Nothing like a string of good news to put spring in a stock. Hydropothecary (THCX.V) (love the name, but try saying it ten times fast) is working to recover from a string of bad news and a mea culpa earlier this year.
A quick look at the 30 performance of the stock reflects some of the good news, including today’’s announcement of an expansion in Quebec.
After a dip earlier – the stock has once again climbed above it’s starting price. October has seen a series of announcements including a job creation award in Quebec, an expanded storage license, a purchase deal and today’s announcement that it is expanding again in Quebec.
It’s the Quebec angle here that interests me. Let me tell you, the Quebec market is like a micro-climate. It can be this precious hothouse where government and public support keep businesses alive and profitable for no other reason than they are ‘Les Notres’ or ‘ours’. Just ask Bombardier…
In a piece I wrote last week I spoke about the shift in the culture around cannabis going on in Quebec. Looking at the tea leaves, it seems to me there’s an opportunity to become ‘the’ go to weed concern in Quebec.
Hydropothecary is making some good moves, intentionally or not, to get in with the Quebec political-media complex. It’s a smart strategy to get a lock on Montreal and Quebec City. Work the employment angle right and the sweet, sweet subsidies will come rolling in.
If I were in a similar position, I’d be working feverishly on a brand of product with a fleur-de-lys and/or possibly a juggler and get it to market in the Plateau Mont-Royal ASAP.
Putting the Quebec question aside for a minute – the string of major announcements this month at the very least is a big PR move saying ‘LOOK AT ME’ from Hydropothecary. Ok I’m looking, I see you have some potential.
Allons-y, impress me.
Full Disclosure: Was born and raised in Montreal. I don’t own any stock in THCX, nor are they a client. (but our contact info is on the masthead).
This article is embarrassing. The “announcement “ you are referring to is simply that they are enableing people in Quebec to participate in the debenture warrant offering (the absolute worst financing deal that was announced in the weed sector in the last month btw) that was previously offered to every other province in the country. There was no new expansion announced. This offering is to finance the expansion that was announced way back in August.
Thanks for your feedback – My point was to illustrate the full on PR blitz the company is on right now, and to speculate on it’s overall Quebec strategy. I could have made it clearer that by letting Quebecers get in a deal, (no matter how good/bad) helps increase the possibility of becoming one of those provincial darlings.
I’d point out that the company put out *another* news release this morning, the PR blitz continues.
Perhaps they dropped all those press releases in a coordinated effort to bury the news yesterday that their revenues declined 18% QoQ. You probably should have mentioned that one to give your readers a balanced view of the company.
That being said I will agree with you that being the biggest fish in a small pool of LPs in Quebec could be a competitive advantage in the future.