There are three reasons to buy shares of TCNNF right now…

With the stock price taking a slight dip recently, many investors are wondering if this is the right time to buy Trulieve Cannabis stock.

The answer is yes…because compared to where the Trulieve Cannabis Inc. (OTC: TCNNF) stock price could trade in the next couple of years…you may never be able to buy shares at this lowered price ever again.

And I don’t have just one reason why buying shares now will make you long-term profits.

I have three…

Reason No. 3 to Buy Trulieve Cannabis Stock: Recreational Legalization in Florida

Even though there has been a history of hold-ups in Florida when it comes to legalization – everything from not enough voters saying “Yes” in 2014 to legalize medical cannabis to patients originally not being allowed to buy flower – dispensaries have eventually busted through the hurdles thrown in their way.

Recently, recreational legalization efforts in the Sunshine State were dealt a blow because the Florida Supreme Court deemed the Make it Legal Florida ballot initiative to legalize recreational sales for 2022 as unconstitutional.

But again, even with that setback, Florida, at some point, will legalize recreational cannabis. Projections from the cannabis analytics company, New Frontier Data, suggest that will happen sooner rather than later.

By 2025, New Frontier says that Florida will be the third-largest cannabis market in the United States, accounting for 8% of all sales.

With a $45 billion projection, that means the state would generate $3.6 billion in revenue. In comparison, it had $1 billion in sales last year.

Now, competition will heat up in the Florida market, but Trulieve has a great head start with the most dispensaries (78) in the state and currently accounts for roughly 50% of all sales.

So when it can start selling recreational cannabis, it already has the most dispensaries set up to take full advantage of the opportunity.

Reason No. 2 to Buy Trulieve Cannabis Stock: OTC to Nasdaq Listing

For U.S. companies that sell cannabis directly, they are not listed on major exchanges – like the Nasdaq or New York Stock Exchange (NYSE).

Those exchanges don’t want to take the risk of listing shares of a company that operates an illegal business under federal law.

However, we believe in the next 24 months, that is going to change.

Trulieve will be able to “jump’ from over-the-counter (OTC) to a major U.S. exchange because of several potential changes, whether that will be the SAFE Banking Act passing or cannabis no longer being a Schedule 1 drug.

When that happens, large institutions and hedge funds that had not previously owned cannabis stocks because they either didn’t want to trade stocks on the OTC or were waiting for new laws to set in will be buying as many shares as possible.

Also, listing on the Nasdaq would give the 13 million members of Robinhood the ability to buy Trulieve.

That’s why you want to own Trulieve now and add to your position on any price dips, as that flood of new traders buying the stock can send prices through the roof.

You want to be in the game ahead of them so that they are willing to pay you much more than what you paid for your original shares.

So with Trulieve being able to make even more money when Florida sells recreational cannabis and new traders gobbling up TCNNF shares when the stock starts trading on a major U.S. exchange, those are two strong reasons to buy Trulieve stock.

But there’s also a third…

Reason No. 1 to Buy Trulieve Cannabis Stock: Expansion Across the U.S.

Trulieve has proven it knows what it is doing in Florida, and now it’s expanding its business model across the country.

It purchased three dispensaries in Pennsylvania earlier this month from Anna Holdings, operating as Keystone Shops, in the Philadelphia area.

The $60 million deal included a 35,000-square-foot cultivation facility that is currently undergoing a 90,000-square-foot expansion.

And this isn’t Trulieve’s only major Pennsylvania acquisition, either.

For a combined price of $66 million, Trulieve bought PurePenn in September, a Pennsylvania-based cannabis cultivation and processing company, as well as three Pittsburgh area dispensaries from Keystone Relief Centers.

This massive cultivation and processing facility – paired with vital market access to the Philadelphia and Pittsburgh metro areas – establishes Trulieve as one of the largest vertically integrated cannabis operators in the state – a state that could go from being a medical-only state approved to a state allowed to sell recreational cannabis by the end of 2021.

Not to mention its recent feat in West Virginia, an underdog market where lawmakers had been trying to get medical cannabis business licenses issued for four years.

In West Virginia’s first round of licensing, Trulieve was awarded four dispensary licenses, and the company just bought three more from Solevo Wellness for $650,000 – a steal considering the money they could make once sales kick off.

Arcview Market Research and BDS Analytics projected that, even though it’s a smaller market, medical cannabis could be a $30 million industry.

Just like it did in Florida, Trulieve is setting itself up to get the biggest chunk of those sales, and the company will make even more money when West Virginia eventually turns on the switch to allow recreational sales.

On top of that, Trulieve also has a footprint in California, Connecticut, and Massachusetts.

There is so much positive momentum ahead that any time the stock price drops, it offers a unique buying opportunity.

To your investing success,

Danny Brody
Partner, RADD Capital


Comments

5 responses to “3 Reasons to Buy Trulieve Cannabis Stock Right Now”

  1. Hi Danny,
    How about the Gaetz/Beshears/sleaze/fraud/Florida bribe investigation? Any concern in that 2 employees of the state have admitted taking a bribe to help Trulieve with licenses and are awaiting trial while K. Rivers husband’s hearing on same issue has been postponed but is inevitable?

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