Constellation Brands CEO Robert Sands
Source: Forbes.com
I had a feeling that something wasn’t right when Constellation Brands (STZ) announced in October 2017 that it was investing C$245 million in Canopy Growth (CGC). Canopy at the time, and still is, a highly speculative company sporting a multibillion dollar valuation with several million in sales; though such extreme valuation is common place among marijuana stocks and is accepted as “the norm” among investors. At the time I brushed it off as the management testing the waters for new areas of growth; C$245 million wasn’t that material to the company based on its $40 billion market cap and $2.5 billion EBIT.
There is no doubt once completely legalized, marijuana will create a large consumer market, one that could be…
