Can Canopy Growth Survive Another 5 Years?
The company is still burning through cash, and its outlook doesn't look all that great.
Overview
The hope for many Canopy Growth (NASDAQ:CGC) investors is that in the long run, there will be a big payoff from the stock. Once the U.S. legalizes marijuana, the Canadian-based company will generate significant growth, become the behemoth they expect it to be, its valuation will rise, and their losses will turn into gains.
The problem is that it's full of assumptions. Legalization is by no means a guarantee, and it's definitely not on the horizon. Canopy Growth, meanwhile, would still face plenty of competition in the U.S. market, even if it were able to access it. The company's problems wouldn't be fixed simply because a new market opened up.
Details
The long-term picture may be exciting in the best-case scenario, but the bigger question investors should be asking today is whether Canopy Growth will still be around in five years, and whether the cannabis company will be around long enough to profit from future opportunities.
Source
Originally published at www.fool.com.