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Congress will be voting Wednesday on a repeal of what is known as the “Cadillac Tax," which is a provision of the Affordable Care Act that would place a 40% tax on employer-sponsored health care plans that provide excess benefits. Yahoo Finance's Anjalee Khemlani breaks down what the provision does and what could come from the vote.
FT premium subscribers can click here to receive Due Diligence every day by email. One thing to start: on Friday next week our friends at FT Alphaville are putting on what they say is an ‘experimental theatrical journalism experience’ in London. Pamela Anderson has helped to promote the event.
For Anheuser-Busch InBev’s deal-hungry chief executive Carlos Brito, the initial public offering of its Asian business held out a beguiling prospect. The almost $10bn that the world’s biggest brewer hoped to raise would help foot some of the bill for a decade-long acquisition spree.
The market just didn't agree with the valuation the giant brewer tried to put on its Asia Pacific unit, Budweiser Brewing Company APAC.
In one fell swoop, Curaleaf (CURLF) upset the balance in the cannabis sector. The U.S. multi-state operator (MSO) announced today an $875 million acquisition of Grassroots that promises to change the balance of power in the U.S. and around the globe. Without the rich valuations, Curaleaf or other MSOs remain attractive investments as market leaders that aren’t valued that way.GrassrootsCuraleaf is spending ~$875 million to acquire GR Companies that owns Grassroots. The deal includes 102.8 million shares and ~$115 million in cash.Grassroots has a portfolio of 61 dispensary licenses and 17 cultivation facilities. The company has 20 dispensaries in operation now and provides Curaleaf with substantially more access to big cannabis markets like Illinois and Pennsylvania. As well, the deal provides access to new markets in Arkansas, Michigan, North Dakota, Oklahoma and Vermont.After the merger, Curaleaf will have a massive 131 dispensary licenses, 68 operational locations, 20 cultivation sites and 26 processing facilities. In total, Curaleaf will expand operations to 19 states from only 12 now.For Q1, Grassroots had $12 million in revenues and the Curaleaf pro-forma revenues were an incredible $87 million. The company lists itself as the market leader by revenues, but the other companies aren’t listed based on pro-forma numbers. In this case, Curaleaf includes both Grassroots and Select deals that aren’t approved yet.(Source: Curaleaf presentation)The important part of the story is that Curaleaf will have market access to 177 million people now. A lot of the Canadian LPs only have access to slightly below 40 million people in Canada and have looked to expensive global expansion to make up for the lack of domestic consumers.Market ValueThe more important story than whether Curaleaf has a larger revenue base is the comparative market valuations. The U.S. MSOs have offered the best valuations with Curaleaf having a proposed market valuation of $4.5 billion and a Q1 revenue run rate of $350 million with tons of growth ahead. The U.S. stocks trade at 10x trailing revenues while the Canadian companies trade at 10x forward revenues.Curaleaf will have the largest U.S. market valuation, but the market leaders in Canada still have market values 2-3x that of the U.S. companies. As Cresco Labs (CRLBF) and Harvest Health (HRVSF) close acquisitions, the stock market will start seeing the value in the U.S. companies.(Source: Curaleaf presentation)As a stand-alone company, analysts were forecasting revenues topping $700 million in 2020. These combinations should push Curaleaf estimates far in excess of $1 billion in annual revenues and push the 2021 numbers towards $1.5 billion and possibly even close in on $2.0 billion.Eventually, federal legalization will allow for these stocks listing on major U.S. stock exchanges that will boost market valuations. The merged operations will provide cost synergies and brand benefits that will further allow Curaleaf and other large MSOs to stand out in a crowded market.TakeawayThe key investor takeaway is that Curaleaf is building a cannabis market leader without the related rich market valuation typical of fast-growing markets. As these large domestic cannabis deals close over the next year and the MSOs gain market size and brand recognition, the stock valuations will eventually flip with the Canadian LPs.The stock is up 17.5% on the news and more gains are ahead for Curaleaf.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here.Disclosure: No position. Read more: Why It’s Time to Become Bullish About Curaleaf More recent articles from Smarter Analyst: * Organigram (OGI) Reported a Strong Quarter, But Don’t Buy the Stock Just Yet * Last Minute Thought: Buy or Sell Netflix (NFLX) Stock Before Q2’19 Earnings? * Is It Finally Time to Go Long NIO Stock? This Analyst Remains Sidelined * Rosenblatt: Buy AMD Stock Ahead of Q2 Earnings and Toss Aside Intel (INTC)
Cannabis stocks were mostly higher Wednesday, with Curaleaf leading the pack after announcing an $875 million stock-and-cash deal that will help it expand into new states, including Illinois.
While Congress and activists met for the first time to discuss ending marijuana prohibition in the United States last week — there was plenty of “disagreement and debate,” reported Marijuana Moment — all signs continue to point toward federal legalization remaining a ways away. Conducted by YouGov, the poll represents a “clear and growing appetite” for reforming drug laws in the UK, says the Conservative Drug Policy Reform Group, which commissioned the study. The poll shows a vast majority support medical marijuana legalization in the UK (77%).
From a capital appreciation standpoint, Exxon Mobil (NYSE:XOM) stock has been a disappointment. Over the last decade, the XOM stock price has gained 12.5%. During that period, Exxon Mobil stock has badly lagged the S&P 500, which has returned a sizzling 223%.Source: Shutterstock But for investors focused on income, XOM actually hasn't been a terrible play. Exxon Mobil's dividends have more than doubled from a total of $1.66 per share in 2009 to what should be $3.48 in 2019. Investors' total return from Exxon Mobil stock has averaged 4.3% per year. * 8 Penny Stocks That Have Fallen From Grace That's still disappointing, since the S&P 500 has returned almost 15% annually, including dividends. But it's not terrible in an environment in which U.S. Treasuries have yielded less than 3% most of the time.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWe're still in that environment, with the 10-year Treasury yielding just 2.1%.It's true that buying a stock just for its yield can be very dangerous, as previous income darlings like General Electric (NYSE:GE), Kraft Heinz (NASDAQ:KHC), and Anheuser-Busch InBev (NYSE:BUD) all have cut their dividends recently.But Exxon Mobil doesn't have the debt problem those companies did (and still do) have. And while XOM stock has exposure to crude oil prices, it also uses a hedge to protect its profits. As a result, XOM stock price probably won't fall below $70 for long. And that makes XOM stock, currently at $75.50, an interesting play for income-focused investors in general and value-oriented, income-focused investors in particular. Why $70 Is a Key Level for XOM Stock PriceXOM hiked its quarterly dividend to $0.87 in May. That, in turn, suggests that investors are receiving $3.48 per share of XOM stock annually. And so, if the XOM stock price reaches $69.60, the stock would offer a yield of exactly 5%.It's difficult to see Exxon Mobil stock consistently yielding more than 5% for a few reasons. First, that type of yield is noticeable and usually not offered by relatively safe stocks. Of the Dow Jones Industrial Average stocks, only Dow (NYSE:DOW) and IBM (NYSE:IBM) offer higher yields. Both companies have real challenges (Dow is facing cyclical pressure and IBM has long-running growth problems).In the S&P 500, there are 35 components with higher yields. All have warts, among them AT&T (NYSE:T) and its debt load and Altria (NYSE:MO) which is facing concerns about long-term demand for its products.The second reason is that, historically, XOM stock has hardly ever yielded 5%. Its yield peaked at 5.5% during the 1987 market crash and touched 5% a few times through the early 1990s.But that was a very dark time in the crude oil markets, which had crashed after their early 1980s boom. Meanwhile, interest rates were much, much higher; investors could get 7% to 9% yields from10-year Treasuries.Without that alternative, a 5% yield from XOM stock is going to look very attractive. Indeed, in late May, as XOM and other oil stocks sold off, XOM stock bottomed just above $70. A bounce in crude prices helped, but it's likely that at least some investors saw the yield nearing 5% and pounced. Exxon Mobil Stock Is Safer Than It AppearsOf course, the question is whether Exxon Mobil stock really is safe. A 5% yield - or even a 4% yield - is attractive in this market. But what happens when crude prices plunge?The answer is that XOM's earnings will decline, but in a mostly manageable fashion. As I've written before, Exxon Mobil's "downstream'" operations - notably in refining - and its chemicals business provide an internal hedge. That's why XOM stock actually is a poor play on oil prices. But it's also why XOM stock didn't fall that far when the shale bust hit in 2016 - and why the company was relatively unscathed during the fourth quarter of 2018, which was disastrous for many oil and gas companies.If oil prices rise, XOM's upstream business will thrive and its downstream business will take a hit. When oil prices fall, the reverse is (usually) true. Despite this hedge, the XOM stock price is boosted by higher crude prices, as seen in 2014 when XOM stock hit an all-time high. But even amid a plunge in prices two years later, Exxon Mobil's dividend continued to rise,.XOM stock isn't risk-free. But Exxon's earnings easily cover the current dividend of XOM stock. The odds of XOM executing a GE-style dividend cut are slim, even with crude and natural gas prices relatively low. And this is an environment where, as I noted just last week, investors usually have to stretch for yield. If XOM is yielding 5% and 10-year Treasuries have a 2.1% yield, many investors are going to buy XOM stock. The TradeFor income investors, then, XOM looks reasonably attractive at $75.50. Its valuation is reasonable, at 14.4 times analysts' average forward earnings estimate. And XOM still looks poised to deliver further growth, as its CEO, Darren Wood, last year set a target of doubling the company's earnings by 2025.For traders, there's an intriguing option trade to be made as well. A bull put spread at $70 (selling the $70 put and buying a lower-priced put for protection) can offer double-digit returns or better, depending on the expiration date. That's essentially a bet that the XOM stock price won't be under $70 at expiration, which seems a nice bet to make at the moment.But there are some risks facing XOM stock at the moment. The U.S. presidential election could pressure XOM stock if a "green" Democrat was to win or even starts to gain momentum. A plunge in oil prices is another risk: Exxon Mobil does have hedges, but XOM stock still fell when crude collapsed in 2016.But there's risk everywhere when the market is at all-time highs, particularly for income investors. Getting a 4%+ yield from Exxon Mobil stock is one of the better risk-reward options out there at the moment. And that's precisely the point: investors aren't going to let a yield above 4% last for long. XOM stock isn't going to be the biggest gainer in the market over the next six months or the next three years. But, at the right price, it's an attractive dividend play.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Why $70 Looks Like a Floor for Exxon Stock appeared first on InvestorPlace.
With new products, untapped markets, and better access to research and capital than ever before, the cannabis market is in the midst of another record-breaking year of growth. Overall, 2018 was a groundbreaking year of growth for the cannabis market.
The cannabis industry is starting to change on the production side of the business, as a few companies, such as Aurora Cannabis (ACB), are starting to not only grow revenue, but are approaching positive EBITDA as they do so.While I don't think this is going to be a big catalyst for Aurora in the very near term, over the next few quarters, if it performs in alignment with guidance, it's going to be a huge advantage over its competitors, who continue to struggle to grow revenue while reducing costs.In this article we'll look at why this is likely to attract a lot more interest from institutional investors going forward, and why it could surprise to the upside over the next year or so.Revenue vs. earningsFor some time I've been persuaded that revenue will be the key metric to watch for cannabis producers. Those that prove they can grow sales show they have the capacity to supply growing demand. That ensures a steady flow of revenue, which when consistent, should eventually lead to lower costs on scale and becoming more efficient.If companies aren't growing sales, cutting costs becomes an exercise in futility because market demand for cannabis has a long way to go before being satiated. Selling a relatively small amount of pot as a profit isn't going to attract the interest of investors for a prolonged period of time.While I maintain my thesis that revenue is the key catalyst to watch in the near term, I am starting to believe that companies that are able to maintain sales growth and do so at a profit, are going to attract the most investor interest, and their value will increase.Aurora Cannabis is uniquely positioned to do just that, and if it delivers on its guidance for profitable EBITDA in the current quarter, it should result in its valuation jumping significantly, along with its share price.Its major competitor, Canopy Growth on the other hand, continues to grow revenue, but in the latest quarter, it resulted in an adjusted EBITDA loss in the fourth quarter of C$93 million, or about US$74.5 million. That's far beyond any EBITDA losses of its competitors, which are also spending on domestic and international expansion.When asked about that, CEO Bruce Linton said that "it does dwarf our peers and it all comes back to the war chest that we talk about which we think is going to turn into a competitive advantage over time as we're building this global scale."Canopy Growth does like to wave its $4 billion plus on its balance sheet like a magic want before the market, but the reality is Aurora Cannabis has been able to land great partnerships and acquisitions without the money.The company has also rapidly expanded at a pace internationally far beyond Canopy Growth, and is doing so while continuing to lower costs.Profitable expansionAurora is on pace to boost production capacity to about 625,000 kilograms a year by early 2020. There will be some lag time there as the company goes from seed to harvest in the available facility space, but in the relatively near future the company is going to far exceed all its competitors on how much cannabis it can supply to the market.Considering the higher margin products becoming legal in Canada, the increasing revenue coming from higher-margin medical cannabis, the low production cost per gram of $1.42 as of the last reporting period, and rising overall sales, it's easy to see that Aurora Cannabis is close to separating itself from its competitors in a big way.Assuming Aurora can sell the enormous amount of inventory it'll soon have available to it, its numbers are going to shoot through the roof.ConclusionAurora Cannabis has been able to do rapidly increase revenue, lower costs, and expand internationally, without having to give up control of a large part of its company, or seat board members that may or may not align with their business model and strategy.Management has guided for positive EBITDA in this quarter. But even if it were to slightly miss and it takes another quarter to reach that outcome, the company is poised to be profitable in a very short time while it's rapidly growing revenue.As the cannabis market continues to grow on a global basis, it also has available holdings to increase capacity to over 800,000 kilograms annually by my estimates, and possibly beyond 1 million kilograms a year if demand warranted it.Based upon the approximate 625,000 kilograms a year the company will be producing starting in early 2020, it has the flexibility to use its product to sell, research, extract, or apply to whatever segment it needs, without sacrificing revenue.For these and other reasons, I still consider Aurora Cannabis to be the top cannabis company on the production side of the cannabis business.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Disclosure: The author is Long ACB.Read more on ACB: * Aurora Cannabis (ACB) Is Firing on All Cylinders * Aurora Cannabis: Great Prospects… That Are Fully Priced Into the Stock Already * Don’t Jump on the Bandwagon for Aurora Cannabis (ACB) Stock * Aurora Cannabis Stock Set to See Big Gains, Says Analyst More recent articles from Smarter Analyst: * Organigram (OGI) Reported a Strong Quarter, But Don’t Buy the Stock Just Yet * More Gains Ahead for Cannabis Stock Curaleaf * Last Minute Thought: Buy or Sell Netflix (NFLX) Stock Before Q2’19 Earnings? * Is It Finally Time to Go Long NIO Stock? This Analyst Remains Sidelined
Depressed and drifty … that's how most investors would probably describe the cannabis stock sector of the past couple of months. It's a slow summer for marijuana stocks, but you don't have to catch the summertime blues in your quest for tomorrow's big weed winner. While everybody and their uncle is mesmerized by the more expensive Canopy Growth (NYSE:CGC) stock, I'd like to turn your attention to Aphria (NYSE:APHA), whose ambitious plans could bring newfound prosperity to today's patient shareholders.Source: Shutterstock For a well-known asset listed on the New York Stock Exchange, Aphria stock is surprisingly affordable and could easily fit into practically anyone's budget. Don't be tricked into thinking that cheap means low-quality, though, as APHA has a $1.68 billion market cap and plenty of trading volume, to the tune of several million shares traded daily.Still, APHA shares are "cheap" in that they're a good value right now. Aphria stock is much closer to its 52-week low of $3.75 than its 52-week high of $16.86, indicating that APHA is capable of going much higher and is probably just weighed down by overall sector weakness.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Planting the Seeds of GrowthAphria's Interim CEO, Irwin D. Simon, has big plans for the company, which I believe will be reflected in the price before the year is over. For instance, Simon just announced the launch of Aphria's new social impact platform, Plant Positivity. In this program, Aphria will partner with Canadian non-profit Evergreen to create six new garden spaces this summer at the Evergreen Brick Works in Toronto. * 10 Monthly Dividend Stocks to Buy to Pay the Bills Aphria's financing will add more than 50 varieties of native plant species to the existing 8,000 square meters of gardens at Evergreen Brick Works. There are also plans under way to develop a similar garden space in Leamington, Ontario with a local community partner.This initiative is sure to provide positive public relations for Aphria, and just as importantly, it will promote the vision of enhanced education and access to plants within the community. In the words of Aphria's interim CEO:"Finding ways to give back and fostering stronger, healthier communities everywhere Aphria operates is the core of who we are … Through … [this program], we hope to make a meaningful impact on people's lives." Plenty of Ambition to Go AroundAs a prospective investor, however, I don't just want to feel good about a company; I'm looking for serious sales growth. In that regard, Interim CEO Simon is aiming for the skies with a plan to achieve one billion Canadian dollars in sales by the end of 2020.How will Aphria achieve this lofty goal? CFO Carl Merton stated that the company is adding more processing capabilities, and the company intends to expand its cannabis cultivation capacity from 115,000 kilograms to 255,000 kilograms. Along with this, Simon claimed that the global cannabis market has the potential to reach $150 billion, including both medical and recreational cannabis. I Like These NumbersPersonally, I view the company's optimism as a good thing; Seaport Global's Brett Hundley seems to echo my bullish outlook, as he's maintaining a "buy" rating on Aphria stock, along with $13 price target -- nearly double the current share price.Moreover, Hundley has published recent sales estimates for fiscal year 2020 at C$520 million, followed by C$851 million for fiscal year 2021. That's what I call a clear road map to Simon's billion-dollar goal -- and a perfect catalyst for the next leg up in the APHA stock price. The Bottom Line on Aphria StockThere's absolutely no need to feel down or dreary this summer, even if you're a cannabis stock watcher. Soon enough, I sense a sizable move coming in Aphria stock -- if even a fraction of the company's big plans come to fruition, there will be no shortage of green to go around.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Why Aphria Stock Will Be the Next Billion-Dollar Pot Behemoth appeared first on InvestorPlace.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
What is going on with the cannabis space? Seemingly every stock in the group is getting sold lower, including Cronos Group (NASDAQ:CRON). In fact, what's even more interesting is the way that they're all selling off. CRON stock and others are positioning in a similar bearish setup.Source: Shutterstock It's drawing questions from observers as to why the industry is under such pressure. The inquiry becomes even more pressing as the Dow Jones, S&P 500 and Nasdaq are hitting new highs on a seemingly daily basis.How can equities be at a high while cannabis stocks are scraping multi-month lows?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Breaking Down Cronos Group StockThere are dozens of cannabis stocks investors can consider -- that goes for almost any industry. And like any other sector, there are good companies and not-so-good companies to choose from. Luckily for Cronos stock, it is a good company. But that doesn't seem to matter right now, and that's because of the fundamentals.You see, even though CRON stock runs a good operation, this company has a $4.7 billion market capitalization and had just -- wait for it -- 6.5 million CAD in sales last quarter. This was up an impressive 120% year-over-year, but is a very small revenue number given its valuation. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip The company turned a pretty strong profit for the quarter, earning more than 400 million CAD. How's that possible on 6.5 million CAD in sales? CRON generated a non-cash unrealized gain of 436.4 million CAD on the revaluation of derivative liabilities.The cannabis space is a land grab right now. And the ones with the cash get to grab the most assets. Canopy Growth's (NYSE:CGC) big bank account was infused by Constellation Brands (NYSE:STZ). But now CRON stock can throw its hat into the ring, after it closed a $2.4 billion investment from Altria (NYSE:MO) in the most recent quarter.Now its balance sheet is strong, even if its income statement remains unimpressive. This vault will be important down the road. Earlier this month, Stifel analysts said the cannabis market could hit $200 billion in the next decade. That's up from $8 billion in 2018.The bottom line: you might look at the revenue underlining Cronos stock and question all the hype. But with more than $2.4 billion sitting in cash and making up half the market cap, it commands some respect. Trading CRON StockSo, did CRON stock just become a big-time sell? Not yet, but it could be soon. Aurora Cannabis (NYSE:ACB) is breaking down, while Canopy plunged through support. Both stocks were setting up as a descending triangle, a bearish technical development.Cronos stock isn't looking healthy, either.After falling hard on Friday and closing below the 200-day moving average, shares rebounded 4.5% on Monday. The stock closed just above this key moving average on Monday, but only by a dime. It's not clear whether Cronos stock will reclaim this mark or find it as resistance. Click to EnlargeBut that doesn't really matter because we know two things now. One, $14 support is a must-hold level. Unlike ACB, CGC and other cannabis plays, CRON stock is still clinging to its support level. Below $14 puts the June lows of $13.51 on the table, as well as the 61.8% retracement for the one-year range at $13.06.Below that and there's no immediate support level to lean on.The other thing that's clear? In order for Cronos Group stock to look healthy on the long side, we need to see it clear the $15 to $15.50 area. Over the past few months, $15.50 has been a relevant level, while both the 20-day and 50-day moving averages are trading in this range.It's a bit early to say Cronos Group stock is doomed, but it's not looking healthy as the industry draws in sellers. I'd rather wait for CRON stock to have the wind at its back than buying now and hoping support holds up.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Did Cronos Group Just Become a Big-Time Sell? appeared first on InvestorPlace.
AbbVie (ABBV) has been upgraded to a Zacks Rank 2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Massachusetts-based cannabis company Curaleaf Holdings Inc. said Wednesday it was buying multi-state operator GR Companies Inc. in a deal valued at $875 million in cash and stock. Under terms of the deal, Curaleaf will pay $75 million in cash and provide 102.8 million subordinate voting shares and $40 million worth of shares. The acquisition, which is expected to close in early 2020, will increase Curaleaf's presence to 19 states from 12, including Illinois, which legalized adult-use cannabis in June. The combined company will have 131 dispensary licences, 68 operational locations, 20 cultivation sites and 26 processing facilities. Curaleaf's U.S.-listed shares have tumbled 35.1% over the past three months, while the ETFMG Alternative Harvest ETF has lost 11.7% and the S&P 500 has gained 3.6%.
There will always be naysayers in the sphere of stock market investing, especially when it comes to cannabis stocks. This is true for the bigger names like Canopy Growth Corp (NYSE:CGC) and Aurora Cannabis (NYSE:ACB). And it also applies to today's spotlight name, Hexo (NYSE:HEXO). But does Hexo stock deserve its reputation as a volatile, dangerous investment?I won't deny that Hexo Corp stock is a speculative play. But I wouldn't consider it any more dangerous than the broader cannabis market. You're either a believer in marijuana stocks or you're not. And if you can handle some risk, then Hexo stock could be your ticket to surprisingly impressive returns.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Too Legit to QuitOnce they were marginalized companies, but Canopy and Aurora have since transitioned from thinly traded over-the-counter markets to the major exchanges. In turn, this emboldened other cannabis up-and-comers to likewise move to the bigger exchanges.Hexo would be a textbook example of this. They're now being promoted from the much smaller NYSE American exchange to the New York Stock Exchange. Hexo Corp stock owners shouldn't experience any negative impact. Further, the ticker symbol of HEXO will remain the same. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip CEO and co-founder Sebastien St-Louis rejoiced in this headline-making move. He commented that Hexo Corp is "extremely pleased to list on the NYSE and believe it reaffirms HEXO's strong track-record for exceptional corporate governance and is further proof that we are a valuable cannabis industry partner for Fortune 500 companies."I'd affirm that just like Canopy and Aurora, Hexo deserves to play on the same field as other major-league batters. One of the biggest licensed cannabis companies in Canada, Hexo Corp serves both the adult-use and medical-use Canadian markets through a multitude of popular brands. A Historic First for Hexo Corp StockLest we forget, this once under-the-radar company generated huge headlines. Hexo was the first major cannabis producer to ink a deal with a brand-name beverage company. Moreover, it did so with the explicit purpose of developing and manufacturing cannabis-infused beverages. In a landmark agreement with Molson Coors Brewing Company (NYSE:TAP), Hexo moved even faster than Canopy to map out a definitive plan to bring cannabis-enhanced drinks to the public.And it's not just about beer, as the two companies are also considering cannabis-infused water and hot beverages. According to Molson Coors president and CEO Mark Hunter, the total cannabis market in Canada is approximately valued between $7 billion to $10 billion. Within that figure, beverages account for anywhere from 20% to 30% of the total, or as much as $3 billion. That's a massive untapped (pardon the pun) market for Hexo stock. A Major AcquisitionIn what I believe to be a game-changing expansion, Hexo Corp acquired what was one of my favorite cannabis companies this year, Newstrike Brands, for around $197 million. In so doing, Hexo added another 470,000 square feet of licensed indoor cultivation space. Keep in mind it already has an expansive 1.31 million square feet of grow space.Moreover, Hexo will now have access to the numerous provincial deals which Newstrike already had in place. Altogether, Hexo's management expects the Newstrike acquisition to yield 400 million CAD in net revenues by the year 2020. The Bottom Line on HEXO StockI'm looking forward to watching the cannabis-investing community bid the HEXO stock price up through the end of this year. And probably the party will continue well into next year.If you're in the pot game, don't sleep on Hexo stock: this could be the company to bring legalized cannabis to the masses.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 3 Reasons Why HEXO Stock Is the Real Deal appeared first on InvestorPlace.