Canopy Growth and Trulieve Cannabis (TCNNF) Are Expecting a Record-Breaking Quarter
German marijuana stock, Canopy Growth (CGC), is reportedly expecting a record-breaking quarter, while Trulieve Cannabis (TCNNF) is currently in bargain-basement territory. Regardless of your personal investment preferences, here are some important things to keep in mind before buying marijuana stock. First, research the management team, competitive position, and growth strategy of the marijuana company. Also, check the company’s financial position to make sure it is stable enough to continue operations. If it is not, it may need to raise additional funds via a stock offering, reducing the value of existing shares. Furthermore, borrowing may put a strain on the business.
German marijuana stock expected to announce record-breaking quarter
A recent report published by Marijuana Business Daily says that German marijuana stock, GW Pharmaceuticals, is on track to report a record-breaking quarter. The country is currently the largest federally regulated medical marijuana market outside of North America, but there is still a long way to go before it is able to support a full-fledged domestic market. A recent survey of pharmacies revealed that more flower varieties are available in Germany than at any other time in history. While it is still a relatively small market, the growth of the medical marijuana sector is an important revenue driver for producers with a global perspective.
German marijuana stocks are rising fast as the market grows more familiar with the product. Many investors have been paying close attention to Tilray, which recently reported a record-breaking quarter, with net revenues up 43 percent. Tilray is the largest player in the medical and recreational cannabis markets in Canada. While it does not sell cannabis in the US, it does make money from beer sales in that country. Therefore, if investors want to take a risk on the German marijuana stock, they should consider investing in this company’s shares.
This company is also expanding internationally, and the increased sales in the United States have boosted its sales. Its revenue grew by 53% in Canada and 346% in the U.S. It has also been expanding its online presence and internationally. The company expects to continue growing its sales in the coming years due to its unique discount club model. The company will use its Amsterdam warehouse to fulfill orders from German consumers.
Canopy Growth (CGC) reported mixed fourth-quarter results
Cannabis producers Canopy Growth and Aurora Cannabis (Aurora) reported mixed fourth-quarter results, but the company continues to build momentum in Canada. In Q4 2021, Canopy Growth maintained its #1 position in the recreational cannabis market with 19% of the market share. The company also exited the year as the number one brand in Canada for flower, with six of the top 10 SKUs under its belt. Premium flower brands have continued to perform well, capturing 10.9% of the market during Q4 2021. Additionally, Canopy Growth launched its first Quebec-exclusive brand, Vert, with multiple strains supporting the new product.
Canopy Growth’s MD&A should be read alongside its audited consolidated financial statements, which have been prepared in accordance with International Financial Reporting Standards. The company’s audited consolidated financial statements cover the accounts of Canopy Growth and its subsidiaries. The company’s audit committee has reviewed and approved the audited annual consolidated financial statements and the company’s MD&A.
Canopy grew revenue of $148 million in Q4 2021, up 37% from the same period a year earlier. The increase was driven primarily by growth in the Canadian cannabis business and its other consumer products businesses. Revenues from other cannabis products increased by 39% and total net cannabis sales were $101 million and $379 million, respectively. This increase was the highest in Canopy’s history.
Trulieve Cannabis (TCNNF) has 15 consecutive quarters of profitability
The cannabis industry has been flooded with capital, but many companies overextended themselves and overspent like drunken sailors. Now, capital is flowing in only a trickle. But Trulieve Cannabis is leading the pack in profitability, and its recent acquisition of Harvest Health gives it a big retail footprint. Its consolidated revenue is now approaching that of Curaleaf, which had the same revenue in Q3-2021.
The company’s management says its CEO, Robert Fagan, is largely responsible for its success. He also credits the help of several construction companies, including Burnette Construction, which was founded by J.T. Burnette and owns a minority stake in the company. But the connection between Burnette and Trulieve has long been downplayed by the company. In fact, the company has sued Grizzly Research for reporting this connection.
The company’s third-quarter earnings report on Nov. 17 showed that revenue grew 64% year-over-year to $224 million. Adjusted EBITDA climbed 7% to $19 million. This quarter, the company closed its acquisition of Harvest and met expansion goals in several markets. As a result, the company’s adjusted EBITDA percentage could fall a bit, but it is still profitable.
The company’s third-quarter financial results were also impressive. Revenue for the third quarter jumped to $224.1 million, up 64% from the same period last year. Furthermore, its management has access to political influence in Tallahassee. And Nick Iarossi, a powerful lobbyist for cannabis, has connections in Washington and is a trusted advisor to the company.
Green Thumb Industries (GTI) is in bargain-basement territory
Shares of Green Thumb Industries (GTI) are in bargain-basement territory after the company reported record revenue during its second quarter. While it’s still a young company, it has grown to sell cannabis products across 14 states, including Washington, Colorado, and Oregon. It also generates revenue through 62 retail stores. The company reports adjusted EBITDA of $79.3 million.
Innovative Industrial Properties (IIP)
Innovative Industrial Properties, Inc. (IIP) is a real estate investment trust focused on the cannabis industry. The company owns and operates 107 properties in 19 states where marijuana for medical purposes is legal. As of April, the company has committed $1.9 billion in capital improvements and received $227.1 million in tenant payments. In addition, the company has been acquiring properties in Massachusetts and Pennsylvania and expects to add 2.7 million square feet to its portfolio by 2022.
The company has previously beaten estimates for the first, second, and third quarters of its fiscal year 2021. Investors are likely to be satisfied with the latest results, which could help its stock price rebound. However, investors should be aware that the market has been hit hard by the recent stock price decline, which has impacted growth stocks. This may be the case with Innovative Industrial Properties (IIP) stock.
The company has acquired 24 marijuana properties in December 2021. The press release indicated that the properties were a mix of dispensaries and processing facilities. However, total square footage suggests that the majority of these properties are dispensaries, as they have a smaller footprint than processing facilities. Analysts are likely to ask management to clarify the type of properties that IIP currently has. The company is expected to announce a record-breaking quarter on Thursday.
Scotts Miracle-Gro Co. (SMG) is in bargain-basement territory
If you’re looking for an attractive stock to buy this year, consider investing in Scotts Miracle-Gro. It’s one of the world’s leading marketers of garden and lawn care products. However, the company is facing a tough comparison from its dazzling results last year. Consumer sentiment has turned negative and the stock has been over-punished, but that doesn’t mean that you should ignore it. The company’s management is restructuring the company, and if that doesn’t turn out to be a good thing, you might be able to buy the stock at a discount.
Although recent price weakness has pushed its dividend yield to below 2%, it still comes with a low 31% payout ratio and 12 years of dividend growth. In addition to dividends, SMG is a total return play, as the company has spent $129M in share repurchases in the last five quarters. While it may not look like much at the current price, investors should consider SMG as a total return story.