Is Canopy Growth a Buy?
Canopy Growth (NYSE: CGC) is a shadow of the stock it was a year ago when the cannabis producer was full of high hopes and expectations for the future sitting atop an exciting new industry with nothing but growth ahead of it. The Canadian-based company was considered the industry leader, but today it's a much different story, one full of question marks and uncertainty. It would have seemed crazy to think that after legalization happened in Canada, when there would be even more opportunities, the stock would see its price get cut in half. And yet, that's exactly what has happened.
Trading at under $20 a share as of Thursday's close, Canopy Growth stock has fallen significantly from the 52-week high of $52.60 that it reached in late April. The big question for investors is whether more of a free fall could take place or if now could be the time to swoop in and buy the stock for a bargain price. Let's take a closer look at where the company is today to determine which is the better approach to take.
One of the biggest question marks surrounding the company is who will be leading it. With former CEO Bruce Linton out of the picture and the current CEO Mark Zekulin ready to leave once a successor is named, it's hard to assess a company without a leader in place. And that could lead to significant changes in strategy. One thing we can surmise is that the company's future path will likely be different than Linton's very aggressive growth strategy, which made profits elusive for the company, something that investors grew tired of and which was likely a factor in his forced departure.
Source Fool.com
