Hexo Corp. should top the buy list of TFSA investors.Link to full article
https://www.fool.ca/2020/07/05/2-tfsa-stocks-to-buy-right-now/ Ryan Vanzo | July 5, 2020
Hexo Corp. (TSX:HEXO)(NYSE:HEXO) should top the buy list of TFSA investors. With a market cap of just $400 million, this pot stock should eventually garner a multi-billion dollar valuation.
Why is Hexo so promising? It’s all about the long-term strategy.
In 2018, pot stocks were flying off the shelves. Nearly every marijuana company saw its valuation double, triple, or even quadruple. They all rushed to bring massive amounts of supply online.
By 2019, the party ended. That’s because investors realized that it took more than production figures to turn a profit. Cannabis businesses needed to figure out how to brand their output to create pricing power. Hexo understood this early. That’s why it’s such an appealing TFSA stock.
Rather than focus on pot production, Hexo dedicated resources to building long-term partnerships. Its deal with Molson Coors Canada Inc., for example, should launch a co-branded THC drink this year.
Ask yourself what is more likely to succeed: a pot beverage from Molson Coors, or a competing product from an unknown cannabis startup? Hexo is betting on the former.
If you want to capitalize on the recreational pot opportunity, Hexo should be your top choice.