Senator Kamala Harris – running mate on the Joe Biden presidential ticket – confirmed our thesis in her debate with vice president Pence last week: the Biden administration is looking to decriminalize marijuana at the federal level.
“We will decriminalize marijuana and we will expunge the records of those who have been convicted of marijuana,” the Democratic vice-presidential nominee said. “Times have changed — marijuana should not be a crime. We need to start regulating marijuana and expunge marijuana convictions from the records of millions of Americans so they can get on with their lives. As marijuana becomes legal across the country, we must make sure everyone — especially communities of color that have been disproportionately impacted by the war on drugs — has a real opportunity to participate in this growing industry.”
With the Biden ticket now enjoying the most dominant lead any non-incumbent challenger has ever held in election polling, this adds up to a comfortable bet for markets. That reality joins a context defined by a slate coming in few weeks of a number of states ready to likely pass legislation opening up new markets for cannabis plays.
With that in mind, we take a look at a few of the most compelling stocks in the space, including: GrowGeneration Corp (OTCMKTS:GRWG), Curaleaf Holdings Inc (OTCMKTS:CURLF), Cannabis Global Inc (OTCMKTS:CBGL), and Trulieve Cannabis Corp (OTCMKTS:TCNNF).
GrowGeneration Corp (OTCMKTS:GRWG) is the clear momentum leader in the cannabis space over recent months, with shares garnering popularity among the Robinhood crowd, leading to bouts of huge gains in the stock in that time as it plays out the pick-and-shovel niche leadership role on message boards around the net.
The company trumpets itself as a retail hydroponic and organic gardening play in the US market, with a clear ecommerce presence already in place. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
GrowGeneration Corp (OTCMKTS:GRWG) just announced its acquisition of Hydroponics Depot, Phoenix’s largest indoor and outdoor garden center. With the addition of Hydroponics Depot, GrowGen’s portfolio of hydroponic garden centers now includes 29 stores across 11 states.
According to the release, GrowGen’s entry into the Arizona market comes as voters consider Prop 207, which would legalize limited possession, cultivation and use of marijuana for adults ages 21 years or older. If approved, it is estimated that Arizona’s cannabis market could grow from over $700 million market in 2020 into a $2 billion market, including both recreational and medical marijuana.
And the stock has been acting well over recent days, up something like 9% in that time. Shares of the stock have powered higher over the past month, rallying roughly 18% in that time on strong overall action.
GrowGeneration Corp (OTCMKTS:GRWG) pulled in sales of $43.5M in its last reported quarterly financials, representing top line growth of 123%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($14.8M against $18.8M, respectively).
Curaleaf Holdings Inc (OTCMKTS:CURLF) is perhaps the cannabis multi-state operator destined to become the biggest over the next decade. The company operates as an integrated medical and wellness cannabis player, with a focus trained on the US market.
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) recently announced new Curaleaf dispensary branding for all of the Company’s recently acquired Arrow Alternative Care and GR Companies, Inc. dispensary locations in Connecticut. Curaleaf is the largest national retail dispensary brand in the U.S., and a premium mainstream cannabis brand available in 23 states as well as across a wide range of innovative products and form factors.
Joseph Lusardi, Chief Executive Officer of Curaleaf, said: “Building on our market leading position in Connecticut, we’re pleased to bring the Curaleaf branding to all four of our local medical cannabis dispensaries in the state. The rebranding of these locations directly aligns with our strategy of building strong, national brands that are renowned for high-quality products, backed by science, that deliver exceptional customer satisfaction. With our Curaleaf brand in health and wellness, and our Select brand ranked as the #1 cannabis oil brand, we remain focused on providing our products directly to an expanding range of Connecticut patients. Overall, we are extremely proud to be active partners within these local communities and we look forward to building long-lasting relationships with them.”
And the stock has been acting well over recent days, up something like 24% in that time. Shares of the stock have powered higher over the past month, rallying roughly 29% in that time on strong overall action.
Curaleaf Holdings Inc (OTCMKTS:CURLF) generated sales of $162.8M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 25.4% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($167.2M against $176.4M, respectively).
Cannabis Global Inc (OTCMKTS:CBGL) is the most speculative name in this pool, but that may also represent potential growth upside given its foundation of strong IP and the company’s recent shift to commercial-stage operations and the birth of topline growth.
The company has some interesting emerging products, with an emphasis on CBD and cannabinoid-based products, including a hemp-based sweetener that just went live on Amazon as well as a very interesting alcohol-substitute product that reportedly allows for the creation of cocktails containing no alcohol that give the consumer a buzz on par with light alcohol consumption.
It is also working on a potential weight loss solution based on the rare Tetrahydrocannabivarin (THCV) compound, which the company may be able to uniquely produce at commercial scale, in theory, based on provisional patents in application with the USPTO.
Cannabis Global Inc (OTCMKTS:CBGL) looks even better this morning after releasing a pre-announcement of its fiscal year ended August 31, 2020, which apparently included a massive jump in asset values related to company investments. According to the release, Cannabis Global expects the balance sheet to show approximately $2,396,558 in total assets, up from $807,824 as of the end of the quarter ending May 31, 2020, representing a huge 200% jump on a sequential quarterly basis.
“We recently made acquisitions of two valuable assets within the cannabis and hemp marketplaces,” commented Arman Tabatabaei, CEO of the Company. “We have made great progress in only one year developing some strong technologies, filing several provisional patents, and launching some of the industry’s most innovative products. We feel strongly that the expected significant increase in our assets, will more accurately reflect the value we have created for our shareholders.”
Cannabis Global Inc (OTCMKTS:CBGL) generated sales of $20K, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 0% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($85K against $2.8M, respectively).
Trulieve Cannabis Corp (OTCMKTS:TCNNF) might rightly be thought of as one of the anointed next-gen/next-leg leaders in the cannabis market. The company 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 Cannabis Corp (OTCMKTS:TCNNF) just announced the opening of its latest Florida dispensary. Delray Beach will be home to the Company’s 61st dispensary in its home state of Florida and 63rd nationwide. The 4,100 sq. ft. location will directly support patients throughout Southeast Florida.
“Opening a new store in Delray Beach, especially right now, truly feels like a celebration. Our growth in Florida is in large part thanks to the support we’ve received from our dedicated Trulievers and we look forward to continuing to grow as part of this community for many years to come,” said Trulieve CEO Kim Rivers. “Our focus is on ensuring patients have access to their daily, regular medications and that encourages us to meet patients where they are and become a part of their communities.”
If you’re long this stock, then you’re liking how the stock has responded to the announcement. TCNNF shares have been moving higher over the past week overall, pushing about 15% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 6% in that time on strong overall action.
Trulieve Cannabis Corp (OTCMKTS:TCNNF) generated sales of $167.3M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 29.5% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($204.7M against $136.3M).
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