Market Overview

After Firing, Bruce Linton Buys More Shares Of Canopy Growth

After Firing, Bruce Linton Buys More Shares Of Canopy Growth

Bruce Linton in early July was "terminated" as Canopy Growth Corp (NYSE: CGC) CEO, but that didn't stop him from buying more shares in the company he founded.

What Happened

Linton said during a CNBC interview Tuesday morning the case for investing in Canopy's stock is based on a combination of cash on hand, the culture and a footprint that spans 16 countries and 4,000 employees. The cannabis company also boasts more intellectual properties in its portfolio than "any other company."

Linton is following his own advice and acknowledged he bought more shares of Canopy although he did not quantify his purchase.

"I was one person [as CEO]. If I was that important to the company, the company is not that key," Linton said. "We have an awesome team there and when it's cheap you buy more."

Linton said he has bought more shares, but didn't specify how much.

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Why It's Important

The cannabis sector as a whole typically goes through a brief period in August when stocks become "cheap," Linton said. Many stocks are defined by high-volume and driven by retail trading, but when traders take a typical August vacation cannabis stocks fall.

Investors can take advantage of the near-term disruption ahead of multiple catalysts in the cannabis industry in the coming months, he said. For example, the Canadian government has already approved new cannabis products to be allowed to sell in the market, including edibles.

Related Link: Bank Of America Remains Bullish On Canopy Growth Despite The 'End Of An Era'

What's Next

By the end of 2019, Linton said a lot of the "good" cannabis stocks will move higher while the "weak" ones will "be dead." The poorer companies will likely suffer from an inability to raise capital in the coming months.

Canopy Growth's stock traded higher by 4.9% to $28.04 per share Tuesday morning.

Posted-In: Bruce Linton CNBC Squawk BoxCannabis News Top Stories Markets Media Best of Benzinga


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