HEXO Corp (TSX:HEXO) (NYSE:HEXO) Stock Moves Back to $1: Time to Buy Now?

2019 was a bad year for cannabis stocks as a slew of issues came to the fore with regards to the industry, and many of the best-known stocks experienced steep declines. Although that phase is now over for the sector, the coronavirus pandemic has come as another problem, and many companies might find it difficult to survive.

On the other hand, it could also be a great time to invest in pot stocks, and one such stock is probably HEXO Corp (TSX:HEXO) (NYSE:HEXO). In this regard, it should be noted that Hexo has adopted a strategy that is radically different from most cannabis companies.

Key Things to Watch

Instead of focussing on maximizing cannabis production like many others, Hexo has built a THC platform. It is the first cannabis platform built by any company and can be used by other cannabis firms to create their own THC products whenever they want.

One of the more ambitious projects that have been undertaken by Hexo is that of a co-branded cannabis-infused beverage in collaboration with Molson Coors. The company aims to launch the product at some point this year and enter the cannabis 2.0 market in a big way.

In this case, Hexo is going to provide the expertise in relation to cannabis, and Molson Coors will provide the brand name as well as its marketing heft. It is believed that such a product could trump the products manufactured by little known marijuana companies. The company is looking to use the same model for a range of other cannabis-infused products like edibles, cosmetics, and sleep aids. It is a market that could be worth as much as $10 billion in North America alone.

Although Hexo is one of the early movers into this space, the company only has a market cap of $500 million at this point. The stock has lost a lot of value over the past year, but over the course of the past month, it has rallied strongly.

About Travis Garlick 1791 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.