Canopy Growth: Honestly, What’s the Point?

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So, Canopy Growth (CGC 2.56%). Canada’s big cannabis hope. Or, as I see it, a perfectly good example of throwing money at a problem and hoping it just…disappears. They’re consistently unprofitable. Consistently. It’s like they’re actively trying to lose money. And people are still buying the stock. It’s baffling. Truly baffling.

The whole thing hinges on getting into the U.S. market, naturally. Because Canada, apparently, isn’t enough. There was this little blip last December, a momentary surge of optimism, and everyone got excited. For, like, a day. Then reality set in. Which is that federal laws are…federal laws. And they don’t just change because someone wants them to. It’s a system, people!

And now, get this, some of Wall Street’s “smartest” investors are buying more. More! As if doubling down on a bad idea is a sound strategy. I mean, who are these people? Do they not have access to basic financial statements? It’s like watching someone repeatedly walk into a glass door and then asking for a loan.

They’re probably just waiting for the next “catalyst.” That’s what they call it, isn’t it? A catalyst. Like this stock needs a chemical reaction to become viable. It needs a business model. That’s what it needs.

Big-Name Funds…Really?

According to these SEC filings – which, by the way, are just a mess of numbers and jargon – it wasn’t the usual mutual fund managers piling into Canopy. No, it was the quantitative trading companies. The algorithms. Apparently, a computer program decided this was a good investment. That’s comforting. Really comforting. Susquehanna, Citadel, D.E. Shaw…they’re all in. I bet their algorithms are programmed to ignore common sense.

Susquehanna bought 2.75 million shares. 2.75 million. That’s a lot of shares. What are they going to do with all those shares? Frame them? I’m picturing a wall covered in Canopy Growth stock certificates. It’s a disturbing image.

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Shares Are Down, Which, Honestly, Is No Surprise

The stock had a little run-up in December when Trump issued an executive order about rescheduling marijuana. Rescheduling! It’s not legalization. It’s a step toward legalization. Like saying you’re thinking about maybe possibly considering doing something. And then, predictably, the stock went down. Because that’s what it does. It goes down.

Now everyone’s trying to figure out if these institutional buyers are selling, or just buying more at a lower price. Like they’re playing some kind of game. It’s infuriating. Just pick a strategy! Make a decision! And the next 13-F filings will tell us…eventually. In the meantime, I suggest everyone just…stay away. Seriously. Just walk away. You’ll thank me later. Or you won’t. It’s really not my problem.

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2026-02-04 23:02