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.
That doesn’t mean all cannabis stocks will need decades before generating a return for investors, but a buy-and-hold philosophy will ensure your portfolio’s gains will be maximized.
On the one hand it has its retail operations that feature some 37 dispensaries and 20 production facilities, and on the other it operates an extensive and industry-leading wholesale business.
Based on the total number of licenses it holds, Cresco could have as many as 50 retail locations to its credit.
Its retail business also tends to concentrate on limited license markets, such as Illinois, Ohio, and Pennsylvania, where regulators limit just how many dispensaries can open or how many stores a single company can operate.
Wall Street expects that’s likely to happen as analysts forecast revenue will nearly quadruple between 2020 and 2024, growing from $476 million to $1.57 billion.
Another MSO, Green Thumb Industries , has one of the largest physical footprints in the U.S.
It believes the approach will let it build up its brands as the ones sought out by customers, enabling it to develop a loyal following.
To Green Thumb’s benefit, it offers a broad mix of cannabis products and derives a majority of its revenue from higher-margin derivative products such as vapes, edibles, oils, and infused beverages.
One of the things separating Green Thumb from Cresco is that it’s been profitable on a recurring basis for a year, though that was at least partially a result of taking fair value adjustments on equity investments.
Where Green Thumb had earnings according to generally accepted accounting principles of $15 million in 2020, it’s forecast to produce some $322 million in 2024, a 21-time increase.