RE:RE:RE:RE:RE:RE:4 Canadian Stocks With the Highest Short Interest %AvInvestor - (4/25/2021 10:41:20 PM)
RE:RE:RE:RE:RE:4 Canadian Stocks With the Highest Short Interest % In Hexo's case - check the financials. Yes, NET sales increased slightly from $29 million in Q1 to $32 million at Q2/Dec 31 - but inventory went from $75 million to $82 million for the same period.
Hexo sales are not keeping up - they're growing too much.
So what does Hexo do - go buy Zenabis.
You still don't get it. Hexo is growing poor quality mid THC that is not selling. That's why their sales are not keeping up with inventory. Atholville is at least producing descent stuff.
It's all in the numbers. Listen to the consumers and not the headlines. Very few consumers like Hexo.
Well, here's a number - $235 million purchase price - for Zena that plants .50 per cent of it's available sq ft - and does so - according to their presentation because that's sufficient to meet market demand.
And yes - if the consumer doesn't like Hexo products that's a big problem, but the entire Canadian market palce is over supplied, it's not just because of poor quality.
Zena has annual revenues of $60 million - with a net loss, how many decades will it take Hexo to recover their investment - if they ever do?
And as discussed before - Zena targets the 'value' market, not the high end quality market.
Why would Hexo just not work on improving it's own quality?
Are you saying Hexo bought Zena for better quality? Zena produces 'value' brands - regardless, Zena's annual sales are $60 million - how much