|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.4233 - 0.4510|
|52 Week Range||0.2177 - 0.6800|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
While it's not the best-known of the pot stocks, Hexo (NYSEAMERICAN:HEXO) is starting to build its reputation. Between fantastic year-to-date performance, a recent uplisting to a major U.S. stock exchange, and a shrewd merger, things are looking up for Hexo stock. There's also a promising venture with MolsonCoors (NYSE:TAP) that gives Hexo credibility and helps elevate it to the big leagues within the pot stock universe.Unfortunately, shareholders buying into the story today may be getting in a little late. The stock is up to more than $6 in just a few months. That, along with dilution from its recent merger has inflated Hexo's market cap a great deal. The company now has a lot to prove in order to justify its stock price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Yield REITs to Buy (Even When the Market Tanks) Hexo Has Huge AmbitionsA lot of marijuana companies are talking a big game about their future plans. More than a couple of the bigger companies seem intent on building global empires. Even by those standards, however, Hexo is shooting for the moon.On the company's most recent earnings conference call, CEO Sebastien St. Louis stated, "Our vision has remained consistent to create a branded consistent on and off cannabis experience across a variety of verticals in a variety of experiences ranging from sleep, to sport, to sex, to diet, to fun."Hexo isn't just aiming to sell marijuana, it wants to change everything ranging from sex to athletics and nutrition. Heady stuff.Furthermore, Hexo either sees the pot market becoming huge. Or perhaps it is planning on a variety of non cannabis things as well. To those ends, St. Louis said, "We intend to become the premiere branded ingredients for food companies not only a top two in Canada, but also top three globally."For comparison's sake, a U.S. leader in the ingredients for food space, Ingredion (NYSE:INGR) has both a market cap and annual sales of around $6 billion. Hexo, by contrast, has a market cap of under $2 billion and sold just ~$10 million of product last quarter. If Hexo can reach the size of a company like Ingredion, it'd be a home run for shareholders. But it has a long way to go to reach that aim. Can Hexo Live up to the Hype?Hexo stock is having a fantastic year. As of this writing, the stock is up 101% year to date. That's incredible on its own. It's even more impressive when you consider that most of the other leading marijuana stocks have been in a bit of a slump lately.We have to ask if Hexo will be able to maintain its hot streak though. As our Vince Martin recently wrote, much of Hexo's recent gains have come from investors discovering the stock, rather than the company's actual accomplishments."The story behind Hexo is gaining a broader reach -- and the Hexo stock price is responding in kind. The question at this point is whether that's a good thing -- and whether a strong YTD is starting to price in at least some of the opportunity here, "Martin wrote.Martin went on to explain how trading volume in HEXO stock has surged. In particular, with the company's up-listing to a major market in the U.S., it has attracted far more activity. But the company will now need to demonstrate that it can live up to its greatly increased share price. Newstrike Deal Looks Like a PositiveOne positive for Hexo, as compared to other marijuana companies, is that it acquired Newstrike Brands (OTCMKTS:NWKRF). Hexo appears to have gotten a great deal, as it paid just a few percent premium to Newstrike's then stock price. Newstrike removes one key limitation for Hexo. Remember that Hexo is based in Quebec and has taken a big lead in French-speaking Canada. However Quebec makes up just 8 million out of Canada's 37 million person population. Newcastle, with its business relationships in English-speaking provinces gives Hexo a major boost in becoming a national rather than just regional player.Additionally, as of Newcastle's latest filing, that company had a large cash position and few liabilities. Combine with Hexo, which recently raised money of its own, and the combined firm will have a great balance sheet with which to pursue further growth opportunities. Hexo Stock VerdictHexo has built itself a bit of a differentiated business model from many of the other large Canadian marijuana rivals. Its focus on both edibles and beverages via the MolsonCoors relationship should give it some cover from steadily sinking marijuana prices in the Canadian recreational marijuana market. And if the company's ambitions come anywhere close to playing out, Hexo stock should be a big winner.On top of that, the company's balance sheet and Newstrike deal should give it a lot of positive momentum through the rest of 2019. The company is looking at going from a revenue run rate that is currently around $40 million to something like four times that next year. Hexo should have some solid earnings releases coming in future quarters.While the company's story is promising, make sure you are comfortable with the risk before buying into Hexo stock at this price. It wouldn't surprise me at all if the stock dipped 20-30% in coming weeks, particularly if the general malaise in the pot stock sector continues.At the time of this writing, Ian Bezek owned TAP and INGR stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Up More Than 100% Already, It's Time to Take Profits on Hexo Stock appeared first on InvestorPlace.
In the world of cannabis stocks, Hexo (NYSEAmerican:HEXO) isn't as familiar to investors as, say, Canopy Growth (NYSE:CGC) is. But if HEXO continues to make smart moves, it won't be long before Hexo stock is a crowd favorite. Despite being under the radar, Hexo has captured the attention of Bank of America analyst Christopher Carey, who recently named HEXO stock his top pick in the cannabis space. Carey has a "buy" rating and a $10 price target on HEXO stock, which closed yesterday at $7.82. He argues that its differentiated products, strong fundamentals, and innovation efforts should propel HEXO stock to double digits by this time next year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks That Are Soaring This Earnings Season Here's why I think he's on the money. A Leader in QuebecThe Quebec market might be considered tiny compared to the Ontario market right next door, but the reality is that Quebec is one of Canada's largest provinces. Hexo is estimated to have 50% of the recreational pot market in Quebec, giving it a virtual stranglehold on that market. "Based on Health Canada data, we estimate HEXO captured ~11 per cent recreational market share between Nov. 2018 and Jan. 2019. This would position HEXO's REC market share amongst the ranks of the industry's largest producers such as Aurora and Aphria, despite supplying only three provinces during the quarter," GMP Securities analyst Robert Fagan wrote in a March note to clients. "In addition, we estimate HEXO's REC market share in Quebec at ~50 per cent over the same period, demonstrating strong execution for HEXO in its core market."At the same time that Fagan wrote this note to clients, he also raised his target price on HEXO by 20% to $10.50 while maintaining his "buy" rating on HEXO stock. So two analysts like the company's strength in Quebec and have given it a double-digit, 12-month price target. No matter what Hexo does from here on out, it will likely always have a dominant position in Quebec, which should help make it consistently profitable, sooner rather than later. The Newstrike StrikeIn March, Newstrike Brands (OTCMKTS:NWKRF) agreed to Hexo's $263 million all-stock acquisition offer. The combined companies' total production capacity of 150,000 kilograms of cannabis annually will help Hexo meet its revenue goal of CAD$400 million by the end of fiscal 2020. All of the cannabis producers have lofty revenue goals for the next two or three years. However, the acquisition of Newstrike, which sells cannabis in five different provinces including its home province of Ontario, has allowed Hexo to become more of a national player. "Our strength in Ontario and English Canada clearly complements HEXO's strong position in Quebec and creates an industry leader," Newstrike chief executive Jay Wilgar said in a statement in March. If HEXO captures a big chunk of Canada's two biggest provinces, the CAD$400 million target could turn out to be conservative. I wouldn't bet your life savings on that happening, but Hexo CEO and co-founder Sebastien St-Louis is positioning Hexo to be one of Canada's leaders in both recreational and medical marijuana. If you own Newstrike stock, don't sell the HEXO stock that you will get once the deal goes through. The Bottom Line on Hexo StockHexo is one of my three favorite pot stocks, along with Cronos Group (NASDAQ:CRON) and Canopy Growth. Between Quebec and the Newstrike deal, HEXO has become a potent competitor in the Canadian market. While others are chasing the U.S. cannabis market, which is already much more significant than Canada's pot market, it's not a bad thing to be a big fish in a small pond. Controlling Quebec and parts of Ontario is a lucrative long-term proposition. However, as many people have said, it is HEXO's existing partnership with Molson Coors (NYSE:TAP) to produce CBD-infused drinks, along with potential future alliances, that has the gereatest potential to boost HEXO stock. After cannabis edibles and CBD-infused drinks are legalized in Canada in October, the competition in the cannabis industry will heat up even further. St-Louis, HEXO's CEO, has already proven that he's ready to take on all comers. HEXO stock might not be the best- known cannabis name, but its future continues to look bright. $10, here we come. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 7 A-Rated Stocks That Are Under $10 * 7 Stocks That Are Soaring This Earnings Season * 5 Biotech Stocks for a Long-Lived Portfolio * 10 Times Apple's Hardware Failed Consumers -- And Hurt Its Business Compare Brokers The post Hexo Stock Is Ready to Reach $10 and Beyond appeared first on InvestorPlace.
The funding was provided by existing investors, including Green Acre Capital, as well as new investors, one of which is licensed cannabis producer Newstrike Brands Ltd (OTC: NWKRF). A year ago, Green Tank conducted a $4.3-million seed round that was led by Green Acre Capital and Casa Verde, Snoop Dogg's venture capital firm.
The consolidation in the cannabis industry continues as Canadian company HEXO Corp (NYSE: HEXO ) and Newstrike Brands Ltd (OTC: NWKRF ) reached an agreement under the terms of which HEXO will buy Newstrike ...