It’s not a mystery where to find strong growth. As the bull market rages on, driven by extreme monetary and fiscal policy support amid historic challenges, the only way for investors to truly lose the game is to not play. Just about anything else has been working.
But the chapter ahead will likely take a bit more nuance. The division between the pandemic plays and the rest of the market is obvious. And money managers diversifying between the two are doing well. But it’s not easy to find opportunities that have a viable long-term growth thesis but are still trading at a strong value relative to the market.
One area that could become of increasing interest is in the cannabis space, where the long-term growth outlook is tremendous, but flows have yet to surge into the space. Most cannabis plays are still trading at 1-2x sales despite forward topline growth forecasts above 20% over the coming four quarters.
That’s a disposition that is increasingly rare.
With that in mind, we take a look at five cannabis plays that are actively traded and continue to post strong performance data while making significant investments at a strong ROI, including: Curaleaf Holdings Inc (OTCMKTS:CURLF), Green Thumb Industries Inc (OTCMKTS:GTBIF), Trulieve Cannabis Corp (OTCMKTS:TCNNF), Sugarmade Inc (OTCMKTS:SGMD), and Cresco Labs Inc (OTCMKTS:CRLBF)
Curaleaf Holdings Inc (OTCMKTS:CURLF) recently announced the launch of Curaleaf Sublingual Tablets in Florida. These cube-shaped, berry-flavored bites will provide the state’s medical patients with a discreet, sugar-free yet fruity alternative form of medication.
According to the release, Curaleaf’s new Sublingual Tablets, which will be in 30-piece jars, contain 5mg of high-quality cannabis oil per piece, which allows patients to manage their treatment plan with confidence and ease. Each bite, which is made to be ingested orally or sublingually, is translucent in color and features a refreshing “Arctic Berry” flavor. The new product will be sold at all of the Company’s 28 operating dispensaries in Florida with a phased roll-out between August 8th – August 20th. Limited quantities will be released to pre-existing loyalty patients beginning tomorrow, July 30th.
Curaleaf Holdings Inc (OTCMKTS:CURLF) promulgates itself as a company that operates as an integrated medical and wellness cannabis operator in the United States. The Company is the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf, Inc. has a presence in 12 states.
Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.
It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.
Curaleaf Holdings Inc (OTCMKTS:CURLF) also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations. As of November 01, 2018, it operated a network of 29 dispensaries. The company was founded in 2010 and is headquartered in Wakefield, Massachusetts.
Green Thumb Industries Inc (OTCMKTS:GTBIF) recently announced that it opened Essence South Durango, on June 27. This has been one of the fastest growing MSO’s in the wider cannabis space.
According to the release, this is Green Thumb’s fifth Essence store in the Las Vegas area and 48th retail location in the nation. Profits from the first day of sales will be donated to Last Prisoner Project, a nonprofit coalition of cannabis industry leaders, executives, and artists dedicated to bringing restorative justice to the cannabis industry.
Green Thumb Industries Inc (OTCMKTS:GTBIF) bills itself as a company that manufactures and sells various cannabis products in the United States. The company’s cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topicals.
According to company materials, “Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE(TM) dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven highly regulated U.S. markets. Established in 2014, GTI employs more than 350 people and serves hundreds of thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business.”
Green Thumb Industries Inc (OTCMKTS:GTBIF) markets its products through third-party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name. The company was founded in 2014 and is headquartered in Chicago, Illinois.
Trulieve Cannabis Corp (OTCMKTS:TCNNF) just announced the opening of its latest storefront: Tarpon Springs will be home to the Company’s 53rd dispensary in the state of Florida and 55th nationwide.
According to the release, situated next to Lake Tarpon, the dispensary supports Trulieve’s goal of expanding and ensuring direct, reliable patient access to medical cannabis throughout the state. It also joins the Company’s 52 other Florida dispensaries, including those in nearby New Port Richey, Clearwater, and Tampa.
Trulieve Cannabis Corp (OTCMKTS:TCNNF) promulgates itself as a company that, through its subsidiary, Trulieve, Inc., engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.
It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.
According to company materials, “Trulieve is a vertically integrated “seed to sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL.”
Trulieve Cannabis Corp (OTCMKTS:TCNNF) distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as takes orders online and by phone for delivery. As of November 20, 2018, the company operated 21 dispensaries. Trulieve Cannabis Corp. is headquartered in Quincy, Florida.
Sugarmade Inc (OTCMKTS:SGMD) is in the process of expanding into the LA area for its BudCars cannabis delivery business. This is likely to be a strong source of new strategic growth for a company that has already been posting sequential monthly growth above 30% on the topline for several consecutive months after making its flagship investment in BudCars.
At this point, based on recent disclosures from the company, we have a clear sense that, not only is the first LA location on track and simply awaiting some factors no doubt slowed by the pandemic – city council isn’t exactly on vacation right now. Crisis mode is the standard setting for most administrative affairs in local government around the country right now. However, the other key piece here is that the second LA BudCars location is ahead of schedule. That’s perhaps even more important here.
Sugarmade Inc (OTCMKTS:SGMD) also recently issued a mid-month performance update for the month of July, which was on pace to set multiple new Company performance records at the time for sales, gross profits, and total customer orders.
According to the release, as of July 14, the Company is now on pace to meet or exceed its target of $650,000 in total sales in July, with well over 5,000 individual customer orders likely this month, suggesting that sequential month-over-month topline growth will be at or above the Company’s target 30% level.
“Our BudCars Sacramento hub continues to demonstrate accelerating growth that suggests we still haven’t really found the ceiling here in terms of period-over-period upside potential,” commented Jimmy Chan, CEO of Sugarmade. “Ultimately, this is gratifying to see because we have taken a unique approach to retail cannabis product distribution.”
Sugarmade Inc (OTCMKTS:SGMD) has been posting major growth updates on a regular basis over the past couple months as its BudCars model takes apparent flight. The rate of sales growth expected from the company in 2020 has walked up a steep ladder, with the latest guidance suggesting we could see it north of $30 million in annualized sales by year-end.
Cresco Labs Inc (OTCMKTS:CRLBF) just announced additional actions in board refreshment and corporate governance to further strengthen its leadership in the cannabis industry, including its move to appoint Carol Vallone.
According to the release, Cresco has appointed Carol Vallone to its board of directors, effective immediately. Ms. Vallone is a well-known business leader, former CEO, and corporate board director, with a strong track record in launching, scaling, and managing global companies… In the past, Ms. Vallone served as President and Chief Executive Officer of leading E-learning companies including WebCT Inc., where she grew the online learning company to cover almost two thousand institutions in seventy countries. She has also served on multiple boards at leading non-profit healthcare, public financial services, and e-commerce organizations.
CRESCO LABS ORD (OTCMKTS:CRLBF) trumpets itself as a company that manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products.
The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand.
Cresco Labs Inc (OTCMKTS:CRLBF) operates a Hope Heal Health dispensary in Fall River, Bristol County, Massachusetts.