RE:RE:Canada's canceled licensesBrokerG wrote: I think it is pretty obvious Tradinghands has shorted the stock and is trying to get everyone to sell.
Well guess what - he wins. There is no way possible this stock should have dropped today. MSO's index was up, even Tilray was up and we get clobbered another 10%. Even the guys on the DLR report can't understand why Canopy is dropping like a lead balloon.
Well it does not matter- shorts win. If I don't see I sizeable increase tomorrow I am out. Something is not right. The only reason I can see is that Canopy will be issuing shares and the market makers and hedge funds know it. I have absolutley no explanation for the drop today.
Any guesses?
Here is my opinion:
1) the stock rose on S3 news but S3 has no impact on CGC Canadian operations..
2) Constellation has moved out of CGC into CUSA and has reiterated there will be no more money for CGC, basically show me the money moment for Klien and gang.
3) The new structure is complicated and muddy at best, and apppears to be slanted towards giving Constellations all the options to hold, exit, and or renegotiate, but not clear to what options shareholders may have if any for any exit.
4) CGC remains officially a going concern.
5) To complete full aquisition of US assets will likely be more dilution/shares issued and not emediatley accreditive, regardles its not clear.
6) Expansion in the US will be costly.
7) Actuall revenue under CUSA is unclear.
8) Very stiff competition in the US and still not profitable in Canada.
Although an intriguing option for a possible short squeeze CGC it is riddled with risk and unknowns for the retail investor, it takes an iron stomache ride this one. There are several MSOs that are pretty much built out in the US and are already rightsized and profitable, especially after 280e is removed.