In about eight days we will bid 2019 goodbye. For marijuana stock investors, 2019 has been a disappointing year and one to forget. This is the year that has seen many marijuana stocks plunge to their multi-year lows. Going into 2020, investors are looking for pot stock that can make them happy and forget the pain of 2019. Green Thumb Industries Stock (CNSX:GTII) (OTCMKTS:GTBIF) stands out as one of those marijuana stocks that could deliver excellent returns for investors in the New Year.
At $8/share, Green Thumb Industries stock is currently at its lowest price in about two years. But that is not where the stock belongs. As recently as April, the stock was trading above $16. A broad selloff in marijuana stocks this year hit Green Thumb Industries, resulting in the current depressed price. But this is a stock that could easily double in price as investors come to appreciate its strength.
About Green Thumb Industries stock
For investors who may have just come across Green Thumb Industries stock for the first time, here is a brief profile of the company.
Green Thumb Industries stock is an America marijuana company headquartered in Chicago, Illinois. The company’s business encompasses cultivation, processing retail of marijuana products. Green Thumb Industries already has several successful marijuana product brands for both medical and recreational markets. Green Thumb Industries was founded in 2014 and currently operates in 12 states across the United States.
Here are the three reasons we believe Green Thumb Industries stock stands out as a great marijuana stock pick heading into 2020.
- There is strong demand for Green Thumb Industries products
Green Thumb Industries is not struggling to find market for its products as may be the case with other marijuana companies. Rapidly growing sales are a testament to strong demand for Green Thumb Industries products. The company has maintained triple-digit revenue growth through the first three quarters of 2019. In the third quarter, for instance, Green Thumb Industries reported revenue growth of 296% year-over-year. The revenue growth accelerated from 228% in the second quarter, which had also accelerated from 155% in the first quarter.
Green Thumb Industries generated revenue of $63 million in 2018. But it is now on track to deliver a more than threefold revenue growth to over $200 million in 2019.
- Green Thumb Industries has substantial cash reserve to support its growth plans
Green Thumb Industries finished the third quarter with $66.1 million in cash reserve. That goes on to show the company has adequate liquidity and financial flexibility to fund its development projects and take full advantage of growth opportunities in front of it.
The company has been expanding both its manufacturing capacity and distribution network to meet growing demand for its products. Therefore, that calls for the company to have ready cash to finance its expansion programs.
Green Thumb Industries has found a new way to raise funds for its development. Last month, the company sold its cultivation and manufacturing facility in Danville, Pennsylvania. It sold the facility for $20.3 million but may receive an additional $19.3 million. The company intends to use proceeds from the property sale to support strategic expansion initiatives. But the sale of the Danville facility will not affect production at Green Thumb Industries. The company entered into a lease back arrangement with the buyer of the Danville facility to allow it to continue using the property for many years to come.
- Marijuana market in Green Thumb Industries’ home state of Illinois is about to explode
Illinois’s marijuana market is about to explode. The sale of recreational marijuana products is set to begin in Illinois in the new year. That will significantly expand the market opportunity for Green Thumb Industries in its home state, allowing the company to continue its robust revenue growth.
But Illinois is not the only growth bright spot for Green Thumb Industries. It is opening more retail locations and breaking ground in new states. In August, Green Thumb Industries acquired Fiorello Pharmaceuticals to enter the New York marijuana market. Fiorello is one of only 10 companies approved to operate medical marijuana businesses in New York.
“We believe entry into New York is an important milestone as we empower the right to wellness through responsible increased access to cannabis and are privileged to serve the people of New York seeking relief and an enhanced quality of life,” commented Ben Kovler, CEO of Green Thumb Industries.
Green Thumb Industries has opened more than a dozen new retail stores as it works to extend its retail footprint be closer to its customers. It has recently opened stores in Connecticut and New Jersey.
Green Thumb Industries stock has all it takes to keep growing it sales and continue investing to take full advantage of the opportunities that America’s cannabis market offers. Therefore, looking at its bright prospects, Green Thumb Industries stock looks to be a great bargain at current levels.
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Disclosure: We have no position in Green Thumb Industries stock and have not been compensated for this article.
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…
Is Cronos Stock (TSE:CRON)(NASDAQ:CRON) A Buy?
Cronos Stock (TSE:CRON)(NASDAQ:CRON) stock fell 9.22% on January 24, marking its steepest decline so far in 2020. The stock plunge followed an important disclosure that you would only expect from a company that is trying to be straight and transparent with investors. Here’s what happened.
On January 22, after market close, Cronos made a regulatory filing detailing changes in its executive team. In that SEC filing, Cronos revealed that David Hsu and William Hilson have stepped down as its chief operating officer and chief commercial officer, respectively. Unfortunately, some investors read bad news in the executive exits and sold their shares in Cronos.
But a careful reading of the filing doesn’t seem to raise any red flags. Therefore, the big stock plunged points to investors panicking to the degree of responding to a mosquito bite with a missile.
There is no doubt that 2019 was a difficult year for cannabis stocks and Cronos Stock is no exception. But before the uncalled for reaction to Cronos’s regulatory filing, we had been at a point where sellers were starting to give way to buyers in Cronos stock. The stock has gained about 8.0% in the past one month. It had gained more than 13% year-to-date before the January 24 big selloff.
About Cronos Stock
Cronos Stock is a Canada-based global cannabis company. Cronos operates through subsidiaries and…