Video Summary: Short and insider selling add up to a rainy period for HEXO

Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Club
$299/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads
JOIN THE CLUB

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

Here is the video summary of the July 10th INK Morning report describing a bearish set up for Canadian marijuana grower HEXO. The report and video were distributed to INK subcribers on publication day. The report is not a recommendation to buy or sell securities.

INK Research and Canadian Insider are both subscriber-supported. We do not accept payments from issuers or promoters for stock coverage.

Script:

The stock of Canada-focused cannabis company HEXO has been coming down to earth recently, off about 20% over the past three months. Short interest in the stock peaked in mid-April, right before HEXO hit its all-time high of $11.29 on April 29th. Although some short sellers have covered, short interest remains high.

INK short signals suggest a bearish stock set up based on large short selling and low levels of insider commitment as measured by our quantitative rankings.

Between April 10th and May 13th, on balance insiders sold $20.6 million worth of stock in the public market, net of option exercise costs.

On June 12th, HEXO reported [product] sales excluding excise tax rose of $13 million for Q3, up 945% from Q3 2018. However, the company still reported a loss from operations of $2.2 million.

Meanwhile gross margins before fair-value adjustments fell to 50% from 61% the year before.

HEXO is aiming for full production capacity of 108,000 kg annually. Will larger capacity yield budding profits growth? We will be watching insiders for clues.

The next time insiders are in the public market, some buying with conviction could help roll away the storm clouds hovering over the stock.

Get our full report through INKResearch.com or via the Canadian Insider Club and always consult your registered investment advisor before investing. Good luck friends and thanks for listening!

Comment On!

140
Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to CanadianInsider.com (via Easy Blurb).