RE:Who is hexo buying. Should buy? Despite the coverage of Cannabis by the media the sector is still trugging along and sales are moving up and U.S. legalization is progressing. Stores continue to open in Canada to serve the demand, channels to market (stores) do not currently service the demand out there, so that too is still developing.
When the U.S. will legalize is anyone's guess. That will likely be driven more by politics and economics than by anything else. With the U.S. election coming up and U.S. Senators promoting Cannabus Legalization as a means to rebuild the economy through new tax revenue and fast job creation we may see something come up just prior to, or following, the election.
The companies that come out on top will be the ones with the best product mix, produced with quality and sold with the best margin / profit. That list will be further limited to the companies that successful transition from the start-up / non-profitable stage of development to becoming cash flow positive.
Top players in the Sector, Canopy, Aurora, and yes, HEXO, are still progressing towards profitability. Becoming EBIDTA positive is a milestone marker that each of these companies need to achieve to prove they are on track to long term success. Canopy is not there, no timeline as to when they will get there. Aurora is not there, again, no immediate timeline on when they will be there. HEXO CEO stated that the company expects to be EBIDTA positve in the first half of their fiscal year 2021. HEXO started their Fiscal year 2021 Aug 1st, 2020 so 6 months out is their objective for that.
Investors coming in now need to realize this and remain patient, it's not a buy for those without patience. The impatient ones will start coming in after the stock starts to run for a number of days or weeks and that brings in more impatient investors.
I'll call that my morning coffee ramble.. haven't done one in awhile.
GLTA
Q
drd8 wrote: They need to get into cbd in the us and or a top brand. Plus products has to be a target. Trading near cash value and have nice sales and solid brand. Mkes no sense.