quinlash wrote: HEXO is adjusted EBITDA postive, Canopy is not, Aurora is not, MOST are not, but HEXO is.
Their gross sales set records in the last two reports, net revenue is increasing, debt has been decreasing. Recent deals to acquire Zenabis, 48-North and now Redecan will change things again. Those companies are going to contribute $80+ Million in top line sales each QTR once all the deals are closed. There will be some amount of cost savings as well, apx $30 to $40 combined if memory serves me right. They will contribute some amount of debt as well.
As investors everyone needs to review the numbers to see what they think of it all or can have faith in the Board of Directors are making these moves are going to contribute to the future success of the company within the time period they wish to hold for. Keep in mind, 2021 could be the year where the US progresses legalization, we want the company to be positioned properly for that.
Between now and when HEXO officially moves from #2 to #1 position based on rec sales the shareprice will go up on some days and down on others. Learn to live with it, learn to not shyte your pants when it dips under your average and know when "enough" is when it goes over your average and sell some or all your shares.
Set a plan, trade your plan, don't sell at a loss, not exactly difficult.
Q
quinlash wrote: HEXO, like all (that I know of) Cannabis companies have yet to turn profitable. This includes larger producers such as Canopy Growth and Aurora Cannabis. HEXO has been making progress towards profitability over the prior 1.5 years + (7 QTRs) with record sales in the previous 2 QTR Reports.
HEXO was non-profitable in 2019 when it hit its highs of $44 (post-consodilation pricing).
HEXO was non-profitable when it launched it's highly automated / low cost production Belleville facility that now allows it to produce 35 to 40% margin on products that compete with Black Market on price
HEXO was non-profitable when it launched it's Cannabis infused drinks into Canada and then, afterwards, launched the drinks into the US in 2020
HEXO was non-profitable when it began to expand the operation over seas into Isreal, Germany and now aiming for Poland.
HEXO was non-profitable when it began expansion of the operation throught the purchase of distressed companies such as Zenabis and 48 North in order to expand it's product offering at the lowest cost possible.
HEXO... IMHO... has the highest likihood of turning profitable in a shorter timeline than both Canopy Growth as well as Aurora Cannabis. It is also my opinion that Molson Coors, a fortune 500 company, would not select HEXO Corp for not only 1 but 2 Joint Ventures if it did not have confidence in the Management, the Vision and the future prospects of HEXO Corp.
I strongly suggest doing your own Due Dilligence, setting an investment strategy, a timeline, price targets and adopting some patience as the Cannabis sector develops and HEXO grows into the major player it is certainly aiming to become.
GLTA, God Bless, and Enjoy your Weekend
Q
Long on HEXO