Even by BullStock standard this place has become too stupidWith Pumpers pumping non stop and basher bashing with very huge lack of knowledge this board just got to stupid.
Let's try to have a real picture of why cannabis stocks are going down and see where Hexo ends up:
- There is a fear that cannabis stocks are not able to supply AND that potential buyer would be attracted to black market as a result.
- Hexo being Quebec based
- Valuations of these cannabis stocks are off the charts
- technical analysis
Here are my thought (i am long Hexo but not for a quick flip):
- This could be true, but the main reason i invested in Hexo is because of their elixir. This is a product that is not easy to find on black market. you can't go to you local subway station or squeegy guy and ask him for some 1:1 CBD/THC sublingual spray. Yes there might be a shortage but this is only highlithing the demand for the products. Hexo does have a plan to produce more, more quickly. Elexirs also have th advantage of being spoilage resistant. If you read about ppl that bought in stores some are complaining about dryness of the product. They are also complaining about the advertise weight not being met. This is not a problem with oils.
- Quebec has cheap electicity. Hexo also has contract with onther provinces. 80%+ of the orders on day 1 were orders in Ontario and Quebec. Being in Quebec give the advantage of being in a local market, cost control, and cheaper workforce.
- The valuations of some of these stocks have been insane. Hexo is not one of them. In fact this is what Riposte was talking about. they wanted the valuation of Hexox to be on par with the Tilray and Canapy. 12X future earnings is low. once the results start coming in Hexo's value will shine.
- anyone looking at technical analysis for canabis stocks are idiots. Both on the way up or the way down. Technical anlaysis is great for stable stock. The only technical analysis conclusion to take form cannabis stocks is that "canabis stock are volatile"
If anyone want to have constructive discussion (wether bull or bear) great. Idiots (wether bull or bear) can save their time and just rate my post instead.