The next big contender for the cannabis crown is…
“Rugby is a good occasion for keeping thirty bullies far from the center of the city.” – Oscar Wilde
My team, the Chicago Lions, was trailing 21 to 19. Mike from Pittsburg, our openside flanker, was on the ground eight yards ahead. His head, torso, and legs curled around the ball as a shield as his tackler scrambled to get up next to him.
Mike lay about 12 yards shy of our try line – a touchdown in rugby-speak. Another five points were within reach.
Two hulking locks from the opposing team bore down full speed on his position.
The time for risk was upon us.
I love this part of the game. As I sped to Mike’s spot, I grabbed two teammates along the way by the backs of their shirts, added my momentum to theirs, and converged with the two hulks in sublime violence over Mike’s body.
The right mix of mass and velocity always wins.
Next thing you know, the ball and Mike laid between our feet. Taking the risk kept us on the offensive.
Meanwhile, the rest of our assets got into position across the width of the pitch. Our strategy was to spread the defense across the field, creating gaps and more opportunities to score.
Out came the ball. And a few lateral passes later, our outside center busted through two defenders to touch the ball down across the try line to score.
Another Saturday well spent keeping 30 bullies far from the center of the city. And the beers would taste all that much better with the win.
Now, the Next Big Contender for the Cannabis Crown – a company I know well, Jushi Holdings Inc. (OTC: JUSHF) – has worked hard over the last 18 months to set up its assets on the cannabis pitch. Jushi has taken risks, invested in assets, and strategically aligned itself within the hyper-competitive cannabis space.
And now is the time for those investments to start paying off big for shareholders…
The Next Big Contender for the Cannabis Crown
Jushi came to the “Cannabis Pitch” with $220 million. The founders put in $45 million of that capital, which means the team behind Jushi is “all in” on this company’s success.
They went about hiring staff, getting licenses, acquiring cultivation and processing facilities, and setting up dispensaries.
The focus was limited-license markets, whether entire states like Virginia, Ohio, Pennsylvania, Illinois, and Nevada, or jurisdictions in California that limit licenses, like Santa Barbara.
Pennsylvania comprises its most significant footprint. The company has 8 dispensaries open, with 15 total dispensaries planned. And its license in the very wealthy region of Northern Virginia is the only license the state will permit for years, giving Jushi a virtual monopoly on that valuable territory.
All this investment created a lot of expenses upfront. Not only did they invest in infrastructure, but paying for a nine-person management team and 330 staff members isn’t cheap. That’s the risk they took to be in a strong competitive position.
For a few months, a lot of money went out the door without much coming in. In their first full quarter of operations, they made only $6 million in sales.
Over the next two quarters, however, sales went from $6 million to $9 million and then $15 million. Nine months out, and the company is on pace to deliver $24 million in its fourth quarter of operations. That’s nearly a $100 million annual revenue pace. And this is just its first year.
So, the risk and effort are beginning to pay off big time. Jushi’s assets are driving sales higher every month. The right people are in place to continue this rapid pace of growth.
And based on its stock’s performance over the last couple of months, Wall Street must be betting on Jushi to be a cannabis winner.
From $2.50 to $25 by This Time Next Year
NICI Membership subscribers had the opportunity to first buy into Jushi on July 24 at $1.52. It’s now $2.48, up 63% in 10 weeks.
If you missed out on those gains, that’s okay. That’s just an early taste of what to expect.
But if you want to make sure that you are first in line to receive my trade recommendations, you need to see this.
To understand the full profit potential ahead for Jushi, just take a look at my Deep Dive video on this company. I expect revenues to reach five times the current price over the next two years, easily. And those revenues offset more of the expenses already built into Jushi’s business model every month.
Positive cash flow is just around the corner for Jushi, and as profits climb along with sales, shares could leap another 15-to-20-times from current levels.
Wall Street is forward-looking. It recognizes the quality of management, considers the growth, and sees all the value this company will create for shareholders from having an excellent position in top markets.
With all these powerful tailwinds, I suspect Wall Street will start pricing all these factors into the stock price over the next few months. And that could turn Jushi’s stock from its current $2.48 level to $25 by this time next year.
That makes Jushi a great buy at current levels. It has a commanding position on the Cannabis Pitch.
All you have to do is sit back and watch Jushi rack up the wealth-boosting touchdowns.
Executive Director, National Institute for Cannabis Investors
10 responses to “Cash in on Jushi’s Commanding Position on the Cannabis Pitch”
October 06 2020