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.
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.
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.
15 responses to “New Canopy Growth CEO David Klein Is the Right Person for the Job”
December 09 2019