BLACKROCK Municipal Income TRUST V.BFK.P

RE:HEXO Checking The Boxes

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Sentiment may not be the best in the market on HEXO but this is a summary as to why I remain bullish / optimistic on the company.  Now we can add a 1/2 ton of unexpected product sales and a new sales channel in Isreal to the mix.

Q
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IMHO the market is over-looking what HEXO has going for it.  Once the company releases drinks, edibles etc (assorted Cannabis 2.0 products) attention will start coming back to the stock and should reflect positively on the share price.  As sales ramp up from those products the QTR reports will show increasing amounts of revenue.

Based on the transcript from the last QTR report HEXO is expecting to turn positive in Calendar year 2020 so the wait may not be all that long for this to occur.

Link to Q3 QTR Report Transcript
https://www.fool.com/earnings/call-transcripts/2020/06/11/hexo-corp-hexo-q3-2020-earnings-call-transcript.aspx

Again.. JMHO

Q



Sales are picking up and can be easily confirmed by looking over QTR reports to see the continual trend upward in sales numbers.
 
HEXO is still attracting investors (under-writers) such as Canacord most recently.  They have strong partnerships with large companies such as Molson Coors.  HEXO and Molson expanded into the U.S. in April.  HEXO also has operations in Europe.
 
If you are looking to check the boxes as to why HEXO is likely to not only survive but thrive go ahead...
 
- Licensed for both Medical and Recreational Cannabis -> CHECK

- Within top 4 Suppliers in Canadian Market with objective of moving to #2 Spot -> CHECK

- Partners with major markets players -> CHECK (Molson 2nd largest brewer in North America)

- Company with European Operations -> CHECK

- Company with exposure to U.S. Markets -> CHECK
 
Let's look for the other check-marks...
 
- Competitive Pricing vs. Black Market -> CHECK

- Providing accessories to support product sales -> CHECK

- Producing Cannabis 2.0 Products -> CHECK

Including (but not limited to): Infused Drinks, Chocolates, Gummies, CBD Oil Droplets. THC Droplets for Flavored Drinks
 
Positive Sentiment on the Stock has appeared in the following ways:
 
- Strong Insider Buying -> CHECK (insides started buying last year at $6.54 and have continued to do so all year.  Complete buying activity reports can be viewed through SEDAR).  The same cannot be said for other major LPs out there. Canopy, ACB, Tilray and Aphria all show some level of insiders reducing or exiting their positions.
 
- Strong Support from Under-Writers -> CHECK.  The fact that HEXO can attract an under writer is positive in it's self in this sector however we have also seen Cannacord paying over market value for shares in HEXO
 
- Meeting or Beating Sales Estimates -> CHECK.  I believe there is only 1 QTR report estimate that HEXO missed in the last year with ever increasing percentage gains in sales Q over Q.
 
Investors coming into the stock see the positives and future potential of the company.  With HEXO forecasting to turn positive in Calendar year 2020, that future is not far off.

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