High Tide: An Overlooked Pot Stock Outperforming The Industry

Nicholas Calhoon
98 Followers

Summary

  • The marijuana industry is projected to grow by 32.04% CAGR from 2021 to 2028.
  • HITI is an overlooked cannabis option in a struggling industry.
  • The company has grown revenues by 155% CAGR over the last three years, outperforming the largest names in cannabis.
  • While its competitors have prematurely focused on the American market, HITI has become the largest Canadian retailer in Alberta and is expanding quickly in three other provinces.
  • Based on comparison multiples, HITI is very undervalued with an implied share price of USD$12.8, a 92.5% increase from its last closing price of $6.65.

Tall Stock of a Mature Herbal Cannabis Plant Ready for Harvest at a CBD Oil Hemp Marijuana Farm in Colorado

Jeremy Poland/iStock via Getty Images

While the losers with larger market caps like Tilray (TLRY) and Canopy Growth Corporation (CGC) have stolen headlines, High Tide Inc. (NASDAQ:HITI) has outperformed with a strong revenue growth of 155% CAGR over the past three

This article was written by

98 Followers
USMA Senior; Economics major. Risk-seeking, aggressive philosophy looking for stock/ETF opportunities to hold for the medium and long-term. I like to focus on early-stage companies operating in innovative sectors that I believe will outperform in the future as well as mature companies that are trading at discounts. My valuation techniques rely heavily on wholistic fundamental analysis to evaluate long-term potential with a hint of technical analysis to decode short-term trends. I'm very open and appreciative to any feedback on my articles on how I can improve them moving forward. As always, do your own research.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of HITI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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