Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Hexo Continues To Struggle On Road To Profitability

By Investing.com (Brenda O'Farrell/Investing.com)Stock MarketsMar 23, 2021 07:00AM ET
www.investing.com/analysis/hexo-continues-to-struggle-on-road-to-profitability-200568928
Hexo Continues To Struggle On Road To Profitability
By Investing.com (Brenda O'Farrell/Investing.com)   |  Mar 23, 2021 07:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Shares of Hexo Corp (NYSE:HEXO) (TSX:HEXO) continued to trade down early this week after the cannabis grower unveiled its latest earnings result last week that showed an almost $21-million loss on revenues that nearly doubled the previous quarter.

Hexo Daily
Hexo Daily

The latest loss added another quarter the Canadian-based cannabis grower’s list of negative reporting periods. But it was far better than the same three-month period in the previous year, when the Hexo recorded a $298.2-million loss.

On the positive side were revenues. Hexo’s net revenues for the second quarter clocked in at about $32.9 million, almost double the $17 million achieved in the same quarter in the previous year. Yet, investors were not moved to endorse what they saw. Shares of Hexo lost almost 14% the next day, dropping below the level before the latest results were made public.

Canadian analysts only slightly adjusted their price target on Hexo, including CIBC which lowered its target to C$13 from C$13.50. Shares of Hexo yesterday closed at C$8.88 or US$7.06 for U.S.-traded stock.

The latest earnings news comes about a month after Hexo announced a $235-million deal to buy Zenabis Global (OTC:ZBISF) (TSX:ZENA), a small Vancouver-based recreational and medical cannabis supplier that is traded on both the Toronto Stock Exchange and the OTC Markets in the U.S. The purchase was a strategic move to provide Hexo with an entry into the European market, as well as bolster its holdings in Canada.

Trulieve Deal: Part Of Company’s Small, But Steady Expansion

Shares of Florida-based Trulieve Cannabis (OTC:TCNNF) continue on their steady march upward while the company progresses with its expansion outward.

TCNNF Daily
TCNNF Daily

The company on Monday announced it will acquire Mountaineer Holding LLC in a cash-and-stock deal that will give Trulieve an entry into the West Virginia market, a new medical marijuana state, as well as a cultivation and processing plant in Massachusetts.

Valued at only $6 million, the deal is far from the multi-billion-dollar consolidations that cannabis sector has become known for, but it is in keeping with Trulieve’s steady inch-it-along approach to growing its business. The result has contributed to Trulieve emerging as a solid powerhouse performer.

Its stock yesterday closed at $49.77, down 1.29% on the day. In the past year, however, it has gained a whopping 670%.

The latest deal gives Trulieve facilities and licensing in Massachusetts and West Virginia, adding to its existing operations across Florida, California, Connecticut and Pennsylvania.

“West Virginia just became a lot more interesting with the addition of a cultivation permit asset to our processor and dispensary application wins,” said Trulieve CEO Kim Rivers.

CBD Market Expands

The CBD market keeps getting bigger, and gaining a loyal consumer base.

According to the latest figures released by New Frontier Data, an independent analytics firm specializing in the global cannabis industry, consumer spending on CBD, a cannabidiol derived from cannabis and hemp, reached $3.8 billion in 2020.

The substance is gaining acceptance by consumers to help alleviate a long list of conditions, from anxiety to inflammation.

According to New Frontier, 41% of Americans CBD consumers surveyed use it primarily for pain, while 33% use it to lessen anxiety. The survey showed that just over half of Americans surveyed reported having a friend or family member who regularly consume CBD.

Hexo Continues To Struggle On Road To Profitability
 

Related Articles

Hexo Continues To Struggle On Road To Profitability

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
james mcculloch jr
james mcculloch jr Mar 23, 2021 12:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
about as much as you struggled to come up with the title of your opinion seen here.... good job brenda...wtg!!!! how much do you get paid to write this non sense.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email