Summary
Canopy had a better-than-expected quarter, but there is still large problems left over from previous management.
Chief among these are huge cash burn and inventories.
The entire industry has two regulatory issues: the slow rollout of retail in Ontario, and the uncertain pace of recreational legalization internationally.
Canopy is still a company with a lot going for it, but there needs to be a restructuring to deal with the cold hard realities of the Canadian domestic market.
There will be plenty of opportunities for short-term plays, but I still cannot recommend a long-term investment in any of the Canadian cannabis companies.
There Is Good News and Bad News
Chris Wimbush. Canopy’s previous management was violating the First Law of Holes: when you are in a hole, stop digging.
This just reported quarter was a big one
