The Aphria-Tilray Merger Shows Just How Overpriced Canopy Growth Is
Cannabis producers Aphria (NASDAQ: APHA) and Tilray (NASDAQ: TLRY) rocked the industry when they announced last month that they were merging to create the largest cannabis company in the world (based on pro forma revenue). The move instantly creates a new leading cannabis company in Canada, and one that could become a big competitor in the U.S. market once pot is legal at the federal level.
For a long time, many cannabis investors saw Canopy Growth (NASDAQ: CGC) as the industry leader. But with the company struggling to generate sales growth, there are much better pot stocks to buy. And the deal with Aphria and Tilray only makes matters worse, as it creates a powerhouse that's a much better bargain than Canopy Growth.
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Source Fool.com
