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.
A lot of the air has been let out of the marijuana market’s balloon since the heady, early days of the Canadian green rush.
An investor who put $1,000 into Trulieve’s reverse merger in 2018 would be doing quite well today, especially in comparison with other pot stocks available at the time.
Trulieve is the largest multistate operator in Florida, with 105 operating marijuana dispensaries.
Having achieved economies of scale in one state, Trulieve is now using that dominant position to replicate its growth trajectory in other states and has a presence in 11 states.
What makes Trulieve different is that it’s a profitable MSO and has been operating in the black for 14 consecutive quarters.
In the second quarter, Trulieve had combined revenue of $318 million and adjusted earnings before interest, taxes, depreciation, and amortization of $123 million, the most for any U.S.
It’s easy to see why Trulieve is doing so well.
It will next be moving into nearby Georgia, where it was just granted one of two Class 1 productions licenses for a 100,000-square-foot production facility.
By operating in states that limit the number of licenses available to be issued, Trulieve’s competition will be limited, though rivals such as Curaleaf, which lost out to Trulieve, are protesting the awards, and that may delay expansion.
Trulieve does have some headwinds that have held it back from reaching its full potential, most notably the conviction on fraud and bribery charges of the MSO’s founder’s husband.
Despite that, Trulieve has still been a winning stock for investors.
That’s a compounded annual growth rate of over 58%, but with Wall Street still having high hopes for the MSO and setting a price target of $79 per share on Trulieve’s stock over the next year, that suggests there is still 174% upside to its stock.