RE:RE:The facts...Hexo acquires Touran77 wrote:
Repeated that many times, but if a SP decline but decline less than sector, those can be seen as good news.
If SP increases, but less than the sector, those can be seen as bad news.
Easy to see if we take the opposite scenario. If all LPs are increasing 10% a day and Hexo is only increasing 2%, does that mean they are announcing good news? No.
Since high of Feb, when comparing with the other major LPs.
Hexo down 80%
Tilray down 81%
Weed down 73%
Since we are close to the 2 above, I will just say that those were pretty neutral news FOR now.
Neutral because they are acquisitions and that means dilution. Market didn't like the dilution news and they are overreacting (and shorter take advantage of the situation) IMO.
For me, doing the calculation, those were great use of capital considering what they bring (just with sales and you can add all the other benefits to that). Especially when you look at use of capital from Tilray/Canopy.
IMO market wants to see real numbers of combined sales (especially that no one knows if market share bleeding in Quebec is really over for Hexo) and real synergies before getting real excited about it.... and don't make mistake, shorters are taking advantage of dilution news to enter in extreme Oversold territory.
Finally when I look at market cap versus Tilray/Canopy, I'm sleeping well at night and one day it might explode.
Might not too, but I don't think it can continue tumbling while the 2 others have billions market cap that can still be lost.
Tonto
What uber BS and this guy really believe what he wrote. The share price is going down the drain and he posts the same kind of things than when the price was at its high. He will hold until the end, brave captain sinking with the ship.