3 Reasons to Dump Shares of HEXO Today
Canadian cannabis company HEXO (NYSE: HEXO) hasn't been performing well this year. Its share price is down more than 50% year to date, worse than the broad holdings of the Horizons Marijuana Life Sciences ETF (OTC: HMLSF), which has fallen 19% over the same period.
But as poorly as HEXO stock has performed thus far, it could be on a path to decline even more this year. Here's why investors should sell the stock before things get even worse:
If there's one thing that can cripple a company's flexibility, it's debt. HEXO released its third-quarter results on June 11, and the company's balance sheet wasn't all that strong. One of the concerns that investors should have is that as of April 30, HEXO recorded total liabilities of CA$146.1 million. That's up from CA$89.9 million back on July 31, 2019.
Source Fool.com
