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High Tide (NASDAQ:HITI) is one of my largest individual stock holdings, and I have covered it extensively on this forum. In my first two coverages, I explored two main arguments as to why this is one of
High Tide And SNDL: High Tide's Measured Approach Shines
Summary
- High Tide's differentiated strategy focuses on value acquisitions accretive to earnings and maximizing cash flows, making it a rare long-term buy and hold in the Cannabis space.
- High Tide, while growing its revenue, has minimized losses, maintained a robust balance sheet, and controlled its stock dilution as opposed to SNDL, which has wide losses and massive stock dilution.
- High Tide has been focused on its growth in the Cannabis space and is playing the long game, whereas SNDL has taken a short-term approach to growth and has diversified into the alcohol industry.
- SNDL's investment in High Tide suggests recognition of High Tide's successful model, despite being competitors.
Shri Upadhyaya's deep-seated passion for investing has seen a journey of over 15 years. A self-taught investor Shri intends to have skin in the game with most of his Buy and Sell recommendations. With a long stint in the algorithmic programming platform, Quantopian, Shri realized that most conventional trading approaches do not work overtime. Investing edge is personal, and needs to be developed through deep research and independent thought. Writing in Seeking Alpha provides Shri with clarity of thought and feedback from the community which is invaluable. By following Shri, you can expect the following types of analyses 1. Opportunities that exhibit asymmetry 2. Opportunities where cost-effective hedges are present that can protect your portfolio 3. Low correlation stocks that not only provide portfolio diversification but also offer significant growth 4. Staying away from names that do not have an attractive risk-reward profile
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.
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