Global Stock Market

1 Undervalued Marijuana Inventory Traders Have to Know

With marijuana shares experiencing an unprecedented bull run currently, it is not straightforward to search out one which’s undervalued — in truth, we needed to enterprise all the best way all the way down to Florida find one.

Veteran Motley Idiot contributor Eric Volkman and Healthcare and Hashish Bureau Chief Corinne Jurney Cardina speak about that inventory and why it is so engaging on this Motley Idiot Stay clip recorded on Feb. 5, 2021.


Corinne Cardina: Eric, what’s one marijuana inventory that you simply suppose is wildly undervalued proper now?

Eric Volkman: Properly, there are not any pot shares, I imagine, which might be wildly undervalued.

Cardina: A little bit bit undervalued.

Volkman: Barely, modestly undervalued.

Okay, one undervalued play I might say proper now, folks learn about this inventory, however different marijuana shares have gotten extra press than these guys. They seem to be a inventory referred to as Trulieve Hashish (OTC:TCNNF), they’re primarily based in Florida. Their technique is principally to be pretty dominant of their native market. Their market share there’s nearly 50%, and they’re, far and away, the most important retailer there.

They function in Florida, and naturally, Florida has, in all probability as lots of people know,  has solely legalized medical marijuana. So, as a result of medical marijuana is, by nature, a really restricted market and type of a fussy market, you possibly can solely promote to those that have permission to make use of medical marijuana, Trulieve has performed very nicely.

It is an enormous market, and to not maintain banging the desk about this, however as soon as Florida goes authorized with leisure, like I might think about it will, I can not see any purpose why not, Trulieve is true there. Its community of dispensaries is intensive, it is all around the state. They’re actually going to profit. They know Florida, they know that market chilly.

The one draw back about Trulieve is, in comparison with one thing like we simply talked about some time in the past, Cresco Labs in Illinois, they do not have a lot of a nationwide footprint in any respect, or hardly any.

They’ve a presence in, principally, 4 different states, nevertheless it’s very gentle. They’ve one dispensary in California, one dispensary in Connecticut. They have been not too long ago awarded three dispensary permits in West Virginia, however once more, that is not a excessive quantity. It is basically a play on one market.

However the truth that they’ve dipped into these different markets reveals that they are not shy to take action, and that they are being cautious, they usually’re conserving their sources, they’re conserving their capital.

On prime of the whole lot, Trulieve is that the majority superb of all issues a worthwhile marijuana firm. They have been doing nicely. Do now we have the numbers? Let me see. Once more, let me examine my cheat sheet right here. The place’s Trulieve?

Cardina: I’ve their diluted EPS, trailing 12 months as $0.59, so it is on the plus facet. There you go.

Volkman: Yeah, precisely. They don’t seem to be dropping cash and on prime of that, they’re getting larger. They opened one more Florida dispensary, I feel on the finish of final month.

I even have the numbers right here. Of their most not too long ago reported quarter, they booked income of just about 182 million, sorry, that is Canadian {dollars}, 182 million Canadian, internet revenue CA$6.3 million. Not large numbers, however they’re worthwhile.

So Trulieve can be my choose for, if not essentially tremendous undervalued, a considerably undervalued, underappreciated choose.

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