HEXO Equities Warrants Exp 2 Apr 2024 T.HEXO.W.A

RE:RE:RE:This should be interesting to watch

[LTStrategy]

It's no secret that Newstrike was a bad decision.  We all know that, should everyone including mgmt dwell on it and stop making more bold moves or should the cave and act like a beat up puppy dog?  You learn from it and move on.

Here is how people should view this.   They are sitting at a $2B market cap with sales almost at par with Canopy sitting at 11.5B.   Canopy deserve a larger market cap because of their cash.  But if you look at how both are progressing in the last 3 quarters does Canopy deserve an almost 6x valuation?  I don't think so.   Financial markets is full of inequalities and over time those inequalitiy gaps gets corrected.  Either Canopy comes does by half or Hexo doubles medium term.  

so if the auditor reports scares you and you want a perfect reports where there are no improvements to the business recommended by the auditors then sit on the sidelines and wait until they are all corrected.   It will never happen, stock will be at 20B market cap and there will still be improvement recommendations.  This is a simple risk reward scenario, the large returns are when things are small, not perfect but in the works, if you believe they can't execute stay away because the risks are super high.  But if you want the majority of the risk removed and have all the perfect systems in place then by that time the stock will be at $80 and the bulk of if gains will have been had already.  I'm in it to go from 2B to 20B, sounds like you're the type of investor that should wait for it to be at a 15B market cap to sell at 20B market cap so there is lesser risk.   There is nothing wrong with that approach, just a different level of risk tolerance.

I'm a believer they can execute!