Canadian cannabis producer HEXO (NYSEMKT:HEXO) recently unveiled results from the three months ended April 30, 2019. There were some impressive top-line numbers, but they were largely ignored and the stock finished the week of its announcement 32% lower than a peak it reached near the end of April.
Is this dip a chance to pick up a leading cannabis producer at a discount, or could this be the beginning of a longer slide? Here’s what you need to know about HEXO’s chances to turn this ship around.
Reasons to buy
There aren’t many industries growing faster than licensed cannabis right now. Using 2018 as a baseline, global sales are expected to double by 2022.
In 2019, worldwide sales of legal marijuana are expected to come in 38% higher than a year earlier, and HEXO’s top line bears this out. During the company’s fiscal third quarter, net