| | Saturday, August 31, 2019 | The Warrant Situation between Canopy Growth and Constellation Brands By Greg Miller | The latest earnings report from Canopy Growth Corp. (NYSE: CGC) did not inspire confidence.
It wasn't as bad as most people believed, but there were some issues that could have been addressed better.
There were some strategic mishaps, and executives running the show could have taken more responsibility for what went wrong.
In fact, one of our members had a comment about that.
Aimee S. said: "Growing pains for companies like Canopy are not unusual. What bothers me is that it did not take responsibility for its mistake and, from what you said, it's unclear if Canopy has adjusted its strategy."
Aimee, you just said exactly what I told Canopy's investor relations staff after their call. The good news is that the company has adjusted its strategy - in addition to taking a reserve for returns, Canopy shipped very little oil or gel-cap product during the quarter that just finished so that stores could run down their inventories.
The bad news is that on the earnings call, the executives made it seem like a pretty serious marketing error was just one of those things that happens from time-to-time.
I communicated our shared concern to Canopy's management.
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