Canopy Growth Corporation eyeing recreational supply.

Canopy Growth Corporation is a very proactive and walk the walk kind of company. They don’t jump at the chance to debut a news release every chance they get rather they build up a list of accomplishments and milestones.

For the Fiscal year 2017 , 1,321 kgs are “missing” from Closing Inventories in Q1, Q2 and Q3.

Quite possible that: Weight of harvest was wrong, Sales weight was wrong, Quarter end inventory weight was wrong & Destroyed Waste Or missing.


This has led some investors to speculate that the inventory could have been “bad” or slow moving inventory that did not sell or was of poor quality. This is extremely unlikely. It’s also prudent to consider that it takes time to obtain the final “finished product”. The testing, trimming ,curing and packaging are key steps involved in the time process.


What’s more likely is that the “missing” inventory even Canopy IR is reluctant to talk about is most likely being stored in the vault awaiting¬†legalization in summer 2018.


Massive demand is going to be present almost immediately once legalization is in place. CGC is positioning itself to have stocked shelves and happy customers leaving with their products. A more likely scenario is that the majority of LP’s participating in rec will be sold out and if CGC can pull this off it’s going to work in their favour.

The recreational market is going to be all about brands & how they establish themselves and Canopy Growth Corporation is leading the way with its portfolio of high class brands.


I personally am not worried ,we are going to find out more come June 27. What instills more confidence is that the earnings release is Tuesday & before market open.



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