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Tag: HEXO News

  • Morning Feast: 3 Stocks We Like for Tuesday

    Morning Feast: 3 Stocks We Like for Tuesday

    On November 30, American stock indices closed in negative territory. The S&P 500 index fell 0.46% to 3622 points, the Dow Jones lost 0.91%, the NASDAQ fell 0.06%. The month ended with profit taking in cyclical sectors and capital flow into growth stocks. The tech sector looked strongest, adding 0.66%. The correction in the energy sector intensified amid the uncertainty surrounding the OPEC + meeting, and it lost 5.37%.

    The agreement between Nikola (NKLA: -27%) and General Motors (GM: -2.7%) disappointed investors, as it does not include GM investments in Nikola’s business.

    S&P Global (SPGI: + 3%) and UK-based IHS Markit (INFO: + 7.4%) have announced a share swap merger. The volume of the transaction will amount to $ 44 billion.

    Currently, global stock exchanges are showing positive dynamics. On the eve, the final data on the effectiveness of the antikovid vaccine from Moderna, which was estimated at 94.1%, were presented. The company has applied for an emergency review of its drug with the FDA. After the close of the main session the day before, the American regulator set the date for the meeting of the special committee for December 17. Market participants are awaiting vaccine approval from both Moderna and Pfizer in December. In addition, they estimate that about 40 million doses, enough to inoculate 20 million people, will be available by the end of the year. This supports the positive sentiment in the markets. Note, however, that optimistic expectations regarding an early start of vaccination have been maintained since October, so their influence on the dynamics of trading is becoming more limited.

    US Treasury Secretary Steven Mnuchin and Fed Chairman Jerome Powell will deliver their presentations to the Senate Banking Committee today. Mnuchin is expected to reiterate the proposal to channel $455 billion in unused funds under special lending programs for fiscal stimulus. It is not excluded that the hope that a small package of economic support will be adopted before the inauguration of the new president will again act as a factor of optimism. However, major disagreements between Democrats and Republicans remain on this issue.

    Asian stock markets closed in the green. Japan’s Nikkei rose 1.34%, China’s CSI300 rose 1.60%, and Hong Kong’s Hang Seng climbed 0.86%. European indices are trading in positive territory. EuroStoxx 50 adds 1%.

    Vague appetite for risk. The 10-year Treasury rate rises to 0.85%. Brent oil futures are rising above $ 48. Gold rises in price to $ 1790.

    ISM Manufacturing PMI for November is due today. The indicator is expected to decrease from 59.3 in October to 58.0. The worsening epidemiological situation harms production to a much lesser extent than in the spring, since local restrictions apply only to the service sector.

    Today Top Movers

    NIO Limited (NIO) reported gain of +3.21% in premarket session on Tuesday after revealed its November 2020 delivery results.

    Smart EV firm Xpeng Inc. (XPEV) is up +7.90% in early morning session on Tuesday following the declaration of its vehicle delivery results for November 2020.

    In Tuesday’s pre-market session Hexo Corp (HEXO) surged +15.18% in its share price and the firm recently revealed that it will participate in the Cowen 2020 Boston Cannabis Conference on Wednesday, December 2, 2020.

    Top Upgrades & Downgrades

    Barclays turned bullish on FedEx Corporation (FDX) , upgrading the stock to ” Overweight” from “Equal-Weight ” and assigning a $360.0 price target.

    Evercore Partners Inc (EVR) has won the favor of Keefe, Bruyette & Woods’s equity research team. The firm upgraded the shares from Market Perform to Outperform.

    Earlier Tuesday B of A Securities its rating on BioNTech SE (NASDAQ:BNTX) stock to Neutral from Buy. With shares trading at around $126.63, the Wall Street firm thinks BioNTech ‘s stock could gain more than 1.92%.

    Barclays analysts reduced their investment ratings, saying in research reports covered by the media that its rating for Appian Corp (APPN) has been changed to Underweight from Equal-Weight.

    Analysts at RBC Capital downgraded IHS Markit Ltd. (INFO)’s stock to Sector Perform from Outperform on Tuesday.

    Latest Insider Activity

    Kandi Technologies Group Inc. (KNDI) Director Wang Lin announced the sale of shares taking place on Nov 25 at $15.00 for some 1,000 shares. The total came to more than $15000.0.

    Slack Technologies Inc. (WORK) Chief Technology Officer Henderson Cal sold on Nov 25 a total 96,155 shares at $30.99 on average. The insider’s sale generated proceeds of almost $46485.0.

    Onconova Therapeutics Inc. (ONTX) Chief Financial Officer Guerin Mark Patrick declared the purchase of shares taking place on Nov 27 at $0.26 for some 4,614 shares. The transaction amount was around $1200.0.

    Coty Inc. (COTY) Director Singer Robert S bought on Nov 27 a total 362,482 shares at $6.80 on average. The purchase cost the insider an estimated $34,000.

    Earnings To Watch Today

    Top US earnings releases scheduled for today include Lufax Holding Ltd (NYSE:LU) . It will announce its Sep 2020 financial results. The company is expected to report earnings of $0.14 per share.

    Analysts expect salesforce.com inc. (NYSE:CRM) to report a net income (adjusted) of $0.75 per share, when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Oct 2020 is predicted to come in at $5.25B.

    ReneSola Ltd (SOL) , is due to announce earnings after the market closes today. It expected to report revenues of $9.9M in recently concluded three-month period.

  • HEXO Corp. (HEXO): A Potential Long-term Investment Opportunity

    HEXO Corp. (HEXO): A Potential Long-term Investment Opportunity

    Hexo is trading around the $1 mark and has the momentum that can be quite worthy for the investors if they go long-term, considering the swelling cannabis market.

    The increasing growth of the marijuana market has turned out to be blooming for the cannabis stocks. Hexo Corp. (HEXO) was part of the recent boom in cannabis stock following Biden win and vaccine news.

    Hexo has surged over 18% during November following the legalization of marijuana in four new states. As of today, the stock had soared up to 20% as it trades in day’s range of $0.8801 – $1.0100. HEXO was trading at $0.97 at 12:17 A.M EST, up by 11%.

    The use of cannabis for different health purposes has increased the demand for the product in the medical sector. Especially, the serious mental health issues reported during the pandemic have played a pivotal in growth of cannabis demand. Reportedly, around 91% of cannabis usage was increased for mental health purposes during the COVID-19 pandemic.

    The impact of the increasing demand can be seen in cannabis stock’s growth and their quarterly results. Hexo’s fourth quarter revenues spiked by 76% compared to the prior year. Considering the future of cannabis market and increasing demand, investors have a great opportunity to buy HEXO for under $1 per share. The stock seems an appealing long-term investment with its solid gross margins, Belleville facility’s potential, and improving internal process efficiency.

    Strong Fourth Quarter Results

    Looking at the profitability of Hexo, it was a drastic experience for the company widening its net loss to 276% Year-over-Year. But, investing in a stock for a longer term we need to look at broader aspects.

    Hexo’s loss in Q4 was due to its primarily attributable to a massive impairment loss. This loss has a hefty impact on profits and verifies that its inventory valuation is more realistic. Impairment formed around 71.5% of the operating expenses in Q4. With the addition of an impairment charge of approximately $200 million, the loss would be much lower.

    On the contrary, Hexo recorded an increase of 76% in consolidated revenues compared to $27.1 million in the same quarter last year. Revenues showed strong growth despite the pandemic impact and lockdowns.

    Another key aspect; Hexo’s net revenue per gram surged from $2.95 to $2.22. In addition, the adjusted EBITDA of ($3.25) million should break-even by the first two quarters of 2021. Also, the gross margins were impressive at 42%, excluding revenues from adult-use beverages.

    Hexo has working capital of $223 million, including $184 million in cash. Whereas, it improved the net cash and cash equivalents by 95% from the prior quarter.

    The company’s topline results growth in Q4 2020 reflects the advancement of Hexo’s 2.0 products and its ongoing performance. The high-quality products keep on attracting more customers for the company.

    The Potential of Truss Project

    In 2018, Hexo Corp. (HEXO) collaborated with Molson Coors to introduce a new cannabis-infused beverage product line called Truss. The company has finally started to progress with Truss. Hexo sold its adult-use beverages for first time in Q4 2020.

    Truss will contain five brands under Truss product line, offering various options for the customers. The company claimed that Truss surpassed the sales among all its competitors in Canada. A massive potential for the cannabis beverage market is shaping up. Truss has an upper hand allowing Hexo to make the first move in the market. Moreover, Hexo’s partner Molson Coors provides the platform to reach the masses in Canada.

    The company is looking to optimize its supply chain and improve its internal processes.

    Conclusion

    Every company has its risks, and so has Hexo. For a long-term investor, it will provide you with an opportunity to make profits. Hexo Corp. (HEXO) is making growth with Truss and with a potential market, it could bring massive revenue. Moreover, the company is expected to break-even in the first phase of 2021. The future seems prominent for the cannabis stock.