D- Day coming....How bad will it be?As most of you know, Canopy is reporting their financials Thursday. Personally, i really don't care as i don't have vested interest in the company or this sector and have been warning peeps to completely avoid this part of the market for the past three years. If youl listened to folks like me, you saved yourselves mucho dinero and are happy camper. If you did not, well, i can only imagine what the massive losses in both finanicial terms and actual hair on your knoggins must be.
In any case, if you are STILL invested in this company, there's a few important things to look for. And three critical ones. One, if they've STILL managed to remain cashflow positive with revenue vs cogs for the quarter. I don't think they'll turn a profit anytime soon, mabye not in the next few years or until some form o legalization, but you still want to see overall costs/expenses come down. Two, some debt reduction. Canopy still carries a huge debt load and they currently the most indebted publicly traded LP in the in the industry. If you see absoutely no reduction in that debt, that's a massive red flag. And lastly, dilution. How bad is it actually? Both on the state of their share structure and ANY possible future dilutive measures coming in.
The big problem with canopy right now, is their main market. The Canadian market is virtually non existant, very unproftiable & still way over saturated with too many players and not enough demand to go around to everyone. Their recent move to divest/spinoff most of their Canadian ops and focus on the US market is a start, but there still a very LONG ways to go.
So if your invested here, make sure keep you ears and eyes wide open to listen & see not only what mgmt says in the CC but to also focus on those key points i made above.
GLTA