RE:RE:RE:300% UpsideHi llaallaa,
1M sq. foot facility construction did not start in december.
that facility, in and of itself, will not produce 108kg
contract with sqdc is not for 200 000 kg annually
sales estimation is based on inflated sale price of 7.90$ (since most of production will be sold d to sqdc at around 5 $ per gram.
all this in a few paragraph article is enoufh for me to discard it at junk written by someone that knows nothing about DD...
llaallaa wrote: I’m curious what you are referring to when you say the article is “riddled with (sic) factual inaccuracies”
The main facts mentioned in the article are these:
“In 2019, Wall Street expects Hexo to grow its sales by more than 2000%.
Its new 1 million square foot production facility, which began construction in December, will soon be ready to go online.
This facility alone will produce an annual output of 108,000 kilograms of marijuana.
Last month, wholesale prices were $7,790 per kilogram on average, which could result in more than $800 million in new sales for Hexo this year.”
“Much of these sales are already de-risked, as Hexo has a five-year deal with Quebec to provide 200,000 kilograms of pot annually.
In 2017, Canadians purchased more than 750,000 kg of cannabis worth $5.7 billion, with estimates for it to grow to $9.2 billion by 2025.”
“Now trading at 32 times sales, Hexo appears pricey, but incredible growth is fairly assured this year. With a market cap of just $1.2 billion, shares could quickly trade for less than 1 times sales. If these sales do come through, there should be plenty of upside.”
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which of the above facts are inaccurate? Just curious.
Bigbaboon wrote: While its nice to read about somebody who’s confident about hexo’s success, the article is riddled wirh so many factual inaccuracies, it’s not worth reading. The guy doesn’t know what he is talking about, just some motley fool cr_ap, again...
BlackKettle wrote:
Undervalued and under-appreciated
Article from Motley Fool today:
https://www.fool.ca/2019/01/06/my-favourite-pot-stock-for-2019-with-300-upside/
Very good read indeed!
GLTA
BK