RE:RE:RE:RE:RE:RE:RE:RE:4 Canadian Stocks With the Highest Short Interest %HEXO has been winning awards for it's products and their sales increase each QTR, that points to consumers liking the product. I care not what their ceiling heights are as long as they company is making money and continuing to move towards profitability faster than the big names in the industry.
HEXO has a state of the art facility in Belleville, that reduces cost substantially, again, another means to reduce cost going forward
HEXO's UP Brand has some of the highest THC levels in the entire industry and competes with the Blackmarket while contributing to the company's margins of 40% (+/).
As for the headlines on HEXO. There's a new one pending release for yet another new product.
Stop trying to convince yourself that a margin play makes sense when buying the shares is the better option. You can buy back on the lows or deal with your broker when the next time the shareprice runs up to or over $14.
Q
AvInvestor wrote: Because it's not that simple for Hexo.
1) The Gatineau greenhouse facility is a former tomato greenhouse with low ceilings not conducive towards the propagation of Cannabis. Just go on the sqdc website and you will see that most of Hexo's products are 1oz bag with low THC flower being sold in bulk.
2) all other facilities are retrofits and not purpose built with environments dedicated towards growing. Even if the wanted to build one, it would cost $50-60M in cash + 2 years to license and produce. Meanwhile, getting access to Atholville gives you 20% THC right away just by issuing paper. (Atholville is a retrofit as well, but at least is producing descent stuff).
3) again, stop reading the headlines. Even if Zenabis says they're focused on a value line , they're still producing better stuff than Hexo. Hexo can't produce high quality en masse, and has to rely on bulk purchases from smaller LPs.