$HITIF High Tide Fundamental Analysis
I'd like to start by saying this is a very speculative play on the cannabis space. High Tide (HITIF) manufactures and sells cannabis accessories. That being the fundamentals along with the chart setup give me confidence that the risk is well worth the potential reward.
Let's jump into the numbers. Last quarter HITIF posted just under $17 million (USD) in sales, a 172% increase over the same quarter a year ago and over a 1000% increase over the same quarter 2 years ago. 2 quarters ago they posted their first positive EBITDA quarter at $1.4 million USD. Last quarter they posted their first profitable quarter at $3.1 million USD. Last quarter was their 8th straight quarter of sales growth. This gives me confidence that they can continue to grow into the future. Considering the valuations of other companies in the cannabis space I cannot comprehend how this stock is under a $60 million valuation. To put that in perspective if HITIF stock were to go up 10,000% it would have just over half the market cap of Canopy Growth (CGC). CGC last quarter had $101.5 million in sales with 75% YoY growth. That's 6x the sales of HITIF but 175x the market cap. If you do the math that comes out to about a 29x premium for CGC which seems like insanity to me even if you factor in their partnership with Constellation Brands (STZ). Now, I am fully aware that this is not exactly an apples to apples comparison considering CGC is a cannabis producer and distributor while HITIF sells accessories, but to me this is an incredible opportunity to make smart investment in a little known company.
Let's jump into the numbers. Last quarter HITIF posted just under $17 million (USD) in sales, a 172% increase over the same quarter a year ago and over a 1000% increase over the same quarter 2 years ago. 2 quarters ago they posted their first positive EBITDA quarter at $1.4 million USD. Last quarter they posted their first profitable quarter at $3.1 million USD. Last quarter was their 8th straight quarter of sales growth. This gives me confidence that they can continue to grow into the future. Considering the valuations of other companies in the cannabis space I cannot comprehend how this stock is under a $60 million valuation. To put that in perspective if HITIF stock were to go up 10,000% it would have just over half the market cap of Canopy Growth (CGC). CGC last quarter had $101.5 million in sales with 75% YoY growth. That's 6x the sales of HITIF but 175x the market cap. If you do the math that comes out to about a 29x premium for CGC which seems like insanity to me even if you factor in their partnership with Constellation Brands (STZ). Now, I am fully aware that this is not exactly an apples to apples comparison considering CGC is a cannabis producer and distributor while HITIF sells accessories, but to me this is an incredible opportunity to make smart investment in a little known company.
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