This Cannabis Giant's Bargain Price May Be a Trap

Click to find out The Value Meter's verdict... [Shield] AN OXFORD CLUB PUBLICATION Loyal reader since August 2019 [Wealthy Retirement]( [View in browser]( SPONSORED [Emergency Election Webinar: FREE TO ATTEND]( If you're wondering which stocks will do best under each candidate... this free event is for you. [At 2 p.m. ET on October 29, Alexander Green will detail "the perfect election strategy."]( Along with his #1 stock for 2025 - no matter who wins! He's used this strategy to outperform the market following every election since George W... [MAL Elect]( And now he's revealing it in full... [Reserve your FREE spot today!]( Editor's Note: In today's Value Meter, Director of Trading Anthony Summers analyzes a concerning cannabis stock... But in the October issue of The Oxford Income Letter, Chief Income Strategist Marc Lichtenfeld revealed his favorite play in the marijuana space: an undervalued stock with a 5.6% dividend yield. [Go here to subscribe to The Oxford Income Letter (at a special discounted price!) and get the name and ticker of Marc's latest recommendation.]( - James Ogletree, Managing Editor [THE VALUE METER]( [This Cannabis Giant's Bargain Price May Be a Trap]( [Anthony Summers, Director of Trading, The Oxford Club]( [Anthony Summers]( Canopy Growth (Nasdaq: CGC) is one of the world's largest cannabis companies, but lately, it's been grabbing headlines for all the wrong reasons. The Canadian producer and distributor of cannabis products has seen its stock price take a beating over the past couple of years as it's worked through significant restructuring and cost-cutting. [Chart: Canopy Growth (Nasdaq: CGC)]( [View larger image]( The company, which produces everything from dried cannabis flower to beverages and edibles, is trying to pivot toward profitability after years of aggressive expansion. It's made big moves into the U.S. market through its Canopy USA business and has maintained strong positions in medical cannabis markets across Europe and Australia. So, is the stock a bargain at current prices? Let's run the numbers through The Value Meter and see what we find. At first glance, Canopy Growth might look cheap. Its enterprise value-to-net asset value (EV/NAV) ratio sits at 1.73, which is well below the average of 6.35 for companies with positive net assets. This suggests you could theoretically buy all of the company's assets at a significant discount. But here's where things take a turn for the worse: Canopy Growth has posted negative free cash flow in each of the past four quarters, and its quarterly free cash flow has averaged -7.53% of its net assets during that span. While that's better than the -18.25% average for companies with similar cash flow struggles, the company is still burning through cash at an alarming rate. Perhaps a deeper dive into Canopy's financials will help ease some of those concerns... [Finish Reading Here]( [The 27th Annual Investment U Conference 2025 - Ponte Vedra Inn & Club in Ponte Vedra Beach, Florida, March 30 - April 2, 2025.]( SPONSORED [Better Than Oil Stocks]( [Click Here to Play]( The best way to profit from energy is NOT a stock... Rather, it's [this little-known alternative investment](. [CLICK HERE TO FIND OUT MORE]( BUILD AND PROTECT YOUR WEALTH [New IPO Signs MAJOR Deal with Apple Until 2040. Will It Be the Next Trillion Dollar Company?]( [The Dollar is Doomed... Again]( [Former CBOE Trading Legend Showed Members 246% Total Gains While the S&P Was Down 20% During the COVID Crash. Now He's Hosting a Free Class Revealing the Answer to Big Wins. 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