19 September Watchlist 👀

 

Today we are watching…

1.  Hexo Corp. (#hexo)

Hexo stockholders are not happy bunnies and with good reason. Since the end of April, its price has dropped significantly from $7.88 to its current level around $4.10. Like many other companies in the cannabis industry, Hexo is facing some challenges – especially about how it arrives at its inventory valuation. In other words its marijuana supplies. It’s all a bit subjective, using a combination of the historic average selling price, the yield per plant, the stage of growth, and the amount of wastage. Notwithstanding, global demand for cannabis-based consumer products has been increasing at a rapid pace, with CBD (Cannabidiols)demand in the US alone expected to be worth $23.7 billion by 2023, and $44.4 billion globally by 2024. And as consumers more and more embrace the products as alternatives to traditional medicines, future opportunities for CBD companies like Hexo should only get better. So investors should be taking the long and not the short point of view!

2. British American Tobacco (#bat)

The prospects for tobacco stocks such as British American Tobacco (BAT) have long been uncertain. Growing social unacceptability and tighter regulations have led to sales declines, driving investors away from a sector that was once considered defensive. Then along came the e-cigarette, or vapes, to resurrect its future prospects. BAT is aiming to generate £5 billion ($6.2 billion) per year in e-cigarette revenues, by 2024. This would go a long way to offsetting the decline in tobacco sales. But this and a drive for cost efficiency and simplification (it’s laying off 2,300 workers!) to provide greater long term stability and less risk may not be enough. With the US death toll from vaping recently reported on the rise, public health bodies are warning about the dangers. And India has just declared a ban on its production, import and sale. These couldn’t come at a worse time for the tobacco industry, and BAT. Mind you, it does still pay out a generous dividend (a prospective 6.5%). But this could just be its last puff!

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Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

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