Fruit and vegetable grower/supplier CGC has endured a tough time since COVID but we believe the stocks now formed a major low. Last month we discussed how the company’s international operations were delivering strong results and we believed this is a turnaround story in the making, unfortunately at the time we were looking for dips back toward $2.50 as a low-risk entry opportunity but now the dial appears to have turned towards the stock and we have to consider being more proactive.
There are now reports that CGC is in final takeover talks with a US private equity investor, we were clearly a day too late but it shows investors are scouring the “dogs” for value. Look for an announcement this morning either confirming or denying media reports of the deal – nothing out yet.
- We like CGC initially targeting the $3.30 area, or 10% higher – not a big call now.
MM is bullish toward CGC
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