Canopy Growth: No Wonder The Founding CEO Was Fired

Canopy Growth failed to meet FQ1 estimates with sales dipping below key cannabis competitors in Canada.
The company burned the cash balance down C$1.4 billion to C$3.1 billion in the quarter.
The company harvested nearly 6,000 kg more than forecasted near quarterly end.
Another EBITDA loss above C$90 million will push the stock down to the $25 price target and likely lower.
A founding CEO being fired in a hot sector is usually not a good sign and the FQ1 results of Canopy Growth (CGC) reinforce that theory. The stock is plunging towards the 52-week lows and how Canopy Growth bounces around $25 will likely derive where the stock heads for the rest of the year. My previous research following the termination of CEO Bruce Linton had suggested this target was the likely outcome and this price might end up too conservative.
Read the full article on Seeking Alpha

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