High Tide: Cabana Club Goes Global

Caffital Research
1.53K Followers
(8min)

Summary

  • High Tide announced the global expansion of Cabana Club with CBD, accessory, and snack sales into the US, EU, and UK markets.
  • The immediate earnings potential is limited, but the strategic potential of the brand's market expansion is significant.
  • HITI stock remains undervalued despite a recent rally, and I estimate an upside of 47% into a fair value of $5.02 even with conservative international expansion and margin potential.

A Canna Cabana Cannabis shop on King St W. in Toronto, Canada.

JHVEPhoto

High Tide Inc. (NASDAQ:HITI), the major Canadian cannabis retailer with a discount club and additional ecommerce platforms, reported the company’s intent to expand its Cabana Club banner with sales of CBD, accessories, and snacks and confectionary products. Importantly, the expansion positions High

This article was written by

1.53K Followers
I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.

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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