Hey There Income Hunters,
Big news …
I’ve identified the company best positioned to be the dominant producer and dispenser of both medicinal and recreational cannabis in the U.S.
I would be, too!
This company’s grip on the market is tightening rapidly — and its business strategy has these would-be cannabis kings perfectly situated in highly-populated states that restrict the number of licenses distributed.
Who Is It?
Today we’re talking about Curaleaf Holdings (Ticker: CURLF).
CURLF has been a Pac-Man, swallowing up dispensaries all over the world — and it’s starting to add up. The company …
Has staked a claim in 23 states with 95 local dispensaries.
Owns 22 cultivation sites and 30 processing sites.
Serves 220,000 registered patients.
Is actively selling in 1150 wholesale dispensaries that it doesn’t own.
Massachusetts-based CURLF is projected to grow revenues by almost 70% for the next three years. That number is based, in part, on overall growth projects for the industry, which I think are on the low side.
The strategy they’ve employed has been bold. They took a leap of faith that regulatory progress in the cannabis area would go their way … and they will soon be rewarded.
At $14 dollars, this stock is a steal, and investors are getting an incredible chance to be in before they make the leap to an exchange listing.
Curaleaf’s strategy is bold and they have other multi-state operators playing catchup.
CURLF’s Let’s-Make-a-Deal Offensive
After some early deals, Curaleaf bagged the big prize last year with the Grassroots acquisition that expanded Curaleaf’s presence from 18 to 23 states.
The combined company now has affiliated operations spanning more than 135 dispensary licenses and 88 operational dispensary locations.
This massive proliferation of dispensaries will give Curaleaf a footprint in the world’s largest market that will be hard to beat.
And based on the expectations for the size of the market and Curaleaf’s reach, check out the forecasted rise in earnings:
The Cannabis Arms Race Is On
There are a handful of operators playing catchup including Cresco Labs Inc. (Ticker: CRLBF) and Green Thumb Industries Inc. (Ticker: GTBIF). However, as you can see from the chart below, they better get moving…
Have you noticed that this industry is so new that most operators are still trading on over-the-counter markets (OTC)?
This is great for retail traders because institutions have not even had a chance to get in yet.
Stock prices are discounted heavily for two reasons. First, the pending regulatory issues. Second, the fact that the opportunity is somewhat under-the-radar since the leading companies are not on national exchanges.
Trading at More Than 41% Discount to Fair Price
Check out Curaleaf’s #PowerIncome valuation. It’s very rare to find such a powerful growth story that can deliver so quickly.
This opportunity was made possible because of the delay in getting states to decriminalize.
But now things are moving at warp speed, in large part because Colorado (and others) have proven how successful the business model can be for states and as a job creator.
A Market Ready to Explode
Notice above that the 20-day and 50-day moving averages are converging and volume is decreasing. It’s like coiling a spring tighter and tighter until it releases a ton of energy.
This is how I foresee the months ahead:
- Federal decriminalization is announced and CRLF makes a new all-time high and doubles in price by the end of the year.
- CRLF uplists on to a major exchange and institutional money flows into the cannabis market — which becomes one of the hottest asset classes for 2022.
Bring It Home
There are so many benefits to the cannabis industry flourishing nationally — mostly related to health and competition it brings to Big Pharma.
Oh, and all the jobs it will create.
And, of course, all the money #IncomeHunters will make.
This is the good stuff, folks: recognizing an opportunity and getting in early, which makes trading the core position along the way much easier.
Live and Trade With Passion My Friends