Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio.
Enterprising investors might want to take a different tack, looking beyond the big names for the best growth opportunities.
Eric Volkman : Anyone even casually familiar with marijuana stocks has probably at least heard of the top multi-state operators like Green Thumb Industries, Curaleaf, or Cresco Labs.
In contrast to some of its peers, MariMed isn’t actively building out into a big set of markets.
Medical marijuana sale and use is permitted in the mid-Atlantic state, and the political trajectory seems to be heading toward recreational legalization perhaps as soon as 2022.
MariMed’s modest presence and stealthy-growth approach limits its exposure and saves expenses.
Like numerous peers, MariMed also has a product portfolio, but true to its nature this is fairly small with only four “house brands.” Still, the company has made encouraging inroads with these goods, particularly its colorful Betty’s Eddies line of comestibles.
For MariMed, being relatively cautious yet active in high-growth locations has resulted in that rarest of all things for marijuana companies — a string of bottom-line profits.
MariMed might not be famous compared to its rivals, but that’s to our advantage as investors — it’s cheap on both a raw share price basis and on its valuations.
That’s where Village Farms International comes in, supplying your local supermarket with inexpensive yet juicy tomatoes from its hundreds of acres of indoor produce cultivation space.
For the last four quarters in a row, Pure Sunfarms has grown its revenue from branded products by more than 20% sequentially in the face of hot demand in Canada.
The acquisition should lead to around $30 million in new annual sales for Village Farms. More importantly, it now has the supply and distribution infrastructure it needs to start to penetrate a segment of the U.S.
In sum, it’s an exciting time to be a shareholder — and it might even be a favorable time to buy the stock.
Rich Duprey : Because the cannabis industry’s potential is so great it’s possible the tide will rise enough that all boats will be lifted.
More than likely, there will be winners and losers just as in every industry, but picking those companies that will come out on top will be complicated.
Of the 60 retail locations GrowGeneration operates, 22 are located in California and almost half of those are in the southern half of the state.
The rest of its locations are spread out over 10 other states including Colorado, Michigan, and Maine.
That indicates the hydroponics and gardening supplies retailer is getting a lot of repeat business, and more importantly, it’s profitable business.
It had four locations that it expected to be operational by the second quarter, early third quarter at the latest, but runaway pricing and supply chain issues have held it back.
Once port congestion and other snags are sorted out, goods will flow once more and the shortages will resolve themselves.
GrowGeneration’s multiples seem exorbitant because it’s suddenly flush with profits, but analysts do expect it to grow earnings at a compounded 20% rate annually for the next few years.