Canopy Growth (TSX:WEED) under selling pressure
Recently, Canopy Growth (TSX: WEED) has been under some selling pressure. There are a few reasons. As we reported here on October 5, 2018, a group of Canopy insiders sold shares at between $64.37 and $65.79 per share. With WEED closing at $44.37, the insider group seems prescient. But not so fast. If you offered WEED CEO Bruce Linton the chance to go back and never have sold a single share, I’m sure he’d accept. There are other disgruntled types who point to WEED’s less than stellar recent financial results. Latest quarter sales were up only 33% compared with increases of 260% for Aurora Cannabis and 117% for Aphria as we reported in Let’s Toke Business in the November 16, 2018 edition. As regular readers know, however, I still believe this is an event driven market and fundamentals aren’t as important. With an estimated $4+ billion to spend, I suspect WEED will be creating several events to spark investor interest.
In The Cannabis Report Model Portfolio, have trimmed the Canopy growth position and with the stock at $44.37, the sales at $55.90 and $67.74 are looking good. But what that really means is while the naysayers of crying “sell!” I am thinking about buying some back.
If I am correct in assessing that we are in a trading market, Canopy’s market action of late means it is more of a buy than a sell.
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