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Hollister Biosciences HSTRF Stock With significant upside potential


D. H. Taylor
(@cannabisinvestingnewsletter)
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Joined: 1 year ago
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Hollister Biosciences HSTRF Stock is in Hollister, CA.  They are just over the hill from Salinas, California, home to Lowell Farms.  I have wanted to check out Hollister Biosciences for some time.  Unfortunately, financial numbers were uninspiring, at best.  That just changed with the most recent revenue which more than doubled from $11M to $23M.  While other metrics lag behind growth like this, Hollister Bioscience's it is a matter of economies of scale with higher output levels that will push margin and cost metrics to better levels.  Or, so one would assume. We have no official guidance for the coming three quarters remaining.  But, we do have a stated run rate that seems likely to be overrun.

While Hollister Biosciences has provided a nice investor presentation, and because I know a thing or two about that area of California (I am a Californian), you have to sort of twist the information to get a solid idea of what to expect.  This region of California produces excellent wine; it is just outside of the Monterey Bay area.  I assume this would translate to some very good quality cannabis but, I have not seen the correlation statistics.  However, from Lowell, we know that they had a tough time with drought last year, and that affected output.  This year appears to be even worse.  Bad news.

They have prominent brand collaborations that will likely do well including Easyriders and Tommy Chong.  They are also in the State of AZ which just recently passed adult-use cannabis.  As they state, this will significantly increase revenues.  The Venom brand is doing exceptionally well in Arizona and this puts Hollister squarely in a strong position.  I also wonder if this puts Hollister in a position to be acquired by, say, Curaleaf CURLF?

This topic was modified 6 days ago by D. H. Taylor

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Gary Johnson
 Gary Johnson
(@Gary Johnson)
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Joined: 6 months ago
Posts: 3
 

why not just call the Company and ask them about their run rate?


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