Bruce Linton’s Firing Helped This Stock Triple in Value!

When Canopy Growth Corp  (TSX:WEED)(NYSE:CGC) announced that CEO Bruce Linton was no longer going to be with the company, it sent some shockwaves through the industry. With some big losses in its most recent quarter and key shareholder Constellation Brands, Inc. (NYSE:STZ) seeing its financials being weighed down the company’s performance, there was pressure on the beer maker to do something.

Whether this will hurt the company’s position atop the industry and the long-term impact is debatable. However, one thing that isn’t debatable is the impact that Linton has already been having on a much smaller company.

Martello Technologies Inc (TSX-V:MTLO) has seen the value of its shares skyrocket in the past week, not because the company had terrific earnings or unveiled some revolutionary product. Rather, it all started when Bruce Linton wore the company’s shirt on Wednesday after being let go by Canopy Growth.

Linton also said he was going to be helping the company — in what capacity is unclear, but the results have already been phenomenal.

Before Bruce Linton associated with Martello, the stock was trading at just 19 cents a share. By Friday’s close, it had soared to 55 cents, and it reached as high as 60 cents — more than triple what it was before Linton indicated he’d be working with Martello. It’s a remarkable turn of events given how little has really happened besides the company gaining exposure.

Linton does have a tech background, and so working with a tech company should not come as a big surprise. However, for a stock to go from trading at average volumes of 130,000 to reaching 20,000,000 on Friday, his presence has had a staggering effect on the stock in just three days.

The big question going forward is whether we’ll see a correction in the coming days or this will be the start of an even bigger rally. The danger is that hype can lift a stock to hitherto unimaginable heights; investors just have to look with what happened during the Bitcoin craze as proof of that.

Takeaway for investors

We saw with Apple leader Steve Jobs just how important a strong leader and visionary is. Bruce Linton has also been a very important figure for Canopy Growth as well. While he might not necessarily have revolutionized cannabis the way Jobs changed telephones, it’s under his direction that Canopy Growth became a $20 billion company.

The more deeply involved Linton is with Martello, the more investors will be willing to take a chance on the stock. Linton’s impressive track record with Canopy Growth has earned him a strong pedigree and reputation with investors. That said, sooner or later the hype will ease and there will have to be some substance behind the stock; otherwise, we could witness a big correction.

Just how high Martello might fly with Linton now on board is anybody’s guess.

You might be missing out on one of the biggest opportunities in Canadian investing history…

Marijuana was legalized across Canada on October 17th, and a little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

Besides making key partnerships with Facebook and Amazon, they’ve just made a game-changing deal with the Ontario government.

One grassroots Canadian company has already begun introducing this technology to the market – which is why legendary Canadian investor Iain Butler thinks they have a leg up on Amazon in this once-in-a-generation tech race.

This is the company we think you should strongly consider having in your portfolio if you want to position yourself wisely for the coming marijuana boom.

Learn More About This TSX Stock Now

More reading

Fool contributor David Jagielski has no position in any of the stocks mentioned. David Gardner owns shares of Apple. The Motley Fool owns shares of Apple and has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple.

Source: The Fool
Bruce Linton’s Firing Helped This Stock Triple in Value!
The Fool

The Motley Fool
Contributor for
The Motley Fool is dedicated to helping the world invest — better. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, mutual funds, and premium investing services.

In all we do, we take a different approach.

We believe – and have proven over decades – that the individual investor can beat the market.

We believe that anyone can do it, even if they don’t have a lot of time or money to devote to investing.

We believe in a long-term outlook, helping people build wealth over time.

We believe that the person best positioned to take care of your financial future is you.

And we work tirelessly on behalf of our hundreds of thousands of members who are enjoying the opportunities that come with having enough money to do the things that matter to them.

While we are headquartered in Alexandria, Va., The Motley Fool advocates for the individual investor around the globe with offices in the UK, Australia, Canada, Singapore, and Germany.

Related posts