Here’s How Millennials Can Save Hexo Stock … and Maybe its Cannabis Peers

这里是 Millenniales 如何拯救 Hexo 股票…也许它的 Cannabis Peers

2019-09-06 17:16:14 InvestorPlace


It’s becoming a sad, familiar scene in the broader marijuana industry. Like so many other sector players, Hexo started out this year on fire. But as we flipped the pages of the calendar, investors started to see less appeal for botanical goods. As a result, the Hexo stock price has charted a severely bearish trend channel since late April. Source: Shutterstock In my opinion, some of the negativity is unwarranted. Whether we like it or not, cannabis stocks tend to move in sympathy with each other. That’s great when we have collectively bullish news, such as Canada legalizing recreational weed. But negative events, such as the CannTrust (NYSE:CTST) controversy, have hurt the Hexo stock price. In early July, Canadian health officials discovered that CannTrust illegally grew cannabis in unlicensed rooms. That set off a wildfire within the industry, which so far culminated in CannTrust firing its CEO. While this incident has nothing to do with HEXO, cannabis companies eagerly seek legitimacy and credibility. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Unfortunately, this incident was incredibly unhelpful for Hexo stock. Since the incident came to light, the company’s equity has plunged roughly 16%. That said, let’s face facts: Hexo stock has enough of its own problems on paper to justify its volatility. For instance, while its fiscal third-quarter earnings results weren’t terrible, they failed to meet analysts’ expectations for per-share profitability. And this is where the honeymoon phase has dried up for HEXO: Wall Street wants substantive results, and they’re not getting it. Naturally, many folks are saying to hold off on buying Hexo stock until this situation improves. Personally, I’m speculating on HEXO, so I’m biased. Nevertheless, I can see the wisdom in a patient approach. For example, my InvestorPlace colleague Todd Shriber recommended waiting out shares until they stabilize. This is very sound advice. If we were talking about blue chips, I would say the same thing ad nauseum. However, we’re talking about the cannabis industry. It’s unlike any other sector because we don’t know legal marijuana’s ceiling. If we see federal legalization of weed in the U.S., it can skyrocket the Hexo stock price, along with peers like Aurora Cannabis (NYSE:ACB) and Cronos Group (NASDAQ:CRON). But if Canadian legalization is the industry’s peak, well, I would have made one of my dumbest moves yet. Logically, most cannabis companies are banking on the U.S. legalization potential. Politically, I believe momentum favors the optimists. Thus, I’m not overly concerned about HEXO’s expansionary efforts because I believe their efforts will be rewarded in the long run. But along the lines of marijuana being an unprecedented market, we must also appreciate their target consumer base: millennials. While most of the country supports marijuana legalization, millennials overwhelmingly (74%) support the cause. More importantly for the Hexo stock price, evidence indicates that millennials are narrative-driven investors. CNBC calls it emotional investing. But the bottom line is that young people are guided by purpose and principles. Therefore, their investments are more likely to reflect their lifestyle or personal ethos. And that truly augurs well for HEXO. I’ll concede again that on paper and against traditional financial metrics, the company doesn’t look too hot. But really, who cares? I don’t mean to sound flippant, but their target audience is youthful investors, not stodgy, “by the book” baby boomers. Lately, bearish stories about legal marijuana have a recurring theme: don’t jump aboard because the industry is unproven and unstable. They may throw in specific details about the financial statements, such as negative income trends. All of these things and more are true for Hexo stock. But again, bear in mind that the underlying company’s target audience is young people. They’re least likely to care as much about the financials. Instead, they’re looking for a convincing narrative. HEXO has that in spades. Moreover, shares have a cheap ticket price. That’s also important for younger millennials, who are burdened with college debt and other life expenses. Don’t get me wrong: Hexo stock is still an incredibly speculative and risky name. But its potential for an upswing isn’t nearly as ludicrous as you might think. As of this writing, Josh Enomoto is long HEXO.
在更广泛的大麻行业,这是一个令人悲伤、熟悉的场景。和许多其他行业参与者一样, Hexo 今年也开始起火。但当我们翻开日历上的几页时,投资者开始看到对植物产品的吸引力下降。因此,自4月下旬以来, Hexo 股票价格已形成严重的熊市趋势通道。 资料来源: Shutterstock 在我看来,有些消极是没有根据的.不管我们喜欢与否,大麻库存往往是相互同情的。当我们有集体乐观的消息,比如加拿大将娱乐杂草合法化时,这是很棒的。但负面事件,如佳能信托( NYSE : CTST )的争议,已损害了 Hexo 股价。 7月初,加拿大卫生官员发现, CannTrust 非法在没有许可证的房间里种植大麻。这引发了该行业内部的一场大火,最终导致 CannTrust 解雇了首席执行官。尽管这一事件与 HEXO 无关,但大麻公司急于寻求合法性和可信度。 投资场所-股票市场新闻、股票咨询和交易提示 不幸的是,这一事件对 Hexo 股票非常不利。自这起事件曝光以来,该公司的股价已下跌约16%。 话虽如此,让我们面对事实: Hexo 股票在账面上有足够的问题来证明其波动性。例如,尽管其第三财季业绩并不糟糕,但它们未能达到分析师对每股盈利能力的预期。而这正是 HEXO 蜜月阶段已经干涸的地方:华尔街想要实质性的结果,他们没有得到。 当然,很多人都说,在这种情况改善之前,不要购买 Hexo 股票。 我个人在猜测 HEXO ,所以我有偏见。然而,我可以耐心地看待智慧.例如,我的 InvestorPlace 同事 ToddShriber 建议等待股票稳定。 这是很好的建议。如果我们谈论的是蓝筹股,我会说同样的东西广告恶心。然而,我们谈论的是大麻产业。这与其他行业不同,因为我们不知道合法大麻的上限。 如果我们在美国看到野草的联邦合法化,它可能会飙升 Hexo 的股价,以及像奥罗拉(Aurora) Cannabis ( NYSE : ACB )和 Cronos Group ( NASDAQ : CRON )这样的同行。但如果加拿大的合法化是该行业的巅峰,那么我还会采取我最愚蠢的举措之一。 从逻辑上讲,大多数大麻公司都在指望美国的合法化潜力。在政治上,我认为势头有利于乐观主义者。因此,我并不过分担心 HEXO 的扩张努力,因为我相信从长远来看,他们的努力会得到回报。 但鉴于大麻是一个前所未有的市场,我们也必须认识到他们的目标消费群:千禧一代。虽然大多数国家支持大麻合法化,但千禧一代(74%)基本上支持大麻合法化。 更重要的是,对 Hexo 股价而言,有证据表明,千禧一代是由叙事驱动的投资者。CNBC 称其为情感投资。但底线是年轻人受目标和原则的引导。因此,他们的投资更可能反映他们的生活方式或个人风气。 这对 HEXO 来说是个好兆头。我再一次承认,与传统的财务指标相比,这家公司看起来并不太热门。但真的,谁在乎?我并不是说听起来有些浮躁,但他们的目标受众是年轻的投资者,而不是笨手笨脚的“婴儿潮一代”。 最近,有关合法大麻的悲观故事有一个反复出现的主题:不要因为大麻产业还没有被证实和不稳定而上马。他们可能会详细介绍财务报表,如负收入趋势。 所有这些事情和更多是真实的 Hexo 股票。但再次要记住,公司的目标受众是年轻人。他们最不可能关心金融方面的问题。相反,他们正在寻找一个令人信服的故事。 HEXO 在黑桃中有。此外,股票有一个便宜的票价。这对于那些背负着大学债务和其他生活费用的年轻千禧一代来说也很重要。 不要让我错了: Hexo 股票仍然是一个难以置信的投机和风险名称。但它的上升潜力并不像你想象的那么可笑。 在这篇文章中, JoshEnomoto 很长。