You’re reading a copy of this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015.
We cited several factors that led us to believe the rally that was underway would be sustainable, including additional states legalizing, which has been the case, and improvements in key markets that had already legalized.
We explained near the end of Q1 why stocks had pulled back, and now, 2 1/2 months later, the index has consolidated slightly lower.
Ultimately, the prices will track the fundamentals, and strong growth is likely baked in for years to come as recently legal markets, like Arizona, Illinois and Michigan, continue to ramp up and new markets launch adult-use sales, like New Jersey, New York and Virginia.
Beyond overall market growth, we continue to view M&A as an additional growth driver for many MSOs, with the highly fragmented industry ripe for consolidation.
For subscribers at premium subscription service 420 Investor, we assess not only the fundamentals, but also valuations, technicals and sentiment, which we refer to as the four legs of the chair.
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