Cresco, Trulieve, Curaleaf, and Green Thumb produced stellar revenues in Q3. Here’s your earnings roundup…
Right on time, your pot stocks are back on the up-and-up, ending a summer-long downtrend and proving what my team and I have been telling you all along…
Cannabis investing is a roller coaster ride, and the temporary dip you just weathered did not accurately reflect all of the money that your favorite United States multistate operators (MSOs) continue to rake in each quarter.
Just as I expected, the “Big Four” are reporting double and triple-digit increases in revenue and profitability for the third quarter.
Impressive new earnings reports, paired with a Republican-backed federal legalization bill that no one saw coming, were the exact catalysts that your pot stocks needed to bounce back.
Just look at the stock performances of the “Big Four” in the last month:
Source: Google Finance
And while the other two members of the “Big Four,” Green Thumb Industries (OTC: GTIBF) and Curaleaf Holdings Inc. (OTC: CURLF), didn’t rise as substantially – they swiftly recovered from their lackluster positions earlier this month and are headed in the right direction.
I told you about my high expectations for the cannabis market in 2022 in my newest episode of Office Hours, but you don’t need to take my word for it.
In this special edition of NICI Snippets, these third-quarter earnings from the “Big Four” MSOs speak for themselves.
Here’s all the proof you need that your pot stocks are back on the right track to make you more money than ever in the new year…
Trulieve Makes History With Record-Breaking M&A Deal
If the cannabis market’s performance in Q3 2021 was made into a movie, Trulieve would get the starring role after making history with its $2.1 billion acquisition of Harvest Health and Recreation. (Click here to read all about it.)
It also debuted its flagship store in West Virginia, the first-ever medical cannabis dispensary to open its doors in the state.
With Trulieve’s new assets from Harvest, plus the additional dispensaries that it opened this quarter, there are now 155 Trulieve dispensaries operating nationwide – more than any other multistate operator in the industry.
Cresco Boasts Double-Digit Increase in Profitability
Cresco Labs enjoyed another stellar quarter with a 24% increase in profitability (adjusted EBIDTA).
This increase was a result of infrastructure investments beginning to pay off, according to the company’s co-founder and CEO Charles Bachtell.
He said, “with many more growth initiatives up ahead, 2022 is set to be another record year, and we couldn’t be more excited for what’s to come as we continue driving strategic breadth, depth and execution.”
Green Thumb Industries Secures Key License in Virginia
Green Thumb’s Q3 highlight is undoubtedly its acquisition deal closing with Dharma Pharmaceuticals, which holds one of only five vertically-integrated medical cannabis licenses in Virginia.
This means that Green Thumb will enjoy significant market exclusivity in Virginia before its recreational cannabis sales kickoff. And when they do, Green Thumb will have already established a footprint, following, and brand credibility among consumers – making it fully prepared to collect the lion’s share of the profits.
Green Thumb’s stock, GTIBF, also experienced the largest price increase overall as a result of its earnings report. On November 10, GTIBF shares were trading for around $21 and jumped to $27 on November 12, just after its earnings were released, for more than a 25% gain.
Curaleaf Sets New Revenue Record
Of the MSOs in the “Big Four,” Curaleaf experienced the least spectacular quarter. Even so, Curaleaf produced optimistic revenues, and the company is still on track to hit $1.2 billion by the end of the year.
This includes a new quarterly revenue record of $317 million, and while it experienced a slip in profitability (adjusted EBITDA), CEO Joseph Bayern said the company “continued to successfully execute [their] plan for long-term growth in the third quarter.”
Curaleaf remains the largest revenue-generator in the country, and I have no doubt that Curaleaf is still one of the best pot stocks to own.
To your investing success,
Executive Director, National Institute for Cannabis Investors
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3 responses to “NICI Snippets: Stellar Revenues and Renewed Hopes of Federal Legalization Have Your Pot Stocks on the Rebound”
November 17 2021