February 1, 2019

WEED:CAN – Market expectations are for Uniform ROA to inflect positively, and management generated an excitement marker about cash balances and are confident in growth and investments

  • Canopy Growth Corporation (WEED:CAN)¬†currently trades near historical averages relative to UAFRS-based (Uniform) Assets, with a 4.5x Uniform P/B, implying bullish expectations for the firm. Moreover, management is excited about their cash balances and confident about revenue growth, sales strategies, and strategic cost investments
  • Specifically, management generated an excitement marker when discussing increased cash balances from debt issuances. They are also confident about their ability to grow revenue, and tax benefits from cannabis legalization for governments. Additionally, they are confident in their in-store sales strategy, and ability to make strategic cost investments
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