3 Reasons Green Thumb Industries Stock (CNSX:GTII) (OTCMKTS:GTBIF) Is A Great Pick Going Into 2020

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.

Bottom line

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.