This is our third Hexo product review. In the investment industry lingo, “We are doing due diligence.” Hexo’s products reviewed are excellent. This is an old school grower producing some very good products at competitive prices. We have to pay attention and it’s enjoyable doing it.
While this strain is not our Hexo favourite, Atlantis is another winner for Hexo. The strain effects are on point. For anxiety attacks, this may be a good strain because of the happy and chill vibes.
Cost: $27.30 for 3.5 grams
On an investment note, Hexo is an attractive producer of cannabis. Hexo is leading the industry in driving prices down with a strong product offering. Hexo offered Oz volume at less than $5 a gram in Quebec. There is nothing not to like about Hexo except for their valuation, which is still high given their limited revenues relative to their valuations. Unfortunately, the only people we can blame what’s wrong with Hexo is the investors of Hexo. They gave Hexo the valuation and it’s way over the top. They did the same to Tilray, Canopy, Aurora and everyone else.
Here we are looking at Hexo with predatory eyes. We want the valuation to go down to where we think it is appropriate. The Molson partnership is a distraction and we attach little value. We believe the Constellation senior management who championed Canopy investment would be fired eventually. It just didn’t make sense. Molson in this market is just as ridiculous. Hexo would be better served concentrating on doing what they do best, which is producing top quality cannabis. And, Hexo is doing exactly what they need to do to survive, grow great cannabis.
We really like Hexo products and the next review will be also on another Hexo product. We are doing our due diligence because we think highly of Hexo. A half Oz of Atlantis is priced at $105. This grade and pricing is competitive with the grey market. There are $100 Oz in the grey market but that is bush weed strength. If it gives you a hard hit, it last 45 minutes. The market in cannabis as as efficient as the capital markets. In this respect, we are comfortable with Hexo’s ability to fight grey market products and prices. We have a winner except for the valuation.