You’re reading this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news. We no longer send these by email as we did in the past, but we post this and all of the newsletters on our website here.
Friends,
Yesterday after the close, Green Thumb Industries reported its 4th quarter, and two other large MSOs reported this morning. So far, the results have been a bit better than expected overall. All three are rallying so far today, but each is down a lot year-to-date:
The Global Cannabis Stock index hit an all-time low on Wednesday and closed at that level of $6.00. Cannabis stocks continue to be very beaten up. As I type, the index has broken that low and is at 5.99 right now, which is down 12.9% year-to-date. The MSOS ETF at 3.24 is down 15.0%. I favor the Amplify Seymour Cannabis ETF over this one, and CNBS this month has dropped 4.5%, which is similar to the 5% drop in MSOS. Both own significant amounts of these three MSOs that reported this week.
I shared previews of these earnings reports with my 420 Investor subscribers ahead of the reports, and I have reviewed the 10-K filings and listened to the conference calls for each of these. I like Verano’s valuation and own a lot in my model portfolio, and I own no GTI or Trulieve. My big takeaway is that while the revenue and adjusted EBITDA were ahead of expectations for these two, their growth isn’t that great. I like the GTI balance sheet, and Trulieve’s scares me.
We get more reports next week, and hopefully the entire industry is experiencing better-than-expected growth. Cannabis stocks are seemingly very cheap overall, but the risk of 280E taxation remaining is quite high. I continue to have more exposure to the MSOs than the New Cannabis Ventures Global Cannabis Stock Index has, but my exposure to Canadian LPs is higher. Let’s hope for better times!
Sincerely,
Alan
New Cannabis Ventures publishes curated articles as well as exclusive news. Here is what we published this past week:
Exclusives
Big Cannabis Companies Are Set to Report Q4 Financials
Canadian Cannabis Sales Soared in December
Illinois Cannabis Sales Drop in January
Financial Reports
GTI Revenue and Adjusted EBITDA Were Better Than Expected
Trulieve Q4 Revenue Lifts as Adjusted EBITDA Soars
Verano Q4 Falls Slightly Below Expectations
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