Big Cannabis has had such a rough year that there just isn’t a lot of downside left in these stocks.
That’s in the background of the industry’s remarkable staying power this week. But then again, good news from Hexo Corp. (NYSE:HEXO) didn’t hurt, with sales last quarter jumping 30% and management offering guidance that the growth will translate into profits within the coming year.
On the surface, it’s great news. In a recession, it’s even better. So, it’s no wonder that the stock surged 22% this week, lifting the entire group in the process.
Only the lingering stink around cannabis stocks is holding HEXO back now. If this was a technology start-up or a biotech developer, it would probably rally even harder from here.
This may be a new beginning for HEXO and its larger counterparts. Long-term shareholders have needed to step back to the brink of insolvency.
A week ago, this company was facing expulsion from the NASDAQ. Even here at $1, it looks extremely vulnerable to being stripped of its listing.
We’re back at square one. But the numbers from here look good. The company’s management has turned the business around.
Maybe this is the first breath of a new springtime for the cannabis stocks and a new beginning. We’ll just have to see.