There is still hope !Link to full article
https://www.fool.com/investing/2020/07/15/is-hexo-stock-a-buy.aspx There is still hope
HEXO's expansion in Israel's medical cannabis market and its CBD products' launch in the U.S. could help its revenue and profitability numbers soon. Medical marijuana demand is not declining any time soon in any country -- chances are, in fact, that more U.S. states and countries globally will work toward legalizing medical marijuana.
When it comes to adult-use cannabis beverages, Deloitte's research paper "Nurturing New Growth" discussed how cannabis edibles and beverages, in particular, could be worth CA$529 million annually. A survey, as part of the research paper, showed that about 37% of likely Canadian pot users were interested in trying cannabis beverages.
Though cannabis derivatives are in huge demand in U.S. states in which they're legal (evident from the rising sales), lack of federal legalization is still a challenge. But hopes are that 2022 could be the year when federal legalization will see daylight in the U.S. If that happens, both HEXO and the entire marijuana industry have a tremendous opportunity to grow. That might help HEXO meet its target of achieving profitability by the first half of fiscal 2021.
For me, HEXO is still a risky stock, but I haven't lost complete faith in the company. Looking at its growth strategies and confidence in rebuilding itself, I think HEXO is poised to grow in the long term.
Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool recommends HEXO. The Motley Fool has a disclosure policy.