Cannabis stocks are on sale right now, and this one should be at the very top of your buy list…
Late last year, I predicted that demand for legal cannabis would surge from $20 billion in 2020 to over $36 billion in 2021 – a 48% leap.
That’s far in excess of any prediction you’ll find anywhere else. But my outlook wasn’t baseless hype. It simply acknowledged the obvious and the inevitable.
First, the obvious.
United States cannabis sales consistently grew between 10% to 15% each quarter last year, ending 2020 at a pace well above 50%. And given the wide-open market that lies in front of U.S. cannabis companies, assuming a continuation of that trend didn’t feel like a stretch.
With recreational use laws spreading like wildfire, the hypergrowth that defines the U.S. cannabis market has a powerful tailwind to support such lofty leaps in revenue the next couple of years – at least.
And now that first quarter earnings results are coming in, it’s clear that my aggressive prediction hit the mark.
Cannabis sales are surging…regardless of where stock prices are currently trading.
In fact, the recent dip in cannabis stock prices is a good thing for you. It’s created a unique opportunity to pick up shares of the best companies at a discount to what they’re actually worth.
And based on what I’m seeing, there’s one emerging multistate operator (MSO) in particular that could 4X your money over the next 12 months – if you get in on it now…
Record Sales Growth
I’ll get to that pick in just a moment. But first, let me put all this growth into context.
Last week, Green Thumb Industries (OTC: GTBIF), which holds the number two spot among MSOs in terms of revenue, reported a 9.7% leap in revenue in a single quarter.
Curaleaf Holdings Inc. (OTC: CURLF), the largest MSO by revenue, reported a 13% increase.
And Trulieve Cannabis Corp. (OTC: TCNNF), the most profitable cannabis company of all – now tied with Green Thumb for second place in revenue – saw a 15% jump in sales.
Should these companies at least maintain that pace – which they will – investors can expect revenue in 2021 to increase 44% for Green Thumb, 63% for Curaleaf, and nearly 75% for Trulieve.
That’s over 60% revenue growth on average and, along with all the incredible developments driving the cannabis market forward, puts a $36 billion cannabis market for 2021 easily within reach.
Hypergrowth like this would rank as remarkable performance for any industry…and it looks monumental when you consider that these MSOs had to fight tooth and nail for every single dollar they raised in financing over the last two years.
But for the U.S. cannabis industry overall, and the top MSOs in particular, 50%-plus growth rates per year will form the low end of what is possible.
Its solid management team has expanded Ayr into key markets such as Arizona, Florida, Pennsylvania, and Massachusetts.
The company recently opened its 34th store in the Sunshine State, which now brings it to a grand total of 50 locations across the country.
And Ayr’s profitability is surging.
Which means that while cannabis stock prices are taking a bit of a breather right now, you can grab AYRWF at a significant discount to what it’s actually worth.
Remember that those who stick it out through the highs and lows are the ones who get rewarded by becoming rich.
And once you find out how high AYRWF’s stock price could climb this year, you’ll see why this is one of the best cannabis stocks you can own right now.
To check out my price target for Ayr and find out what’s in store for the company as it continues its expansion, take a look at my Deep Dive on the company below:
This Deep Dive was originally sent to our NICI Membership subscribers as part of an all-new series of stock price predictions.
Executive Director, National Institute for Cannabis Investors
8 responses to “As Cannabis Sales Surge and Stock Prices Dip, You Have a Perfect Opportunity to 4X Your Money With This Rising MSO”
May 20 2021