IB Net Payout Yields Model

HEXO Q1 Earnings: Not A Great Path Forward


  • HEXO reported weak FQ1 results for the period ending Oct. 31.
  • The addition of the businesses of Redecan and 48North didn't improve the financials or move the company any closer to being cash flow positive.
  • The stock isn't touchable with the senior debt overhang and another restructuring in the works.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »
As with most consolidations in the Canadian cannabis space, the HEXO (HEXO) plan failed miserably. The LP acquired three separate businesses and cratered their stock in the process. My investment thesis remains Neutral on the stock following the collapse below $1 and too much uncertainty surrounding the business.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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