Commodities and Gold

Canopy Falters

The last few weeks have been good for “Big Cannabis,” so we were poised for a correction. Canopy Growth Corp. (NYSE:CGC) gave us the signal.

Nobody seriously thought the giant of the industry would make money. Profitability is still months, if not years, away.

But to make the margins work, even CGC needs to grow its way to efficiency. That’s why the revenue trend is so critical here..

And it’s why CGC faltered today. Its growth just isn’t fast enough to take shareholders where they need to be. It’s frustrating and, in a corner of the market that craves instant gratification, triggers quite a bit of selling.

We’re in the group for the long haul, but I acknowledge that gratification on names like CGC seems farther and farther away with every passing season.

That’s why I prefer Aphria Inc. (NYSE:APHA) among all the big distributors. It focuses on medicinal customers only, which means the hype around recreational markets is not a factor here.

Its growth is good. Its margins are credible. In a good quarter, the company even makes a little money. It is as stable as anything in the industry.

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Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. The Financial Times describes Ms. Kramer as “A one-woman financial investment powerhouse” and The Economist distinguishes her as “one of the best-known investors in America”. Ms. Kramer is often quoted in publications such as the Wall Street Journal, New York Post, Bloomberg, and Reuters. She is a frequent guest commentator on CNBC, CBS, Fox News and Bloomberg, providing investment insight and economic analysis. Ms. Kramer was an analyst and investment banker at Morgan Stanley and Lehman Brothers. Ms. Kramer founded and ran a long-short hedge fund and has been chief investment officer overseeing debt and equity portfolios. Since 2010, Ms. Kramer’s financial publications have provided stock analysis and investment advice to her subscribers. Her products include GameChangers, Value Authority, High Octane Trader, Triple-Digit Trader, 2-Day Trader, IPO Edge and Inner Circle. Ms. Kramer, a Certified Fraud Examiner, has also testified as an expert in investment suitability, risk management, compliance, executive compensation, and corporate governance. Ms. Kramer received her MBA from the Wharton School at the University of Pennsylvania and her BA with honors from Wellesley College. Ms. Kramer has provided testimony regarding investment policy to the U.S. Senate and is a frequent speaker on the markets, portfolio management and securities fraud and compliance. Ms. Kramer is also the author of “Ahead of the Curve” (Simon & Schuster 2007) and “The Little Book of Big Profits from Small Stocks” (Wiley 2012).