CGC/WEED has had a decent bounce as investors got excited about possible US law changes. It also raised some money by selling assets. But it still has high debt, high losses and highly negative cash flow. It has a 'going concern' warning from its auditors. Basically, it has to survive long enough in order to benefit from US legislative changes, and we do not like betting on the timing of this or even on any government moves. If there are no changes, CGC still has a possibility of insolvency, and thus not a stock we are comfortable recommending today. The company has blown through more than $5B in cash in five years. Now, it could double, or even triple, under the right scenario. But we do not like anything that could also possible see zero.
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