Canopy Growth: Time to Cut Your Losses?

Okay, let’s talk about admitting when you’re wrong. It’s tough, right? Like realizing you wore socks with sandals. Or, in the investing world, holding onto a stock that’s performing about as well as a screen door on a submarine. If you’re staring at your Canopy Growth (CGC 0.85%) position and feeling that particular brand of investor despair, let’s have a little chat.

See, there was a time when Canopy Growth was the ‘it’ stock. It listed on the NYSE in 2018, right when everyone thought marijuana was going to solve all our problems… or at least, significantly boost weekend brunch options. It briefly soared – we’re talking over $568 a share! – before reality, like a strongly worded email from your boss, set in.

Now? It’s trading for a little over a buck. A buck. That’s less than a fancy latte. If you bought near the peak, you’re not just underwater; you’re pretty sure Jacques Cousteau is sending you postcards. A comeback would require a miracle… or a sudden, global shortage of avocado toast. And frankly, I’m putting more money on the toast.

It’s a penny stock, folks. And not the charming kind you collect. It’s a money-losing, share-diluting penny stock. Think of it as the office supply closet of the stock market: full of things you thought you needed, now just cluttering up the space.

The Silver Lining (Because There’s Always One)

Here’s where it gets interesting. You’ve got these losses. Big ones. And the beautiful thing about losses, aside from the emotional toll, is that you can use them. It’s called tax loss harvesting, and it’s basically a legal way to tell the IRS, “Hey, I messed up. Please don’t make me pay quite so much tax.” Savvy investors do it, institutions do it, and frankly, anyone who wants to keep a little more cash in their pocket should be doing it.

You can carry those losses forward for years. So, selling Canopy Growth isn’t just admitting defeat; it’s pre-funding your next questionable investment. (Don’t worry, we all have them.) And if, against all odds, Canopy Growth stages a miraculous recovery? Well, you can always buy back in. Just maybe… don’t go all-in this time.

Look, nobody likes admitting they were wrong. It feels bad. But sometimes, the smartest move is to cut your losses, lick your wounds, and invest in something… less likely to leave you staring into the abyss. It’s not about being a pessimist; it’s about being a realist. And honestly, a little tax savings never hurt anyone. I’ve used tax loss harvesting to justify more than one regrettable purchase, and I stand by those decisions. Mostly.

2026-02-26 17:32

The Silver Lining (Because There’s Always One)

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