Why You Should Own Canopy Growth in 2021
Canopy Growth (NASDAQ: CGC) had a bit of a roller coaster ride in 2020, but now appears more stable. The company made significant progress last year in growing revenue, cutting costs, and launching new cannabis derivatives while keeping its balance sheet strong. Here's why you should invest in this pot stock in 2021 and hold it patiently.
The most important thing for any company in an evolving industry like marijuana is to secure capital. And Canopy successfully did that by partnering with U.S. beverage giant Constellation Brands (NYSE: STZ) in October 2017, with the latter investing $245 million Canadian dollars ($191 million) in the marijuana company. This strong financial backing has allowed Canopy to survive turbulent times while planning its future.
And despite having cash on hand, Canopy isn't backing away from cutting costs. The credit goes to CEO David Klein, who took over in January. As a CFO for Constellation before joining Canopy, Klein has some experience in running a tight ship. He has done some aggressive cost-cutting since April, including closing some unproductive facilities in December.
Source Fool.com
