This is the start of a new era for Canopy Growth…

Constellation Brands (NYSE: STZ) did what I expected, but better.

It picked a new CEO for Canopy Growth Corp. (NYSE: CGC), and it chose one of its most trusted insiders.

David Klein has been the Chief Financial Officer of Constellation Brands since 2015, and he has been on Canopy’s board for over a year.

Klein was also named the Chairman of Canopy’s Board of Directors in October.

The only real surprise here is that Constellation let him go!

Klein is known on Wall Street as an operating CFO – one who takes a deep interest in the operations whose finances he oversees with an eye toward increasing profitability.

Institutional Investor magazine named Klein the top CFO each of his three years when he was running Constellation’s financial operation.

That operational bent will be key as Canopy combines its unparalleled size and international reach with the drive toward profitability in 2020.

And with Klein running the company, I’m going to show you why a new era is starting at Canopy…

Constellation Renews Support for Canopy Growth

People have asked if Constellation will walk away from its Canopy investment with the stock having been under pressure.

The opposite is true.

Constellation has now placed key executives at Canopy as Chief Executive Officer and Chief Financial Officer – the top two positions in the company.

Another Constellation executive, the vice president of its wine and spirits division, sits on Canopy’s board. There’s no question that Constellation is telling the truth when it says that it is committed to Canopy as the engine of the company’s future growth.

The next steps will be for Klein to announce his plans for the company.

The big plan – use Canopy’s massive cash hoard to solidify its worldwide leadership position – is not going to change.

But Canopy has operating problems, and I’ll be looking to Klein to make some changes there in due course. One of the advantages of choosing someone already well acquainted with Canopy is that it should not take as long for Klein to devise an action plan as it would have taken an outsider.

Canopy next reports its results in February.

Navigating the changes in the cannabis market doesn’t have to be difficult – claim your copy of the 2020 Pot Profits Roadmap right now to get started.

But I don’t think it will be that long before we see some action from Klein. Look for the company to slow its capacity expansion in Canada and increase its focus on Cannabis 2.0 products.

We also may see some changes in Europe.

A new era at Canopy starts today – an era of financial discipline and revenue growth to accompany its strategic moves.

And as a reminder, I put together this guide for the best way to profit from Canopy Growth.

There are three ways to do it, and all have different levels of risk.

Take care,

Greg Miller

Executive Director, National Institute for Cannabis Investors

P.S. This strategic move from Canopy Growth comes just in time for Canada 2.0. When this second wave of legalization breaks over Canada, we believe it could release up to $7.8 billion into the market. But there isn’t a lot of time left to get involved. That’s why we want you to the details on these two companies that are trading for under $3 each before Canada 2.0 hits on December 16th. Learn how you could start seeing gains from these two companies now.


Comments

15 responses to “New Canopy Growth CEO David Klein Is the Right Person for the Job”

  1. Is the planned acquisition of Acreage Holdings by Canopy Growth still on track? Acreage stock has taken a real beating, losing two-thirds of its value in the past six months?

  2. Thank Goodness. I am a small investor who paid $46 plus for shares and now all of them have declined! I was told by a neighbor/investor not to let this one go. I have been very disillusioned at the loss and discouraged by the down slide. I was not in it to make a killing yet I had hoped it would give me some security for the future. Now, maybe that can happen.

  3. Ya know man I am absolutely SICK of this analyst Bill Kirk from MKM. David Klein gets tapped as Canopy’s new CEO and it takes Kirk one day to write something negative about it. I have had enough of his biased writing on this sector man. Just look at his track record. Every time something positive happens in this sector and we see some gains he comes out of the woodwork and writes something negative to cause those gains to be given right back. Someone needs to reel this punk in!!!!!!!!!!!!!!!!!!!

    • Pot stocks are down because of their poor performances and because of overestimated forecasts made by all kind of so called analysts ,the only strenght in this sector was that big companies pumped even billions in some of these bad mangaged pot companies ,CGC got 4 billion from STZ but squanderd already almost half of that money,revenue is poor and losses high as is the case with most of the pot companies.Untill cannabis products are getting legalized on national level in the US there is not much progress to expect to become profitable for most of these on the brink of bankrupt companies. With CGC it’s good to have changed management but it’s still while before the numbers become intresting for the long haul.

  4. Constellation Brands is not a foolish outfit..They saw that the future is not in alcohol…They invested in Canopy Growth because it is the top outfit. Bruce Linton is a loose cannon…not a bad trait…he just kept growing the outfit…and it doesn’t need more growing until it starts to make some profit….so you take what you have and make some money…when you are profitable, you expand….l believe Constellation is going to take over Canopy Growth lock, stock and barrel……this rates 5 stars

  5. I have also lost half of my investment,but stood strong on the belief of a long trem investment,!!
    I think Canopy is now coming out of the woods and the only way they can go is up!! So I decided to stay all in for the long term,…it might be a lesson learned or a expensive lesson loss. Hope all the positive news is correct.

  6. Will the February reporting lower the Canopy stock prices… if I were to buy more Canopy stock would that be the best time to buy more??

  7. Would Coke still be interested in Aurora after its dilluted shares and falling stock price. Would this be a prime time for Coke to make its move on a global cannabis stock like Aurora? Perhaps there waiting for cannabis to be legal in the US on a federal level.

Leave a Reply

Your email address will not be published. Required fields are marked *