As cannabis revenues surge, the winners separate themselves from the wannabees…

Over the last three years, investors have plowed billions of dollars into the cannabis sector.

That money has been used to build out critical infrastructures like greenhouses, extraction capacity, and testing facilities.

It has paid for dispensaries, warehouses, and software to track the entire cannabis supply chain from seed to sale…

Covered the cost of high-tech equipment like lighting, hydroponic systems, and air filtration…

And attracted waves of professionals looking to build their fortunes in one of the most lucrative industries to emerge in the last 40 years.

And now, during one of the most turbulent years that any of us can remember, those investments are starting to pay off.

Because cannabis sales are absolutely surging.

Across all publicly traded cannabis companies, revenues for the latest quarter came in at about $2.7 billion – a 60% increase in quarterly revenues in just nine months, which is a growth rate that you’d be hard-pressed to find in any other industry.

While I’d peg the cannabis industry growth at 60% for the first nine months of 2020, that’s just an average.

Take the top twenty publicly traded United States companies, and revenues have surged 87% higher so far this year.

Even among the top sellers in the industry, stark differences emerge among which companies can deliver and which have proven they can’t compete.

Trulieve Cannabis Corp. (OTC: TCNNF), a company that has delivered profits to shareholders since day one, has seen sales surge 93% to $136 million in a single quarter.

Curaleaf Holdings Inc. (OTC: CURLF), now the biggest cannabis company in the world, generated $182.4 million in revenues during the third quarter, thanks to its Grassroots acquisition closing in July. That’s nearly three times more cannabis sold compared to the final quarter of 2019.

But the title of the largest year-to-date surge is Cresco Labs Inc. (OTC: CRLBF), a strong multistate operator (MSO) with a heavy focus on the Illinois market that increased revenues 339% to $153.3 million last quarter.

These numbers are impressive.

But we’re at a point where the winners are separating themselves from the wannabes – and you don’t want to get stuck holding onto the latter. Because those wannabes are either always going to be playing catch up, or they’re going to go out of business.

So, let me show you what a winner and a wannabe look like…

The Secret to Picking Your Spots in Cannabis

It may take a little longer to get to the top, but not rushing into things will pay off for companies with a strategic approach to building a business.

Some, like Jushi Holdings Inc. (OTC: JUSHF), learned from the mistakes of other cannabis companies and set their chess pieces carefully. And now, the sales are starting to roll in.

[COMING SOON] Over the next couple of weeks, I’ll be talking to one of Jushi’s founders about the progress the company is making and what we can expect over the coming year. NICI Membership subscribers will have a front-row seat to this conversation, so if you haven’t already, you can find out how to join us right here.

Just today, Jushi reported third quarter revenues of nearly $25 million – a strong 67% increase over last quarter. So, while JUSHF may not be the most well-known cannabis stock, its performance speaks for itself, having more than doubled since I first recommended it to NICI Membership back in July.


Source: National Institute for Cannabis Investors
 

But there are plenty of “toxic” stocks out there, too, with the companies that just can’t keep up. Take MedMen Enterprises Inc. (OTC: MMNFF).

MedMen may sit among the top 32 publicly-traded cannabis companies by revenue, but it’s also one of the most fraught investments you can make right now.

To those that knew where to look, it was clear that this company was built to fail. And while it was disposing of assets and scrambling to stay afloat, its cannabis sales collapsed 31% to only $27.4 million during a year when the top players saw so much progress.

As a result, the MMNFF stock price has tanked over the course of this year.


Source: National Institute for Cannabis Investors
 

As we head into another year full of uncertainties, it’s more important than ever for you to be able to sort through the winning and losing stocks – the Jushi’s from the MedMen’s.

And today, my colleague Shah Gilani is giving you an incredible head start with his complete list of the best (and worst) stocks for 2021 – including 31 stocks you should consider buying right now and 19 popular yet “toxic” stocks that you should consider dropping immediately.

Click here now to tune in for this special free program.

It might just be the perfect way to start off the holiday season!

And to all of you wonderful subscribers out there, thank you, and have a Happy Thanksgiving.

Take care,


Don Yocham
Executive Director, National Institute for Cannabis Investors


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