HEXO & Nova Cannabis (NOVC): 2 TSX pot stock firms with recent reports

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HEXO & Nova Cannabis (NOVC): 2 TSX pot stock firms with recent reports

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HEXO and Nova (NOVC): 2 TSX pot stocks to get high on
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Highlights

  • Hexo Corp achieved an international sales growth of 36 per cent YoY and 312 per cent quarter-over-quarter.
  • Nova Cannabis reported sales of C$ 47.6 million in Q4 FY2021, noting a YoY surge of 175.9 per cent.
  • Stocks of Nova Cannabis soared as high as C$ 2.85 apiece on Monday in the wake of its Q4 2021 results. The NOVC stock closed at C$ 2.64 apiece, up by almost 14 per cent on Monday

The Canadian government, earlier in March, proposed some changes in cannabis regulations, which also included an update that allows Canadians to buy more pot drinks without surpassing the upper public possession limit.

In addition to this development, some Canadian pot stocks like Hexo Corp (TSX: HEXO) and Nova Cannabis Inc (TSX: NOVC) may have recently gained some traction on the stock market after releasing their quarterly results. 

Let us talk about two TSX pot stocks and their overall performance. 

Hexo Corp (TSX: HEXO)

Hexo saw its Q2 total net revenue at C$ 52.8 million in 2022, reflecting a year-over-year (YoY) growth of 61 per cent. Its adjusted gross margin was 36 per cent in the latest quarter. The pot maker achieved an international sales growth of 36 per cent YoY and 312 per cent quarter-over-quarter. 

Stocks of Hexo Corp closed at C$ 0.72 apiece, down by over five per cent on Monday, March 21, with 2.7 million shares exchanging hands. 

Also read: Fire & Flower (FAF) & Canopy (WEED): 2 TSX cannabis stocks to watch 

Nova Cannabis Inc (TSX: NOVC)

Nova Cannabis reported sales of C$ 47.6 million in Q4 FY2021, noting a YoY surge of 175.9 per cent. Its Q4 gross profit jumped 58 per cent YoY to C$ 8.4 million. However, the cannabis company incurred a net loss of C$ 6.24 million in the latest quarter compared to a gain of C$ 1.37 million a year ago.  

 Nova Cannabis (NOVC) Q4 FY2021 results 

Stocks of Nova Cannabis soared as high as C$ 2.85 apiece on Monday in the wake of its Q4 2021 results. 

Bottom line

Canada's move to ease COVID rules and pot regulations may push up cannabis sales and help pot makers improve and expand their pot products portfolio. 

However, investors should note key changes in the cannabis industry and analyze company-specific information to earn maximum profit in the long run. 

Also read: Tilray (TLRY) partners with HEXO: 2 TSX pot stocks to closely watch? 

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 

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