Indeed, Prime Minister of Canada Justin Trudeau is on his way to legalize recreational marijuana. On March 28th, he confirmed that he will introduce a bill within the next month. This news propelled the stock up 11%, with a potential for the growing trend to continue. Source From a financial point of view, we can see that for the period going from March 31st 2016 to December 31st 2016, total assets grew 49%. On the other side, total liabilities increased of 33%. In my point of view, such statistics demonstrates that the company can be growing without borrowing any money. In the long term, it can be really profitable for Canopy Growth to finance itself with its money. If we take the time to look at other numbers, we soon realize that the company can’t manage to be profitable without financing. However, I would not even think about buying this stock at his actual price because of three specific facts. First of all, the diluted EPS of the company is -0.01. In other words, Canopy Growth is losing Medical marijuana money.
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