Author Bio
Zhiyuan Sun is a statistician with a knack for analyzing clinical trials and company financials. Investing in healthcare and cannabis is his passion, as well as looking out for new, actionable stock investment ideas in these sectors. Fool since April 2020. Lives in Québec City, Canada. Follow @Bio Chameleon
Trulieve Cannabis (CNSX:TRUL)(OTC:TCNNF) is a U.S. pot grower that has blown by many shareholders expectations. Over the past year, pot stocks, as measured by the
Horizons Marijuana Life Sciences ETF (TSX:HMMJ) index, have dipped 7%. Meanwhile, Trulieve has delivered a stunning 203% growth in investors principal.
Canadian pot stocks
Tilray (NASDAQ:TLRY) are looking to join forces in what would be a seismic shift in the marijuana industry. On Dec. 16, both companies announced a defining agreement to merge and that the all-stock deal will close in the second quarter of next year.
Earlier this year, Aphria was also in advanced merger talks with
Aurora Cannabis (NYSE:ACB), but that deal fell through. The Tilray-Aphria deal is much more of a sure thing at this point, with both companies already eyeing a completion date. Let s take a closer look at what this transaction could mean for the industry and if investors should be buying up either of their stocks based on this news.
Cannabis company
HEXO (NYSE:HEXO) was coming off a poor finish to fiscal 2020 when it released its year-end and fourth-quarter results on Oct. 29. Although net sales of 27.1 million Canadian dollars grew by 76% year over year, the company s net loss of CA$169.5 million, which was weighed down by writedowns and losses, spooked investors. The company desperately needed an improved performance this past quarter and fortunately, it delivered with strong top and bottom lines.
HEXO released its first-quarter results of fiscal 2021 on Dec. 14, and there were many positives that investors could take away from the earnings report. Here are four of the highlights from the quarter that were among the most promising from the three-month period ending Oct. 31.
Cannabis stocks are, once again, at the top of investors minds. U.S. states continue to legalize pot in a piecemeal way, with four states (Montana, Arizona, New Jersey, and South Dakota) passing measures for recreational marijuana in the 2020 election. Once these markets open, adults will be able to use marijuana recreationally in 15 states and medically in 36 states, a staggering change from 10 years ago when it was completely illegal in every part of the country. Of course, marijuana remains federally illegal, but President-elect Joe Biden has said he plans to decriminalize the substance.
Even with all this momentum, investors who want a piece of the pot market should consider buying stocks with proven concepts. Two companies that fit this bill are