RE:RE:RE:RE:David Klein needs to goFirst of all Contrarian, no, I'm not paid to be here. You're smart enough to know that the daily number of readers on this forum, or any stockhouse forum for that matter, doesn't warrant hiring someone. Furthermore the number of readers and their assets is a pttance compared to the daily trading volume. But you've been around the block enough to know this, so cut the craap. And if you don't know this, well my apologies for overestimating you.
The more I think about it, the more I think the "running into the ground" theory has merit. Generally, I'm not one for conspiracy theories, but if you add up everything, it seems to make more sense than any other explanation. Consider the following:
1) Have they (Constellation via Canopy) put ANY money into Canadian assets? Essentially, no. But there they are buying U.S. assets. I look at this as essentially Constellation paying themselves back with Canopy money with what was originally Constellation money.
2) But why not put money into Canada? Why not by Canadian assets out there at pennies on the dollar? Oh, because they don't care, or don't want to be, in Canada.
3) So Canopy fires two senior positions last year. Have they made ANY efforts to replace those positions? Not that I've seen. So who does that? Oh, a company that doesn't care and doesn't want.
4) It's well known in the buying public that Canopy is putting out substandard Weed. With all the assets they had at their disposal, is it that frigging hard to get it right? Well I guess so. Or, they don't care and they don't want.
5) Their marketing campains? "Do what feels good"??? That's the best the could come up with?? That leads to association with Canopy??? Damn that sucks so bad.
So the run the company into the ground, spending like feinds on the U.S. side, with money they shouldn't be spending. And they drive the share price into the ground. Well what a surprise Now they have cash flow issues? And now they're being soooo helpful, converting to shares at prices so bad? What a convenient mess.
We'll see what happens with the Canadian assets, but I think they'll end up piecing it out for what they can get. And again, they've essentially already written them off with the efforts to drive it into the ground, so truly, they don' care. So what does all this mean for average shareholders? Personally, I think they're screwed. You mentioned delisting. It will be interesting to see how this endgame plays out, but I think the days of Canopy existing as the company we've known, are now absolutely numbered.
Contrarian55 wrote: STZ has already called Canada the testing ground. I agree with you that they seemingly have run this into the ground, whether intentionally or not. No one is gonna buy the Canadian assets. Not now anyway. Although that could change in a few years. You bears make it seem like it's going to 0. The elusive delist. Tax free win.
Starsearcher80 wrote: I think there is some merit to the u.s. assets. I don't think Klein/Constellation gives a rat's azz about Canada, and has already basically written it off. What you're seeing imho is the full and purposeful destruction of Canopy. Constellation is NOT their friend in any regard. So here you have the slow motion takeover of the company, squeezing the literal life from them at every turn, now buying into shares at severely depressed prices. And when they've got what they want, they'll sell off the Canadian assets for pennies on the dollar and call it a day. It's just business folks. Nasty? Yes, nasty as Hell. But at the end of the day, it's just business. In this nasty process, regular shareholders will be crushed, collateral damage in a ruthless game. Welcome to the market.
Mosdef111 wrote: I'm not a Klien pumper but any means, but if all other lps and msos where taking off while Cgc was at these prices, I would agree. But the whole sector is messed up. Klien was put there by STZ. It's not like he had full reign to do whatever he wanted as 4/7 board members are all from STZ and most biq acquisitions he did required a vote I would imagine.
of course I don't know all the ins and outs of daily operations, but I'm more concerned with what they are doing to advance in the states. Clearly what is happening with SAFE/legalization is not guaranteed. While I would think safe would pass by end of this year, if not.. they must have contingency plan.
maybe the BioSteel deal will keep them afloat while they wait. I guess we will see next quarter. I read off Reddit that last quarter numbers didn't include 10-15 in revenue from Biosteel for some accounting reason
so this quarter we should be looking at 20-25 million alone from BioSteel, if not more.
hopefully they can include Wana gummies Canadian revenue. Don't know if that is even possible.
While I'm sure the Canadian rec side has declined.
I understand the debt, and the shrinking cash balance. But does everyone seems to forget the us assets. They are paid for and owned. Cannot be renegotiated, or walked away from. It's not like they completely squandered all the money, they used it to build out the us.