CGC - 1 Big Reason to Stay Far Away From Canopy Growth Stock
2023-08-03 05:30:00 ET
Canopy Growth (NASDAQ: CGC) has often been seen as one of the safest cannabis producers to invest in. It has significant operations, considerable resources, and a big investment partner in Constellation Brands (NYSE: STZ) , which poured billions into the company.
But a lot has changed over the years, and there's one significant reason I wouldn't invest in the company right now, even at its greatly reduced valuation.
Canopy Growth's cash and liquid resources have been shrinking -- significantly -- as it has invested in other cannabis companies, focused on expansion into a U.S. market that's off-limits due to the federal ban on pot. As a result, its day-to-day operating activities have burned through a huge amount of cash.
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1 Big Reason to Stay Far Away From Canopy Growth Stock