HEXO’s (HEXO) earnings report last week showcased muscular strength and drive to gain a top position within the cannabis industry and CEO Sebastien St-Louis clearly is fixated on getting there through all means necessary. The company is also an absolute steal right now at a sub $900M market cap, especially when compared to their competitors: Aphria (APHA) $6.17B; Tilray (TLRY) $4.35B; and Cronos (CRON) $3.66B.
HEXO could be the best kept value secret on the market right now… but not for long.
CEO Sebastien St-Louis on last week’s call:
“I think the end game here will be three companies that control 70% market share. The number one spot will be a 40% controlling stake – nobody has proven they can take that number one spot yet, and that’s why HEXO is shooting for top two. But in this competitive set, we’re now right on the cusp of that top two position with a shot at that number one, and to do that you have to have world-class manufacturing to lower your COGS. You have to have world-class greenhouse production like we have in Masson and Gatineau, and you have to have world-class indoor production like we’re acquiring very soon with Zenabis in Alphaville.”