1 Cannabis Stock to Avoid At All Costs
Cannabis company HEXO (NYSE: HEXO) has several things going its way. For instance, the pot grower teamed up with alcoholic beverage maker Molson Coors (NYSE: TAP) in 2018, and out of this partnership was born a joint venture, dubbed Truss Beverages. HEXO is looking to make a dent in the potentially lucrative cannabis derivative market in Canada via this joint venture.
Through its acquisition of Newstrike Brands for 263 million Canadian dollars (about $201 million) in March 2019, HEXO was able to increase its production capacity. With a projected peak output of about 150,000 kilograms per year, HEXO now ranks in the top 10 pot growers in Canada by production capacity.
Furthermore, HEXO holds the leading market share in the adult-use cannabis market in Quebec, which is the second-largest Canadian province by population. Despite these advantages, HEXO -- which saw its shares plunge by 53.6% last year -- shouldn't be on the list of cannabis stocks you want to buy. Here's why.
Source Fool.com
