Acreage Holdings Stock(CNSX:ACRG.U) (OTCMKTS:ACRGF) has been caught up in the broad selloff that has hit the marijuana sector in recent months, sending many marijuana stocks, big and small, to their record lows. In the case of Acreage, the stock recently fell to its all-time low. But there is a bright side to the selloff: it has brought Acreage to the point where it looks to be a big bargain. In this article, we examine 5 reasons investors may want to seize the early opportunity and load up on Acreage right now.
About Acreage Holdings Stock
Acreage is headquartered in New York City. It describes itself as one of the largest vertically integrated cannabis companies in the United States. It has operations across 20 US states and still wants to expand its business. Some 33 states have legalized marijuana in one form or the other. Therefore, Acreage has over a dozen more states to expand into as it works to create more shareholder value.
Is Acreage Holdings stock a buy right now? Here are 5 reasons you may want to add Acreage to your portfolio.
Acreage continues robust revenue growth
In at least the last three quarters, Acreage has reported triple-digit revenue growth. Acreage reported revenue growth of 307% year-over-year to $22.4 million in the third quarter. Revenue increased by 501% in the second quarter and 487% in the first quarter.
“The third quarter was highlighted by tremendous progress of our long-term plan. We launched great cannabis brands that are receiving strong influencer praise, continued building out our wholesale businesses across our national footprint, and achieved 100 percent retail distribution in the fast growing market of Pennsylvania,” Kevin Murphy, CEO of Acreage, commented about the third quarter results.
In addition to the strong revenue growth, investors will also be happy to know that Acreage is in the process of securing financing to fund its expansion and acquisition activities.
Acreage to expand its business with the acquisition of Compassionate Care Foundation
Acreage recently announced a plan to acquire a 100% equity interest in the Compassionate Care Foundation (CCF). The acquisition will help Acreage expand its business in New Jersey, one of the states with very promising marijuana markets. The medical marijuana market in New Jersey is expected to generate $317 million in revenue by 2022. But the marijuana market in New Jersey should be bigger upon legalization of pot for recreational use.
CCF is licensed to run marijuana cultivation, manufacturing and retail operations in New Jersey. It currently operates one of the largest indoor growing facilities in the state. Once it completes the acquisition, Acreage wants to expand CCF’s facility in anticipation for the legalization of recreational marijuana in New Jersey. The acquisition of CCF should help Acreage continue driving robust revenue growth.
Congress working to expand the market for Acreage
Acreage could have a much bigger market for its products domestically if a bill that House lawmakers are pushing through comes into law. The House Judiciary Committee recently passed a bill that seeks to decriminalize marijuana. The bill will be put to a full House vote and if successful will advance to the Senate. Although a Senate success for the bill is not guaranteed, it is worth noting that the Senate has some of the staunchest supporters of marijuana legalization. Senator Bernie Sanders, for instance, has promised to exercise executive power to fast-track marijuana legalization at the federal level if he wins the White House in next year’s election.
Since marijuana is currently illegal under federal laws, marijuana businesses have not only a limited market but also limited funding opportunities. For example, big banks generally fear to lend to marijuana businesses lest they run afoul of federal regulators. Therefore, Acreage stands to benefit from the federal legalization of marijuana.
Acreage ties up with one of the world’s largest and well-known marijuana companies
The legalization of marijuana at the federal level is set to bring double benefits for Acreage. Early this year, Acreage agreed to join forces with Canopy Growth (NYSE:CGC) in a merger deal as the two seek to maximize their opportunities in the marijuana market. Canopy is one of the world’s most prominent marijuana companies. However, the Acreage-Canopy deal will only happen once marijuana becomes federally legal in the US.
Acreage’s currently depressed valuation allows investors to get the stock at a steep discount
Acreage has dropped more than 75% from its all-time highs. Although the big plunge may worry some investors, that looks to be a blessing in disguise. As Acreage looks poised for a powerful comeback, getting on board right now by taking advantage of the stock’s currently depressed valuation can deliver excellent returns.
Acreage is one of the marijuana companies working to position themselves not just to take full advantage of the existing market opportunity, but a bigger market in the future when marijuana becomes federally legal. The stock recently plunged to its record lows but it has refused to stay at the bottom. The stock closed up in the last two sessions, signaling a rebound.
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Disclosure: We have no position in Acreage Holdings stock and have not been compensated for this article.
Forget APHA and ACB, Buy GTBIF and TCNNF
There are a lot of misconceptions going on when it comes to US legalization. Many investors are buying Aphria (APHA) and Aurora Cannabis (ACB) hoping to bank on what’s happening in the US. However, they are Canadian Licensed Producers and have no business in the US. Investors are buying them because they trade on the major exchanges, but that is the wrong move. The correct move is to buy the US multi-state operators like Green Thumb Industries (GTBIF) and Trulieve Cannabis (TCNNF).
On Election Day voters in New Jersey, Arizona, Montana and South Dakota voted to legalize recreational marijuana. South Dakota and Mississippi voters also approved measures to legalize medical marijuana.
There’s also the prospect of a more pot-friendly White House with President-elect Joe Biden. Vice Presidential Candidate Kamala Harris said at the debate a Biden administration would decriminalize marijuana at a federal level and expunge criminal records of people with marijuana-related offenses.
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves.
Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection.
The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 96…
What Do Investors See In Medical Marijuana Stock (OTCMKTS:MJNA)?
Medical Marijuana Stock (OTCMKTS:MJNA) has emerged as one of many investor’s favorite pot stocks in the legal cannabis universe in 2020. The stock is already up about 10% in 2020, demonstrating how investors have warmed up to the stock early on in the New Year.
Following a disastrous 2019, cannabis investors lost money but have also learned that their best bets are stocks with strong fundamentals. They are looking for companies that have positioned themselves well in the cannabis industry and have what it takes to go for the opportunities. That is why MJNA stock is catching a lot of investor attention in 2020 because of how it has positioned itself in the cannabis market.
Robust revenue growth and strong financial position have also helped put MJNA on the radar of investors hunting for quality cannabis stocks. Revenue at MJNA more than doubled from $26.5 million in 2017 to $60 million in 2018. MJNA is also not in financial distress as may be the case with other cannabis companies out there. The company finished the third quarter, the most recent reported period, with $5.5 million in cash reserves.
Moreover, MJNA has recently taken steps to expand into new international markets and invest in companies that are leaders in their segments. These prudent actions are helping lift Medical Marijuana stock as more investors learn about them.
About Medical Marijuana stock
Is Tilray Inc (NASDAQ:TLRY) A Buy Or Sell?
For Tilray Inc (NASDAQ:TLRY) and the rest of cannabis stocks, 2019 was no doubt a bad year. But 2020 is shaping up to be a promising year for the stock. To start with, Tilray stock has already gained 8.35% year-to-date. If that says anything, it shows following the broad selloff in Tilray stock last year, we’ve got to a point where sellers are giving way to buyers in the stock.
There are several catalysts that should continue driving NASDAQ:TLRY as you’re about to see. First, below is a brief profile of the company we’re discussing.
Tilray is a Canada-headquartered global cannabis company. It is engaged in activities of cannabis cultivation and processing as well as marketing and distribution of cannabis products. Tilray already has several cannabis products brands to its portfolio. It operates across five continents through subsidiaries in Canada, Australia, Germany, and Portugal.
Following the broad collapse of cannabis stocks in 2019, investors are looking for cannabis stocks that can make a positive impact on their portfolios in 2020. Tilray stands out as an attractive cannabis stock pick in 2020. Here are some of the exciting things about the company.
Tilray CEO sees a bright future for the cannabis industry
On January 25, Tilray CEO Brendan Kennedy spoke on Bloomberg. In that interview, Kennedy framed a rosy outlook for the…