From cannabis darling to disappointment – this could be our most controversial Sell of the Week yet…
At one point, it seemed like everyone was placing their bets on this company.
With a historic $4 billion endorsement from the beverage giant behind Corona, SVEDKA, and Robert Mondavi…
Brand partnerships with A-list celebrities like Martha Stewart and Drake…
A now-famous CEO who became one of the world’s first marijuana millionaires…
And an unmatched global footprint…
This was the most successful cannabis company in the world.
That’s the keyword.
The world may not have recognized it at the time, but this company reached its peak in early 2019.
And it all slid downhill from there.
That $4 billion war chest it received in 2018 was used to fund a number of irresponsible investments.
By July 2019, its “Godfather of Cannabis” CEO had been very publicly fired following a series of disappointing earnings results.
By April 2020, its global footprint had been severely diminished after shuttering a number of operations in Africa, Canada, Latin America, and the United States.
And so far in 2021, revenues continue to fall short of expectations.
Sales for the quarter ending June 30, 2021, were down 8% sequentially – while sales for the cannabis market as a whole have continued to grow significantly. Look under the hood, and this company is burning cash at an alarming rate.
The fact is that this former cannabis darling just isn’t making the cut anymore.
Your Sell of the Week (August 19): CGC
You may have guessed it by now that Canopy Growth Corp. (NYSE: CGC) is our latest Sell of the Week.
This company has been restructuring, selling off redundant assets, and shuffling management to try and steer its ship back on course. And sure, its recently closed acquisition of The Supreme Cannabis Company Inc. (OTC: SPRWF) could potentially point it in the right direction.
But it has a lot more work to do before it gets even get close to reclaiming its former glory.
Canopy might still be popular with Robinhood investors, but I want to make sure our National Institute for Cannabis Investors (NICI) readers don’t fall for the hype. Because from what I’m seeing, the risk far outweighs any potential reward when it comes to CGC stock right now.
Let me show you why this iconic cannabis brand no longer deserves a place in your portfolio in my quick video report below:
Canopy Growth might be a wannabe. But there are so many winners out there that you can take advantage of! That’s why I want to make sure I leave you with bigger and better moneymaking opportunities that you can invest in today.
Here are a few of my favorites to get you started:
- In our latest episode of In the Green, the CEO of Village Farms International Inc. (Nasdaq: VFF) shares his number one cannabis stock recommendation – and it’s a name that should be in every investors’ portfolio.
- Don’t miss out on the 20 stocks that top Michael Robinson’s buy list, each with the potential to bank you up to 1,000% returns over the next 8 months.
- You can find out the biggest winner in Florida’s cannabis market in the premiere episode of our new Buy This, Not That series.
- And for two free stock picks that you can invest in today, plus my favorite pick-and-shovel play in cannabis, make sure you tune in for my 12-minute webinar on Cannabis Markets Past, Present, and Future.
To your investing success,
Executive Director, National Institute for Cannabis Investors
7 responses to “Sell of the Week: At Its Peak, This Was the Most Successful Cannabis Company the World Had Ever Seen. Now, It Can Barely Keep up”
August 19 2021