High Tide (TSXV:HITI): A Canadian Growth Stock To Buy

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Summary

  • Stocks of the pot supplier have gained 300 per cent since its listing on the TSX Venture on November 19, 2020.
  • It has risen 200 per cent year-to-date (YTD), with a current market cap of nearly C$ 400 million.
  • The cannabis stock is trading at C$ 0.78 per common share against its all-time high of C$ 1.13 per piece, and it is up 359 per cent from its all-time low of C$ 0.17 per share.

Cannabis penny stocks have been blooming this spring season as investors get high on their bright future. With the US and Mexico likely to legalize the marijuana industry this year, these micro-cap stocks are placed at an attractive position and has the potential to grow multifold.

Here is one Toronto Stock Exchange Venture-listed pot stock that could deliver handsome returns this year:

 

High Tide Inc. (TSX: HITI)

 

The Alberta-based firm is a cannabis producer and wholesale supplier. It also retails smoking accessories and pot-related lifestyle items.

The pot stock has soared 300 per cent since its listing on November 19, 2020, led by the green wave. Its initial public offering came at a perfect time when cannabis stocks started accelerating their growth journey.

The stock has returned 200 per cent year-to-date and has a market cap of C$ 400 million. The average trading volume for the last 30 days is 9 million with a price-to-cashflow ratio of 33.

The cannabis product distributor concluded its merger with Meta Growth Corp on November 18. The merged firms have built a leading Canadian cannabis retailer with 65 operating retail locations and C$148-million annualized revenue.

Cannabis retailer shares are up 359 per cent from its all-time low of C$ 017 per share. It is currently trading at C$ 0.78 per piece compared to its all-time high of C$ 1.13 per share. It holds a current price-to-book ratio of 26.

Image Source: Kalkine Group @2020

Between February 1 to February 19, the company’s convertible debentures worth C$ 19.86 million converted their debt into stocks.

The company has completed equity offerings worth C$ 23 million and converted more than $ 27 million of debt into common shares during the current fiscal year.

The cannabis products retailer will announce its financial and operational earnings for the fourth quarter and full fiscal year ended October 31, 2020, on March 1, 2021.

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