CURLF – Tech like growth trading at a fraction of the typical tech valuation. Institutions still not yet allowed to buy in! 👀💨🚀
With laws changing in the US, there are a ton of eyes on the weed industry. I have been researching the sector since 2016 when CGC was trading at $2 and the Canadian weed stocks were all the rage.
It seems to me that there are still a lot of people interested in these shit fuck weed stocks like many of the Canadian companies and even some garbage companies in the US that are basically worthless. (Not gonna mention any names in particular).
I’m here to shed some light on the space, and bring a little more attention to the companies who are actually making money and leading the sector. From where I stand, Curaleaf is king and I think the next couple years are really going to show a difference between them and all the others.
Total revenue or leading US cannabis companies –
Curaleaf: $767.1 M GTI: $556.6 M Truelive: $521.5 M Cresco: $476.3 Verano: $354.8
Those are the top 5, if you are investing you’re money into anyone else, they probably aren’t worth a damn to be honest.
Curaleaf is already doing more in revenue than any other company. Not only do they have the largest footprint in the US, they also recently acquired EMMAC, which is the largest operator in all of Europe. This now provides them another giant market to launch their products into.
Now let’s take a look at the numbers Curaleaf is putting up and how fast they are actually growing.
Total revenues grew from $40.7 mil in Q1 of 2020 to $260.3 mil in Q1 2021. Thats 170%!
AEBITA grew from -$2.8 mil in Q1 2020 to $62.6 mil in Q1 2021, or a growth rate of 213%!!
The numbers speak for themselves, but allow me to shed a little more light on what’s really going on here…
These numbers are great, but they don’t include the recreation market in the northeast, which is likely going to be one of the largest markets in the world. Curaleaf has the largest market share in states like NJ, NY, and CT, which are all about to go recreational in the next few months to a year. That alone should provide explosive growth on top of what is happening in the rest of the country and Europe!
What’s even more exciting is that Curaleaf is growing earnings at an incredible pace while still spending money to grow its footprint and capture market share around the globe. Not only that but they are also paying a substantial amount of tax due to the federal illegality of the product they sell.
This will change when laws change and 280E gets removed. For those of you who don’t know what 280E is, it’s a section of the tax code that prevents businesses from deducting expenses incurred in the production, distribution, and sale of illegal products such as marijuana.
Now let’s have a look at the US weed market projections as a whole:
The legal weed market is expected to grow from $17.5 billion in 2020 to $37.7 billion in 2025. Thats a CAGR of 19% over the next 5 years! 😳
How’s that for a multi year secular growth trend? Talk about tailwinds?! 🚀
Another aspect of Curaleaf’s business that sets them apart from competitors is the Select brand and wholesale distribution network. Not only is Curaleaf selling their products out of Curaleaf branded stores, but Select products are now available in thousands of other dispensaries as well. 💰
In case that’s not enough to YOLO you’re life savings into this generational opportunity, here’s one more tidbit of information that’ll make you happy to be a retail investor:
INSTITUTIONS STILL CAN’T BUY SHARES!! This is probably the most exciting part of the whole situation. Us apes are able to load the boat before big money starts flowing in for once. When laws change and the MSO’s uplist is when the party gets started in weed. 🤑
So stop wasting your money/opportunity on Canadian companies and small time US wannabes and start loading the true market leaders.
Curaleaf is king! 👑
Curaleaf investor presentation – https://filecache.investorroom.com/mr5ir_curaleaf/403/download/Curaleaf.Investor.Deck..pdf
280E tax code – https://www.law.cornell.edu/uscode/text/26/280E
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June 23, 2021 at 10:31AM