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Why Pot Stocks Should be on the Radar (TCNNF, GRWG, SGMD, CURLF)

Huge margins and a rapidly expanding total addressable market (TAM). That’s the answer. It’s just about all you need to know as far as why taking a good hard look at cannabis stocks may make sense for investors.

In terms of margins and relative change in TAM over time through shifts in the legislative landscape, there’s no other market space that offers the same powerful opportunity in the years ahead according to analysts and growth managers.

The stocks in the space took a huge hit into what suggests itself as a possible cycle low in an ongoing structural expansion, and the problems are the balance sheets of the former leaders, which has tainted perception of the space. But ACB, TLRY, CGC, and their ilk don’t really reflect the broad dynamics in play, which may set the stage for a powerful period ahead for the leaner, meaner names in the space.

And a looming election that promises to expand the TAM further through more state legalizations has the ability to act as a big catalyst ahead.

As such, we put together a list of some interesting stocks in the space that could represent strong opportunities for speculators over the coming period, including: Trulieve Cannabis Corp (OTCMKTS:TCNNF), GrowGeneration Corp (NASDAQ:GRWG), Sugarmade Inc (OTCMKTS:SGMD), and Curaleaf Holdings Inc (OTCMKTS:CURLF).

 

Trulieve Cannabis Corp (OTCMKTS:TCNNF) engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States. It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.

According to company materials, Trulieve is a vertically integrated “seed to sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) just announced the launch of two new flavors to the TruPowder line: Vanilla Cream and Lemon. The TruPowder flavors will be available in all dispensaries across Florida starting today. TruPowder is a Nano-encapsulated Cannabinoid powder. Using cutting edge and state of the art technology TruPowder uses sound waves (sonication) to achieve incredibly small nano-sized Cannabinoids which are then encapsulated.

“Trulieve is excited to be launching our newest flavors of Vanilla Cream and Lemon to our TruPowder line. We are focused on delivering an exceptional and differentiated customer experience, and that includes offering the broadest selection of high-quality cannabis products,” said Trulieve CMO Valda Coryat. “Trulieve continues to be the leading source for both quality and accessibility, and were first to offer ingestible products in the state of Florida.  With our newest TruPowder flavors, that will further extend our variety of cannabis offerings for Florida patients.”

If you’re long this stock, then you’re liking how the stock has responded to the announcement. TCNNF shares have been moving higher over the past week overall, pushing about 7% to the upside on above average trading volume.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) pulled in sales of $167.3M in its last reported quarterly financials, representing top line growth of 115.9%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($204.7M against $136.3M).

 

GrowGeneration Corp (OTCMKTS:GRWG) owns and operates retail hydroponic and organic gardening stores in the United States.

Currently, GrowGen has 27 stores, which include 5 locations in Colorado, 5 locations in California, 2 locations in Nevada, 1 location in Washington, 4 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma, 1 location in Oregon, 3 locations in Maine and 1 location in Florida. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.

GrowGeneration Corp (OTCMKTS:GRWG) just announced that it believes it has uncovered fraudulent attempts to manipulate the Company’s stock.

On August 21, 2020, an organization calling itself “Hindenburg Research” published false and defamatory statements about certain Officers and Directors of the Company designed to provide a false impression to investors and to manipulate the market to benefit short sellers. According to the release, GrowGen intends to collaborate with law enforcement and regulators to ensure that any criminal activity is investigated and prosecuted. GrowGen will be taking steps to ensure that the organization ceases and desists from all illegal and otherwise wrongful activity. GrowGen will vigorously defend the value of the Company on behalf of shareholders and investors.

The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 6% in that timeframe. GRWG shares have been relatively flat over the past month of action, with very little net movement during that period.

GrowGeneration Corp (OTCMKTS:GRWG) managed to rope in revenues totaling $43.5M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 123%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($14.8M against $18.8M, respectively).

 

Sugarmade Inc (OTCMKTS:SGMD) operates in an expanding context broadly in the cannabis space, with a major stake and operational control in California cannabis delivery service, BudCars, representing a major part of the company’s strategic outlook.

Sugarmade’s BudCars model has been feasting on increasing market share during the pandemic for obvious reasons: cannabis consumers can order their favorite products and have them delivered right to the door in touchless convenience. That dynamic has presented SGMD shareholders with a dramatic boom over recent months.

Sugarmade Inc (OTCMKTS:SGMD), to further drive expansion for its shareholders, recently powered into the domain of verticalization and cultivation with its announcement of a lease agreement to take over a property where it plans to set up and operate a licensed cannabis cultivation business capable of producing as much as 3.6 million grams of high-quality cannabis flower per year in Northern California.

According to the release, the Company intends to market the cannabis through various distributors as both white-label and branded cannabis products, including through BudCars. The process of obtaining cannabis cultivation licensing for the Property has commenced, with the Company now preparing archaeological and biological surveys and assembling documentation related to the architectural and engineering plans for construction of greenhouses and a processing building. The full package has yet to be submitted, but management is in close communication with the County and County representatives have been very helpful with the process.

Jimmy Chan, Sugarmade’s CEO, commented, “We believe we have all of the strategic pieces in place to capitalize on cultivation, with the market currently chronically undersupplied. We also have relationships in place, especially through our BudCars investment, to hit the ground running on the branded products side, driving strong margins up and down the chain.”

Sugarmade Inc (OTCMKTS:SGMD) has been posting major growth updates on a regular basis over the past couple months as its BudCars model takes apparent flight. The rate of sales growth expected from the company in 2020 has walked up a steep ladder, with the latest guidance suggesting we could see it north of $30 million in annualized sales by year-end.

 

Curaleaf Holdings Inc (OTCMKTS:CURLF) operates as an integrated medical and wellness cannabis operator in the United States. Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles. The company also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations.

Curaleaf Holdings Inc (OTCMKTS:CURLF) recently announced the grand opening of Curaleaf Brandon, the company’s 31st location in Florida. The new location, located at 846 E. Brandon Blvd, is the third new dispensary in the Tampa / St. Petersburg / Clearwater metropolitan area this quarter.

Curaleaf is committed to serving the growing base of 394,000 registered medical patients in Florida, which is one of the nation’s fastest-growing medical cannabis markets in the country. In August, the company opened new dispensaries in Clearwater (2081 Gulf to Bay Blvd.) and South Tampa (3030 W. Gandy Blvd.). The company’s strategic expansion in the Tampa Bay area will provide patients and caregivers expanded access to high-quality medical cannabis products, including Select, America’s #1 cannabis oil brand.

And the stock has been acting well over recent days, up something like 6% in that time. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -7%.

Curaleaf Holdings Inc (OTCMKTS:CURLF) pulled in sales of $162.8M in its last reported quarterly financials, representing top line growth of 150.9%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($167.2M against $176.4M, respectively).

 

 

COMPENSATION DISCLOSURE: Section 17(b) of the 1933 Act requires publishers to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b): Tiger Global Management Partners LLC has compensated a third party to produce and present weekly content for various companies for the publication. For more information, please click here. In addition, this article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

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Marijuana MMJ Stocks

The Next Level for Cannabis Stocks (GRWG, CURLF, SGMD, APHA)

As we head into the upcoming election on November 3, investors should anticipate major shifts in market behavior.

The uncertainty surrounding this election is palpable, not just because of the intense polarization that marks our current political moment, but because of added uncertainty drawn from the fact that, in a recent Pew research poll, nearly 70% of republican voters said they would vote in person at the ballot box on election day while over 75% of democrats said they were likely to vote by mail.

As both parties work to lay down strategies to support the narrative around this transition that best aids their partisan cause, markets shiver in anticipation of widespread social disarray as both seek to delegitimize the other’s claim to the throne after January.

That could create a lot of capital motion in the weeks ahead, as big money managers scramble to diversify and capitalize on new themes. One of those new themes that could vacuum up a lot of wandering capital is in the cannabis space, as we run toward multiple new legalization votes on state ballots as well as the potential that a putative Biden administration might quickly move to decriminalize on a national level.

As such, we put together a list of some interesting stocks in the space that could represent strong opportunities for speculators over the coming period, including: GrowGeneration Corp (NASDAQ:GRWG), Curaleaf Holdings Inc (OTCMKTS:CURLF), Sugarmade Inc (OTCMKTS:SGMD), and Aphria Inc (NASDAQ:APHA).

 

GrowGeneration Corp (OTCMKTS:GRWG) trumpets itself as a company that, through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. Currently, GrowGen has 27 stores, which include 5 locations in Colorado, 5 locations in California, 2 locations in Nevada, 1 location in Washington, 4 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma, 1 location in Oregon, 3 locations in Maine and 1 location in Florida.

GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.

GrowGeneration Corp (OTCMKTS:GRWG) just announced that it believes it has uncovered fraudulent attempts to manipulate the Company’s stock. On August 21, 2020, an organization calling itself “Hindenburg Research” published false and defamatory statements about certain Officers and Directors of the Company designed to provide a false impression to investors and to manipulate the market to benefit short sellers.

According to the release, GrowGen intends to collaborate with law enforcement and regulators to ensure that any criminal activity is investigated and prosecuted. GrowGen will be taking steps to ensure that the organization ceases and desists from all illegal and otherwise wrongful activity. GrowGen will vigorously defend the value of the Company on behalf of shareholders and investors.

The stock has suffered a bit of late, with shares of GRWG taking a hit in recent action, down about -6% over the past week.

GrowGeneration Corp (OTCMKTS:GRWG) managed to rope in revenues totaling $43.5M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 123%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($14.8M against $18.8M, respectively).

 

Curaleaf Holdings Inc (OTCMKTS:CURLF) operates as an integrated medical and wellness cannabis operator in the United States. Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles. The company also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations.

Curaleaf Holdings Inc (OTCMKTS:CURLF) most recently announced the grand opening of Curaleaf Brandon, the company’s 31st location in Florida. The new location, located at 846 E. Brandon Blvd, is the third new dispensary in the Tampa / St. Petersburg / Clearwater metropolitan area this quarter.

Curaleaf is committed to serving the growing base of 394,000 registered medical patients in Florida, which is one of the nation’s fastest-growing medical cannabis markets in the country. In August, the company opened new dispensaries in Clearwater (2081 Gulf to Bay Blvd.) and South Tampa (3030 W. Gandy Blvd.). The company’s strategic expansion in the Tampa Bay area will provide patients and caregivers expanded access to high-quality medical cannabis products, including Select, America’s #1 cannabis oil brand.

The stock has suffered a bit of late, with shares of CURLF taking a hit in recent action, down about -4% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -19%.

Curaleaf Holdings Inc (OTCMKTS:CURLF) generated sales of $162.8M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 25.4% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($167.2M against $176.4M, respectively).

 

Sugarmade Inc (OTCMKTS:SGMD) operates now mostly through its controlling stake in BudCars, a leading California cannabis delivery company that operates on a traditional retail model with consistent 45-50% gross margins on cannabis inventory.

Sugarmade’s BudCars model has been feasting on increasing market share during the pandemic for obvious reasons: cannabis consumers can order their favorite products and have them delivered right to the door in touchless convenience. That dynamic has presented SGMD shareholders with a dramatic boom over recent months.

Sugarmade Inc (OTCMKTS:SGMD), to further drive that boom, recently announced that it is submitting an application to the California Bureau of Cannabis Control to expand into cannabis cultivation as part of a strategic plan to partially verticalize its BudCars model, a process that management strongly believes will further increase the Company’s gross profitability over the long-term and provide a rapid potential path to branded product development. The Company has already secured a property containing a 5,000 square-foot indoor premium cannabis cultivation facility located in very close proximity to its Sacramento BudCars hub.

Jimmy Chan, CEO of Sugarmade, noted, “BudCars is a high margin, high-growth business. But it will still benefit from verticalization. Because we have access to our end-market consumer directly and we have cultivation expertise and a premium grow facility, an expansion into cultivation to connect the dots is a clearly advantageous move. In addition, because BudCars is a rapidly growing distribution channel, we will have a clear edge in the marketplace in terms of the capacity to establish our own branded cannabis product line.”

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week.

Sugarmade Inc (OTCMKTS:SGMD) has been posting major growth updates on a regular basis over the past couple months as its BudCars model takes apparent flight. The rate of sales growth expected from the company in 2020 has walked up a steep ladder, with the latest guidance suggesting we could see it north of $30 million in annualized sales by year-end.

 

Aphria Inc (NASDAQ:APHA) has been setting the standard for the low-cost production of safe, clean and pure pharmaceutical-grade cannabis at scale, grown in the most natural conditions possible. Focusing on untapped opportunities and backed by the latest technologies, Aphria is committed to bringing breakthrough innovation to the global cannabis market.

The Company’s portfolio of brands is grounded in expertly-researched consumer insights designed to meet the needs of every consumer segment. “Rooted in our founders’ multi-generational expertise in commercial agriculture, Aphria drives sustainable long-term shareholder value through a diversified approach to innovation, strategic partnerships and global expansion, with a presence in more than 10 countries across 5 continents.”

Aphria Inc (NASDAQ:APHA) recently announced it has entered into a Strategic Supply Agreement with Canndoc Ltd., a subsidiary of InterCure Ltd. (TASE: INCR) (TASE: INCR.TA), one of Israel’s largest and most established medical cannabis producers.

According to the release, under the terms of the Agreement, Aphria will supply Canndoc with dried bulk flower over a two-year period, with the option to extend for two additional terms of two years each, and an option for an additional year after that if the parties agree to terms.  During the first two-year term and each additional term, if applicable, the Company will provide Canndoc with 3,000 kgs. of bulk dried flower, which will be processed into finished product, co-branded under the Aphria and Canndoc brand names, and sold exclusively within the Israeli market.

While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action APHA shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -4% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -3%.

Aphria Inc (NASDAQ:APHA) managed to rope in revenues totaling $152.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 18.4%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($497.2M against $170.4M).

 

COMPENSATION DISCLOSURE: Section 17(b) of the 1933 Act requires publishers to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b): Tiger Global Management Partners LLC has compensated a third party to produce and present weekly content for various companies for the publication. For more information, please click here. In addition, this article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Categories
Business CBD Marijuana MMJ

Why Pot Stocks Could be Set to Surge (APHA, CURLF, SGMD, GWPH)

As we continue to hunt for top opportunities across a variety of markets positioned to deliver potential outsized gains for interested investors this fall, we turn our attention to the cannabis space.

This may be one of the more interesting opportunities staring at market participants, ready to define the coming three months into the US election on November 3. In 2016, the cannabis space exploded in an orgy of speculative fervor, with stocks in the group moving up in some cases thousands of percentage points in value. While much of that was later reversed, the thematic energy around the progressive legalization agenda was a massive catalyst for stocks with related operations.

And so it may be once again this year. However, this time around, the group may be much better positioned for more sustainable gains in value given the drop in number of producers and the transition of productive assets from weak to strong balance sheets – two common fruits of contraction cycles.

With that in mind, we take a look here at a handful of companies that have executed at the top of the space on different dimensions in their own respective niches, including: Aphria Inc (NASDAQ:APHA), Curaleaf Holdings Inc (OTCMKTS:CURLF), Sugarmade Inc (OTCMKTS:SGMD), GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH).

 

 

Aphria Inc (NASDAQ:APHA) recently received a notable upgrade from Stifel analyst W. Andrew Carter, and then picked up more distribution partnerships to continue to show off the characteristics of a long-term group leader.

The company recently announced it has entered into a Strategic Supply Agreement with Canndoc Ltd., a subsidiary of InterCure Ltd. (TASE: INCR) (TASE: INCR.TA), one of Israel’s largest and most established medical cannabis producers.

According to the release, under the terms of the Agreement, Aphria will supply Canndoc with dried bulk flower over a two-year period, with the option to extend for two additional terms of two years each, and an option for an additional year after that if the parties agree to terms. During the first two-year term and each additional term, if applicable, the Company will provide Canndoc with 3,000 kgs. of bulk dried flower, which will be processed into finished product, co-branded under the Aphria and Canndoc brand names, and sold exclusively within the Israeli market.

Aphria Inc (NASDAQ:APHA) is a leading global cannabis company driven by “an unrelenting commitment to our people, product quality and innovation.”

Headquartered in Leamington, Ontario – the greenhouse capital of Canada – Aphria has been setting the standard for the low-cost production of safe, clean and pure pharmaceutical-grade cannabis at scale, grown in the most natural conditions possible. Focusing on untapped opportunities and backed by the latest technologies, Aphria is committed to bringing breakthrough innovation to the global cannabis market. The company touts itself as one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis.

The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 5% in that timeframe.

Aphria Inc (NASDAQ:APHA) generated sales of $152.2M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 5.8% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($497.2M against $170.4M).

 

Curaleaf Holdings Inc (OTCMKTS:CURLF) is the biggest in terms of its distribution footprint among all US multi-state players in the cannabis space, with more operational dispensaries than anyone else.

The company recently announced its Grassroots acquisition, which follows the Cura Partners acquisition to bring the Select brand of products into its portfolio. This activity pushes CURLF up to just shy of 72 dispensaries, with licensing room to open up another 50-60 across the legal national landscape in the US.

Curaleaf Holdings Inc (OTCMKTS:CURLF) promulgates itself as a company that operates as an integrated medical and wellness cannabis operator in the United States.

It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.

The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 9% in that timeframe. CURLF shares have been relatively flat over the past month of action, with very little net movement during that period.

Curaleaf Holdings Inc (OTCMKTS:CURLF) managed to rope in revenues totaling $162.8M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 150.9%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($167.2M against $176.4M, respectively).

 

Sugarmade Inc (OTCMKTS:SGMD) is an interesting prospect. This stock is obviously more speculative than the other names on this list. But that might also translate into being the most undervalued, given the tremendous growth data the company has started reporting over recent months.

As a case in point, the company recently issued its performance update for the month of July, where it saw total July BudCars gross sales come in at of $662,836, representing 32% month-over-month sales growth, which represents the fourth month in a row that we have seen that kind of monster monthly growth from this company.

In addition, the company reported total July BudCars gross profits of $310,489, representing 36% month-over-month gross profit growth. We also saw average daily gross sales increase 32% m/m to $22,095, total customer tickets increase 33% m/m to 5,579, and calendar Q3 move to a pace to potentially more than double calendar Q2 total BudCars sales. That means we are likely going to see BudCars post over 100% sequential quarterly growth.

Sugarmade Inc (OTCMKTS:SGMD) is a cannabis player that operates now mostly through its controlling stake in BudCars, a leading California cannabis delivery company that operates on a traditional retail model with consistent 45-50% gross margins on cannabis inventory.

Sugarmade’s BudCars model has been feasting on increasing market share during the pandemic for obvious reasons: cannabis consumers can order their favorite products and have them delivered right to the door in touchless convenience. That dynamic has presented SGMD shareholders with a dramatic boom over recent months.

Since Sugarmade took over control of BudCars in March, the outfit has posted 10% week-over-week sales growth basically at a minimum.

Sugarmade Inc (OTCMKTS:SGMD) has been posting major growth updates on a regular basis over the past couple months as its BudCars model takes apparent flight. The rate of sales growth expected from the company in 2020 has walked up a steep ladder, with the latest guidance suggesting we could see it north of $30 million in annualized sales by year-end, which would represent blow-out growth in 2020 for the company by any reasonable standard.

 

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) is a cannabis play as the global leader is total sales right now derived from the cannabis plant due to its industry leading treatments (based on non-THC cannabinoids) for a range of ailments, including epilepsy, Dravet syndrome, and Lennox-Gastaut syndrome.

The main drug it sells is epidiolex, which the company is pushing for label expansion beyond these limited conditions. Even so, it is doing north of $120 million per quarter right now in sales.

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) bills itself as a biopharmaceutical company that engages, as noted above, in discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant.

The company operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development. Its lead product is Epidiolex, an oral medicine which is in Phase III clinical development for the treatment of refractory childhood epilepsies, as well as for the treatment of Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms.

The company also develops and markets Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis. In addition, it develops various product candidates, which are in Phase I and II clinical development for the treatment of glioma, neonatal hypoxic-ischemic encephalopathy, adult epilepsy, and schizophrenia.

In total, over the past five days, shares of GWPH have dropped by roughly -6% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities.

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) managed to rope in revenues totaling $121.6M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 69.6%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($477.6M against $118.5M).

 

 

COMPENSATION DISCLOSURE: Section 17(b) of the 1933 Act requires publishers to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b): Tiger Global Management Partners LLC has compensated a third party to produce and present weekly content for various companies for the publication. For more information, please click hereIn addition, this article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Categories
Marijuana MMJ

Five Cannabis Stocks for the Win (CURLF, GTBIF, TCNNF, SGMD, CRLBF)

It’s not a mystery where to find strong growth. As the bull market rages on, driven by extreme monetary and fiscal policy support amid historic challenges, the only way for investors to truly lose the game is to not play. Just about anything else has been working.

But the chapter ahead will likely take a bit more nuance. The division between the pandemic plays and the rest of the market is obvious. And money managers diversifying between the two are doing well. But it’s not easy to find opportunities that have a viable long-term growth thesis but are still trading at a strong value relative to the market.

One area that could become of increasing interest is in the cannabis space, where the long-term growth outlook is tremendous, but flows have yet to surge into the space. Most cannabis plays are still trading at 1-2x sales despite forward topline growth forecasts above 20% over the coming four quarters.

That’s a disposition that is increasingly rare.

With that in mind, we take a look at five cannabis plays that are actively traded and continue to post strong performance data while making significant investments at a strong ROI, including: Curaleaf Holdings Inc (OTCMKTS:CURLF), Green Thumb Industries Inc (OTCMKTS:GTBIF), Trulieve Cannabis Corp (OTCMKTS:TCNNF), Sugarmade Inc (OTCMKTS:SGMD), and Cresco Labs Inc (OTCMKTS:CRLBF)

 

Curaleaf Holdings Inc (OTCMKTS:CURLF) recently announced the launch of Curaleaf Sublingual Tablets in Florida. These cube-shaped, berry-flavored bites will provide the state’s medical patients with a discreet, sugar-free yet fruity alternative form of medication.

According to the release, Curaleaf’s new Sublingual Tablets, which will be in 30-piece jars, contain 5mg of high-quality cannabis oil per piece, which allows patients to manage their treatment plan with confidence and ease. Each bite, which is made to be ingested orally or sublingually, is translucent in color and features a refreshing “Arctic Berry” flavor. The new product will be sold at all of the Company’s 28 operating dispensaries in Florida with a phased roll-out between August 8th – August 20th. Limited quantities will be released to pre-existing loyalty patients beginning tomorrow, July 30th.

Curaleaf Holdings Inc (OTCMKTS:CURLF) promulgates itself as a company that operates as an integrated medical and wellness cannabis operator in the United States. The Company is the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf, Inc. has a presence in 12 states.

Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.

Curaleaf Holdings Inc (OTCMKTS:CURLF) also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations. As of November 01, 2018, it operated a network of 29 dispensaries. The company was founded in 2010 and is headquartered in Wakefield, Massachusetts.

 

Green Thumb Industries Inc (OTCMKTS:GTBIF) recently announced that it opened Essence South Durango, on June 27. This has been one of the fastest growing MSO’s in the wider cannabis space.

According to the release, this is Green Thumb’s fifth Essence store in the Las Vegas area and 48th retail location in the nation. Profits from the first day of sales will be donated to Last Prisoner Project, a nonprofit coalition of cannabis industry leaders, executives, and artists dedicated to bringing restorative justice to the cannabis industry.

Green Thumb Industries Inc (OTCMKTS:GTBIF) bills itself as a company that manufactures and sells various cannabis products in the United States. The company’s cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topicals.

According to company materials, “Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE(TM) dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven highly regulated U.S. markets. Established in 2014, GTI employs more than 350 people and serves hundreds of thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business.”

Green Thumb Industries Inc (OTCMKTS:GTBIF) markets its products through third-party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name. The company was founded in 2014 and is headquartered in Chicago, Illinois.

 

Trulieve Cannabis Corp (OTCMKTS:TCNNF) just announced the opening of its latest storefront: Tarpon Springs will be home to the Company’s 53rd dispensary in the state of Florida and 55th nationwide.

According to the release, situated next to Lake Tarpon, the dispensary supports Trulieve’s goal of expanding and ensuring direct, reliable patient access to medical cannabis throughout the state. It also joins the Company’s 52 other Florida dispensaries, including those in nearby New Port Richey, Clearwater, and Tampa.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) promulgates itself as a company that, through its subsidiary, Trulieve, Inc., engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.

It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.

According to company materials, “Trulieve is a vertically integrated “seed to sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL.”

Trulieve Cannabis Corp (OTCMKTS:TCNNF) distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as takes orders online and by phone for delivery. As of November 20, 2018, the company operated 21 dispensaries. Trulieve Cannabis Corp. is headquartered in Quincy, Florida.

 

Sugarmade Inc (OTCMKTS:SGMD) is in the process of expanding into the LA area for its BudCars cannabis delivery business. This is likely to be a strong source of new strategic growth for a company that has already been posting sequential monthly growth above 30% on the topline for several consecutive months after making its flagship investment in BudCars.

At this point, based on recent disclosures from the company, we have a clear sense that, not only is the first LA location on track and simply awaiting some factors no doubt slowed by the pandemic – city council isn’t exactly on vacation right now. Crisis mode is the standard setting for most administrative affairs in local government around the country right now. However, the other key piece here is that the second LA BudCars location is ahead of schedule. That’s perhaps even more important here.

Sugarmade Inc (OTCMKTS:SGMD) also recently issued a mid-month performance update for the month of July, which was on pace to set multiple new Company performance records at the time for sales, gross profits, and total customer orders.

According to the release, as of July 14, the Company is now on pace to meet or exceed its target of $650,000 in total sales in July, with well over 5,000 individual customer orders likely this month, suggesting that sequential month-over-month topline growth will be at or above the Company’s target 30% level.

“Our BudCars Sacramento hub continues to demonstrate accelerating growth that suggests we still haven’t really found the ceiling here in terms of period-over-period upside potential,” commented Jimmy Chan, CEO of Sugarmade. “Ultimately, this is gratifying to see because we have taken a unique approach to retail cannabis product distribution.”

Sugarmade Inc (OTCMKTS:SGMD) has been posting major growth updates on a regular basis over the past couple months as its BudCars model takes apparent flight. The rate of sales growth expected from the company in 2020 has walked up a steep ladder, with the latest guidance suggesting we could see it north of $30 million in annualized sales by year-end.

 

Cresco Labs Inc (OTCMKTS:CRLBF) just announced additional actions in board refreshment and corporate governance to further strengthen its leadership in the cannabis industry, including its move to appoint Carol Vallone.

According to the release, Cresco has appointed Carol Vallone to its board of directors, effective immediately. Ms. Vallone is a well-known business leader, former CEO, and corporate board director, with a strong track record in launching, scaling, and managing global companies… In the past, Ms. Vallone served as President and Chief Executive Officer of leading E-learning companies including WebCT Inc., where she grew the online learning company to cover almost two thousand institutions in seventy countries. She has also served on multiple boards at leading non-profit healthcare, public financial services, and e-commerce organizations.

CRESCO LABS ORD (OTCMKTS:CRLBF) trumpets itself as a company that manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products.

The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand.

Cresco Labs Inc (OTCMKTS:CRLBF) operates a Hope Heal Health dispensary in Fall River, Bristol County, Massachusetts.

 

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Categories
Business CBD Marijuana MMJ Stocks

Pot Stocks Set for Biden Boost? (GRWG, CURLF, MCTC, TLRY)

The drumbeat to legalize cannabis is getting louder and louder in the US. Joe Biden is, by all accounts, starting to run away with the presidential takeover, relegating Mr. Trump to the history books as a rare one-term president, and potentially via a decisive landslide. Among other things, such an election result will suggest the incoming administration will have a mandate on certain core issues, one of which, surprisingly, seems to be cannabis legalization, or so say the smart folks at CIBC.

We should note that this is also speculation driven by polling and betting odds that show a strong likelihood that the democrats will take the Senate as well as the White House, while holding onto the House of Representatives, when they sweep through town in November.

Right now, betting site Predictit.org is showing Biden with a 63-40 price edge to win, and Democrats overall with a 62-39 edge in the “Who will control the Senate after 2020?” market.

Furthermore, because of the virus, the vote is likely to actually take place well ahead of November given the massive numbers expected to mail in their ballots this year to avoid crowded polling stations as possible transmission hot spots – and your typical mail-in vote is often penciled in weeks ahead of the official election day. In other words, if Trump is going to mount a comeback, he had better get moving because he has a lot of ground to make up, and only a matter of weeks in which to do it.

All of that takes us back to CIBC’s analyst projection out on Monday: if Biden wins, and the Dems control both houses of Congress, then expect the US to legalize weed for recreational use nationwide sometime in 2021. This makes perfect sense because it ties into what Biden will face as a critical issue in year one of his presidency: the specter of state bankruptcies across the country following the horrors of our collective battle with the virus. Legal weed reduces the burden of enforcement and creates a major tailwind in tax receipts. In other words, people will toke it up either way. But legal weed has a massive impact on state fiscal health.

What does that really mean?

It means that it’s time to get excited about Pot Stocks! With that in mind, here are a few interesting names in the space: GrowGeneration Corp (OTCMKTS:GRWG), Curaleaf Holdings Inc (OTCMKTS:CURLF), MCTC Holdings Inc (OTCMKTS:MCTC), and Tilray Inc (NASDAQ:TLRY).

 

GrowGeneration Corp (OTCMKTS:GRWG) trumpets itself as a company that, through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. GrowGen also operates an online superstore for cultivators, located at https://growgen.pro/.

GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.

GrowGeneration Corp (OTCMKTS:GRWG) just announced the pricing of an underwritten public offering of 7,500,000 shares of its common stock at an offering price of $5.60 per share. GrowGen expects the gross proceeds from the Offering to be approximately $42.0 million, before deducting the underwriting discount and other estimated offering expenses.

According to the company’s release, the Offering was upsized from the previously announced offering size of $35.0 million of common stock. GrowGen has also granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock offered in the public market. The Company expects to close the Offering on or about July 2, 2020, subject to the satisfaction of customary closing conditions.

It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things.

GrowGeneration Corp (OTCMKTS:GRWG) generated sales of $33M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 29.9% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($11.4M against $17.3M, respectively).

 

Curaleaf Holdings Inc (OTCMKTS:CURLF) operates as an integrated medical and wellness cannabis operator in the United States. CURLF is a major vertically integrated MSO cannabis operator with a strong presence that is expanding to 23 US states.

Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence. It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.

Curaleaf Holdings Inc (OTCMKTS:CURLF) recently announced that it closed its milestone acquisition of GR Companies, Inc., the largest private vertically-integrated multi-state operator in the United States, on July 23, 2020.

According to the release, with completion of the acquisition of Grassroots, Curaleaf is the world’s largest cannabis company by revenue and the most diversified vertically integrated cannabis company in the United States, the world’s largest cannabis market. The transaction expands Curaleaf’s presence from 18 to 23 states, with the combined company having affiliated operations spanning over 135 dispensary licenses, 88 operational dispensary locations, over 30 processing facilities and 22 cultivation sites with 1.6 million square feet of current cultivation capacity. Curaleaf’s expanded geographic dispensary presence now offers access to medical or adult use Cannabis to more than 192 million people, or roughly two-thirds of the United States population.

And the stock has been acting well over recent days, up something like 14% in that time.

Curaleaf Holdings Inc (OTCMKTS:CURLF) managed to rope in revenues totaling $129.8M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 177%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($251M against $177.1M).

 

Cannabis Global, Inc. (OTCMKTS:MCTC), currently still trading as MCTC Holdings (OTCMKTS:MCTC), is an R&D play in the CBD and cannabis markets. In a very interesting step, the company just moved into the cannabis delivery-based dispensary retail business through a release that dropped last week. In the release, officially, the company announced the closing of a definitive agreement to “enter the fast-growing California cannabis delivery market.”

According to the release, Whisper Weed, Inc. and Cannabis Global have created a new California Corporation to be named CGI Whisper W, Inc., which will provide management services for the delivery entity. CGI Whisper W, Inc, will receive 51% of the profits from the new entity, which will be recognized as income by Cannabis Global, Inc.

“The delivery sector is the hottest area of the California cannabis business and we are very pleased to have a seat at the table,” commented Arman Tabatabaei. “We not only will be able to grow our revenue base relative to direct delivery, but we also see Whisper Weed as a perfect platform to launch our infusion technologies in the regulated marketplace.  With the deal closing, we are already in the process of adding other delivery platforms and other businesses to our overall portfolio.”

Cannabis Global, Inc. (OTCMKTS:MCTC) views this agreement as an important step toward the verticalization of its IP-driven focus. Many of the technologies developed for CBD and non-THC marketplaces can be directly applied to the regulated California cannabis marketplace, including the Company’s newly developed tetrahydrocannabivarin (THC-V) and Cannabinol( CBN) delivery technologies.

Shares of the stock have been running in recent days, up as much as 60% in the past five trading sessions.

MCTC Holdings Inc (OTCMKTS:MCTC) had no reported sales in its last quarterly financial data. But it appears to be closing in on commercial-stage operational gains for shareholders and has a strong IP edge in the industry. In addition, with this agreement, the company should now be in a position to start booking topline growth in the cannabis delivery-based dispensary retail business.

 

Tilray Inc (NASDAQ:TLRY) engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. was incorporated in 2018 and is headquartered in Nanaimo, Canada.

One of its key subsidiaries is High Park, which was launched to produce and distribute world-class cannabis brands and products for the Canadian market. Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park has secured the exclusive rights to produce and distribute a broad-based portfolio of cannabis brands and products in Canada, subject to applicable laws and regulations.

Tilray Inc (NASDAQ:TLRY) just announced that it will report results for the second quarter ended June 30, 2020 on Monday, August 10, 2020 after market close. According to the release, the Company will host a conference call to discuss these results in the afternoon (at 5:00 p.m. ET) on that day.

The report should be important for the space in general because TLRY is known for being somewhat overhyped relative to its actual operations, and the market will be anxious to understand how this archetypal “pot stock bubble victim” has managed to evolve in terms of the long-term prospects for servicing its major liabilities.

TLRY shares have been moving higher over the past week overall, pushing about 3% to the upside on above average trading volume.

Tilray Inc (NASDAQ:TLRY) managed to rope in revenues totaling $52.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 126.2%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($174M against $171.4M).

 

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Categories
CBD MMJ Stocks

The Pot Stock Rebirth (GWPH, NUGS, CURLF, GRWG)

Remember a few years ago, when cannabis stocks were all the rage? It’s been a brutal bear for the pot stock crowd for the past couple years, but the signs and signals are piling up that the space is once again catching fire.

To help size up the landscape and formulate a plan, we offer up the following survey of some of the most interesting and talked about names in the space: GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH), Cannabis Strategic Ventures (OTCMKTS:NUGS), Curaleaf Holdings Inc (OTCMKTS:CURLF), and GrowGeneration Corp (NASDAQ:GRWG).

 

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) recently reported Q1 results, with sales at $120.6 million, more than triple the numbers dropped in the year-ago quarter, blowing out analyst estimates (consensus $109.4 million). The big driver, as one may have expected, was Epidiolex, an FDA approved CBD treatment for refractory childhood epilepsies, as well as for the treatment of Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms.

Net product sales for the drug totaled $116.1 million in Q1, with $106.1 million of this amount generated in the U.S.

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) bills itself as a biopharmaceutical company that engages in discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant.

The company operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development. Its lead product is Epidiolex, an FDA approved treatment of refractory childhood epilepsies, as well as for the treatment of Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms.

The company also develops and markets Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis. In addition, it develops various product candidates, which are in Phase I and II clinical development for the treatment of glioma, neonatal hypoxic-ischemic encephalopathy, adult epilepsy, and schizophrenia.

The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 4% in that timeframe. Shares of the stock have powered higher over the past month, rallying roughly 21% in that time on strong overall action.

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) generated sequential quarter-over-quarter growth rate of 22.3% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($536.9M against $117.6M).

 

Cannabis Strategic Ventures (OTCMKTS:NUGS) is nailing things right now, in terms of execution. Cometh the moment, cometh the company. That’s what seems to be the case. We are seeing dramatic sales growth, advances in product quality (as evidenced by increased pricing out the door), and expanding production capacity.

The stock is up nearly 100% since its March lows – when the whole market panicked into a major bottom and turned back higher. At this point, we are seeing bids show up around the 50-day MA, which is a positive sign.

Cannabis Strategic Ventures (OTCMKTS:NUGS) also recently announced that it is about to launch a full line of branded products. We like to see the increased pricing power. It shows strong execution from the ground up. And a robust relationship with key distribution partners. But a branded product line can push that aspect considerably further. The difference between a white label cannabis supplier and a branded products name with a popular brand is night and day.

And if the branded products name first learned how to be effective as a generic producer, a real edge is born.

That may well be where NUGS is right now: working with a macro tailwind and the good side of the execution narrative, but still ahead of the powerful news of a branded products launch.

Either way, the company’s most recent release suggests NUGS may be set to do more than twice the sales it was targeting for 2020 when it entered the year.

 

Curaleaf Holdings Inc (OTCMKTS:CURLF) just announced that retail locations in Massachusetts re-opened for adult-use purchases starting on May 25th, 2020.

“We are pleased that our three adult use dispensaries in Ware, Oxford and Provincetown are among the first of Commonwealth businesses allowed to re-open on May 25, and we appreciate the Governor and Lt. Governor’s decision,” said Patrik Jonsson, president of Curaleaf Massachusetts. “We’re very much looking forward to resuming serving our customers with the quality products they have come to rely on, and also getting our people back to work. We expect sales to be brisk as a result of pent up demand, and we are working closely with the Cannabis Control Commission and the Massachusetts Department of Health to comply with all guidelines surrounding our reopening.”

Curaleaf Holdings Inc (OTCMKTS:CURLF) promulgates itself as a company that operates as an integrated medical and wellness cannabis operator in the United States. Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

And the stock has been acting well over recent days, up something like 2% in that time. Shares of the stock have powered higher over the past month, rallying roughly 20% in that time on strong overall action.

Curaleaf Holdings Inc (OTCMKTS:CURLF) generated sales of $129.8M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 30.3% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($251M against $177.1M).

 

GrowGeneration Corp (NASDAQ:GRWG) managed to rope in revenues totaling $33M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 152%, as compared to year-ago data in comparable terms.

If there’s any concerns here from a fundamental metric perspective, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($11.4M against $17.3M, respectively).

GrowGeneration Corp (OTCMKTS:GRWG) trumpets itself as a company that, through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States.

Currently, GrowGen has 27 stores, and carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.

According to company materials, “Our mission is to own and operate GrowGeneration branded stores in all the major states in the US and Canada. Management estimates that roughly 1,000 hydroponic stores are in operation in the US. By 2025 the market is estimated to reach over $30 billion with a compound annual growth.”

If you’re long this stock, then you’re liking how it has responded in recent days as well. GRWG shares have pushed about 27% to the upside on above average trading volume in the past week since releasing Q1 financials.

 

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

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