For investors hunting for great opportunities in the marijuana sector, Trulieve Cannabis Corp (CNSX:TRUL) (OTCMKTS:TCNNF) is definitely a strong candidate. Trulieve is one of the stocks leading the recovery from the recent broad selloff in the marijuana sector that has left many marijuana stocks at their 2-year lows.
A recovery that began unfolding in September, marked by episodes of profit-taking along the way, has seen Trulieve bounce back strongly from the bottom it sank to in August. At $12, the stock has gained about 60% since late August, and it looks poised to move even higher.
While Trulieve has regained much of the ground it lost in recent months amid a widespread selloff in the marijuana sector, there still exists huge upside potential in the stock.
Firstly, Trulieve is still more than 30% off its 2019 peak, so there is still ample room for the stock to rally. Moreover, Trulieve enjoys strong competitive advantages as well as great growth potential, which should continue to support robust revenue growth at the company and propel the stock to greater highs.
About Trulieve Cannabis
Trulieve is an American marijuana company whose business is currently concentrated in Florida. The company combines retail stores and home delivery to increase access to its products and build a loyal customer base in the process. Trulieve has set its sight on expanding into California, Massachusetts and Connecticut marijuana markets as it pursues more growth opportunities.
Trulieve Cannabis enjoys strong competitive advantages
Trulieve was the first company to enter Florida’s marijuana market, which is currently for medical products as the state has not yet legalized recreational use of marijuana. Being the first-mover in Florida has brought many benefits to Trulieve. For example, the company has dominated Florida’s medical marijuana market, boasting about 55% market share. Trulieve wants to expand its Florida market share even further.
To increase access to its products in Florida, Trulieve has been growing its retail footprint in the state. The company currently operates 39 marijuana stores in Florida and aims to open more in the coming weeks as it targets to ends the year with 44 stores. In addition to opening more stores to be closer to its customers, Trulieve also offers home delivery of its products. The store and home delivery strategies are fueling sales at Trulieve as the company continues to build a base of loyal customers. Trulieve’s revenue grew 150% year-over-year to $70.7 million in the third quarter.
“Our third-quarter results reflect our continued customer loyalty, growth, and leadership position,” commented Trulieve CEO Kim Rivers.
Trulieve’s growth potential is enormous
The marijuana industry in Florida is poised for a big boom. Florida’s marijuana industry will generate more than $1.6 billion in revenue by 2022, from less than $630 million in 2018, according to projections by ArcView Market Research and BDS Analytics. Therefore, on top of being the third most populous US state, Florida is on track to become the nation’s third-largest marijuana market by revenue. Florida’s marijuana market could grow even bigger considering the strong support for efforts to also legalize recreational use in the state.
In addition to Florida, Trulieve has also set its sight on the California, Connecticut, and Massachusetts marijuana markets. California has the largest marijuana market among the US states. California’s marijuana market is on track to more than double in three years to reach $5.6 billion in revenue by 2022, from $2.5 billion in 2018. The marijuana market in Connecticut generated $84.6 million in revenue in 2018 and is expected to reach $208 million by 2022. The marijuana market Massachusetts was worth $220 million in revenue in 2018 and is expected to grow to $1.1 billion by 2022.
Therefore, Trulieve is playing for an $8.5 billion revenue opportunity in just the three states of Florida, California, Connecticut, and Massachusetts. The growth opportunity for Trulieve is even bigger considering that some 33 states have passed some forms of marijuana legalization. Moreover, there are efforts in Congress to make marijuana legal all across the US by ending the existing federal ban on the substance, which should go a long way into expanding the market opportunity for Trulieve.
Trulieve Cannabis is in solid financial standing
Trulieve is one of the few truly profitable marijuana companies. The company made a net profit of $60.3 million in the third quarter. Being profitable has helped Trulieve build a strong war chest. The company finished the third quarter with a cash reserve of more than $100 million.
For investors looking for a marijuana stock with strong competitive advantages, huge growth potential and solid financial standing, Trulieve Cannabis is definitely worth considering.
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Disclosure: We have no position in Trulieve Cannabis 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…