Cannabis Corner: A Profitable Business

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street.

This week’s big headline came from a cannabis company Wall Street had written off for dead. It turns out that Hexo Corp. (NASDAQ:HEXO) is now generating positive cash flow.

It’s a breakthrough. While the absolute numbers are still on the small side — $202,000 in earnings before interest, taxes, depreciation and amortization (EBITDA) last quarter on $32 million in sales — Hexo has now proved that cannabis companies don’t need to be money pits.

You can make a business in this industry as well as chase capital to fund expansion plans that may never pay off. I hope every cannabis entrepreneur is watching.

And Hexo pulled this off in a very simple way. You know how I’ve been arguing for value-added cannabis consumer products for years now, only to be disappointed at just about every turn.

Hexo has launched a line of CBD-enhanced sodas in Colorado. Simple, elegant, effective. 

That’s the Cannabis 2.0 I wanted. If only the big cultivators like Canopy Growth Corp. (NASDAQ:CGC) would get off the farm and start packaging similar enhanced products, the industry could really get moving to make shareholders happy.

I’ve got triple-digit-percentage cannabis fun in my IPO Edge portfolio. We’re holding on.

share on:

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor