You might ask, what is going on with Curaleaf Holdings, Inc. (CSE:CURA) (OTCMKTS:CURLF)? The stock has taken a significant hit, falling to record lows.
However, when it comes to Curaleaf, investors should not be distracted by the plunge in the stock because it isn’t an isolated case. Cannabis stocks have generally declined in recent months, in part of because of some investors booking profits following a boom in cannabis stocks early this year, as the chart shows. Moreover, cannabis regulation continues to be a lingering concern in the mind of investors. Consequently, cannabis stocks have been susceptible to big swings depending on how investors read the regulatory atmosphere.
While Curaleaf has plunged to record lows for the year, you cannot dispute that the company is building a great business for the long-term and that there exist multiple catalysts to drive the stock up from current levels.
Based in Massachusetts, Curaleaf describes itself as the leading vertically integrated multi-state cannabis operator in the US. The company currently operates in 12 states and runs 49 cannabis shops. It has 14 cannabis cultivation facilities and 13 processing sites. Its business spans both medical and adult-use cannabis markets.
Curaleaf updates on Select brand acquisition. The cannabis market continues to expand in the US. At least 33 states have legalized cannabis in one way or the other. Efforts continue to make cannabis legal at the federal level, or at least eliminate some barriers for cannabis companies.
Senator Bernie Sanders, a top candidate in the Democratic presidential nomination, recently laid out his plan for federal legalization of cannabis. Sanders plans to legalize cannabis at federal level within his first 10 days in the White House.
In addition to Sanders’ pot legalization plan, Congress is also working on ways to remove barriers for cannabis companies in states where pot has been legalized. Last month, US House lawmakers passed a bill that seeks to allow big banks to do business with cannabis companies. Presently, big banks have mostly shunned cannabis companies for fear of running afoul of federal regulators. Consequently, many cannabis companies have limited access to banking services such as loans to develop their businesses. The Senate will weigh on the so-called SAFE Banking Act passed in the House before it becomes law.
Curaleaf is positioning itself to take full advantage of the existing cannabis market in the US. Moreover, the company is preparing itself to be able to hit the ground running in an expended market when pot finally becomes legal at the federal level. To do this, Curaleaf has turned to making strategic acquisitions.
In May, Curaleaf struck a deal to acquire a cannabis business called Select from its owner Cura Partners. Select runs cannabis manufacturing and processing operations. It has also built a distribution and marketing network completed with retail outlets for its Select-branded cannabis products. The acquisition of Select will help expand Curaleaf’s business in both medical and adult-use markets.
On October 30, Curaleaf provided an update on the status of its Select acquisition deal. Firstly, Curaleaf said it had amended the terms of its Select acquisition in a way that will reduce the upfront cost of purchasing the business. Secondly, Curaleaf said that it now expects to close the acquisition in January 2020 after a waiting period for closing the transaction ended.
“The amended terms of the acquisition that we have agreed to with Select reflect our commitment to executing a prudent investment strategy that is in the best interests of our shareholders. We remain extremely confident in the strength and operations of the Select business and of the long-term prospects of the cannabis sector as a whole,” commented Joseph Lusardi, CEO of Curaleaf.
Curaleaf insiders loading up on the stock. Boris Jordan, Curaleaf’s executive chairman, recently boosted his holding in the stock. Jordan purchased 100,000 shares, and wait, he purchased the shares on the open market at an average price of $8.21. Curaleaf is currently trading at $5.20.
“This is an exciting time for Curaleaf and our industry, and I have never been more confident in our future. Curaleaf is well positioned for long-term growth and profitability,” Jordan stated in explaining why he is bullish on Curaleaf stock.
Seeing how Curaleaf is positioning itself for long-term growth and considering the stock is off about 60% from its highs this year, Curaleaf looks to be a comeback candidate currently available at a discount entry opportunity.
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Disclosure: We have no position in CURLF 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…