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But keep that aside for a moment, and you will see companies with strong financials and high growth prospects that can bring in some bountiful returns over the long haul.
Things have been looking very promising for this multi-state cannabis operator.
Increased traffic from 73 open and operating retail stores in 15 states resulted in another robust quarter and year-end for this cannabis grower.
According to management, its consumer packaged and retail business in Illinois and Pennsylvania strengthened in the year contributing to the overall performance.
The fourth quarter marked Green Thumb’s sixth consecutive quarter of positive net income under generally accepted accounting principles , which came in at $22.8 million, a modest 1.5% year-over-year increase.
Toward the end of 2021, Green Thumb acquired Minnesota-based LeafLine Industries, which gave the company access to one cultivation facility and five open retail stores in the state.
With quite an impressive number of additional licenses, it will be interesting to see how many stores the company opens this year.
If Green Thumb decides to use its additional licenses this year, it could easily give a tough fight to its peers like Trulieve Cannabis, which boasts 161 dispensaries nationwide.
Why is it important? Consistent positive free cash flow from operations allows a company to settle its debts and utilize the money for the future.
Falling share prices of marijuana stocks over the last few months shouldn’t be a huge deterrent for investors with a long-term horizon.
Even Wall Street has high hopes from this pot stock — which is why analysts see an upside of 104% for the next 12 months.