Where Will Canopy Growth Be in 1 Year?
2019 was a disappointing year for investors in marijuana stocks and particularly dreadful for shareholders of the largest one, Canopy Growth (NYSE: CGC). But the market always looks forward, and after plunging following a particularly horrible earnings report, the shares have rebounded 52% since mid-November. Is the market's optimism about the near-term future of the company justified? Let's look at what will change for Canopy Growth in 2020 and what will stay the same.
Investors already knew that co-founder and CEO Mark Zekulin would be stepping down by the end of the year, but when the identity of Zekulin's replacement was announced in December, the market loved the pick and shares jumped 14% in a day. David Klein, chairman of Canopy's Board of Directors, will leave his position as Chief Financial Officer of Constellation Brands and take the reins on January 14.
The choice signals that Constellation Brands is strengthening its control of Canopy and intends to use its strong influence to see gains from its $4 billion investment sooner rather than later. The market clearly approves, and now Canopy's top two executives – CFO Mike Lee was previously CFO of Constellation's wine and spirits business – are veterans of the beverage giant with strong financial backgrounds and experience with consumer brands.
Source Fool.com
