Its most recent quarter definitely didn't do much to instill investor confidence. This is a company that is growing sales at a single digit pace quarter over quarter. Also, margins in the single digits don't really stand out in any significant way for a growth investor. And considering the company doesn't pay a dividend, growth investors are who will flock to companies like Canopy Growth.
I hadn't looked at the company's balance sheet since I sold the stock back in 2018. However, it has a ton of short-term investments. Over $1 billion actually. Why is a company that is expected to provide growth to investors investing a ton of their working capital into non-operating activities?
There could be growth at these price levels. I mean at 18.9 times sales, this is a far cry from its peaks of 160 back in the cannabis hayday.
Management has failed time and time again, like a lot of cannabis companies, to bring anything meaningful in terms of growth to the table.
I'm fairly bearish on the company to be honest. But keep in mind, that is my mentality on a 5+ year timeline. What will happen to the stock in the next 6 months, year, even 2 years I'm not sure.