamentals speak loudly.
Don't ignore what the future see'ers have envisioned. Constellation sees some of their future in cannabinoid infused beverages and a lot of investors don't follow what is going on. Canopy had a headstart in a pro-marijuana country and invested heavily in a major production facility for cannabinoid infused beverages. Constellation sees the same future but with the States size market, which is still sorting itself out and still has some archaine laws on the books which has necessitated work arounds and end-runs to keep pace with the US MSOs who have the hometeam advantage.
Canopy went one more step and chose a US MSO called Acreage Holdings from which to build our US operations. Since then with Constellation's decision making they have locked up or have fingers in several other cannabinoid companies doing business in the US, to advance our weighting as a world leading marijuana and hemp co.
Significant deals are happening to utilize Acreage, GAGE, TER for rapid setup of Canopy Growth in the US marketplace. That is not to say that they aren't continuing with making tough decisions to turn the Canadian and other International interests to profitability, but the general conscensus is that the huge US marketplace will show profits and that is based on the fact that a couple of MSOs are eaking out black ink, but just as desperate for some law changes at the Federal level so they can do their business in all US States, hopefully with a level playing field with Beverage Alcohol.
I have put out there that I think Canopy can hit their old high shareprice, maybe even a little better, with some form of triggering bill and swing the doors open to that huge US marketplace.
There is going to be huge attrition for 95% of the players so it is important to smell the green waft and not mistake it for the dead cat waft! This will take time although you can expect more irrational exuberance in shareprices with a good pot bill towards legalization at the Federal level.
I placed some bets on niche plays that I thought would survive that haven't done very good at all and I placed my heaviest bet as an investor on Acreage Holding shares, for their deal for Canopy to assume their shares over to Canopy shares when the legal beagles feel the risk is legislated out.
I believe that the Canopy deal with Acreage is going to be finalized shortly after a trigger stateside. All of those shares will be in short supply because those US investors see value in Canopy. If you don't believe me pull up the sharecount on US exchanges for Canopy shares.
Canopy is a world leading cannabis company with a well financed big brother STZ who I think will continue to back all of their interests because of the profit potential.
Some of those smaller, unique players with something special going on can possibly make you rich but the odds are longer imho.
What's wrong with a 10 bagger for Canopy?
glta and dyodd