Bruce Linton Talks Macro Markets, U.S. Cannabis & Canopy Growth
In this Trade To Black Podcast episode, TDR Founder Shadd Dales and lead financial writer Benjamin A. Smith speak with former CEO of Canopy Growth (TSX: WEED) (NASDAQ: CGC) and current Chairman of the Advisory Board at Red Light Holland Corp. (CNSX: TRIP) (OTCMKTS: TRUFF). Bruce gives additional views on where he sees the cannabis market today, as well as his views on macro market conditions.
One of the topics of conversation is Canopy Growth (NASDAQ: CGC), which first began trading on the NYSE back in May 2018. At the time, there was plenty of enthusiasm surrounding the company’s uplisting and ability to attract new investment capital, with cannabis legalization just months away in Canada.
Although Canopy Growth initially soared into Canadian legalization in October 2018, the bloom quickly fell off the rose. Stagnant growth, a plethora of competition in the Canadian market and oversupply leading to plunging cannabis prices took its toll. So much so that Canopy recently announced that they entered into agreements to divest its retail business across Canada which includes the stores operating under the Tweed and Tokyo Smoke retail banners.
Operational savings realized through the aforementioned transactions are expected to result in Canopy Growth’s projected selling, general, and administrative (SGA) cost savings being closer to the high end of the annualized target range, expected as part of the cost reduction actions announced on April 26, 2022.
As it stands today, a $10,000 investment in Canopy Growth back then be worth less than $1,000 today. The price performance has moved more or less in lockstep with weakness in AdvisorShares Pure US Cannabis ETF (NYSE: MSOS), which has declined nearly sixty percent year to date. For its part, Canopy Growth is currently down 73.08% year to date.
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