Curaleaf Holdings Inc (CURA-CSE)

Getting more liberalization of cannabis laws state by state in US. Good for multi-state operators like this one. Well positioned. Elephant in room is federal tax laws, but tax relief won't be for a while.

Allan Tong’s Discover Picks Despite inflation, Curaleaf’s Q2 was rosy with revenue growing 8% to $338 million and adjusted EBITDA rising 2.2% to 25.6% following -1.5% in Q1. Also, management lowered 2022 guidance by cutting capital spending by $25 million to $125 million. Caveats: There’s a lot of competition in any of these territories, so establishing a presence in all corners of the U.S. is crucial. Also, the path to legalization will be unpredictable, given the vagaries of American politics. You can buy Curaleaf now, but be patient. The ride up could take time, but it could soar into hyperspace any moment, too. Curaleaf boasts 10 buys and one hold at an average price target of $12.14, nearly 50% higher. Buy. Read 3 Cannabis Stocks to go Higher for our full analysis.

Cannabis stocks sold off in the U.S. with many companies burning through cash. Curaleaf should continue to be a leader with cash on the balance sheet and generating cash. It is still building its business. There are challenges in the Cannabis market in the U.S. at the moment. Waiting for more legalization legislation.

MJ-N down this week He has been long in cannabis. It's been a tough week. Most of this ETF is invested in Canadian stocks. Canopy this week just announced it would issue more shares, which will highly dilute shares. Canopy has been eroding capital quickly. A lot of consolidation needs to happen. The top 3-4 Canadian players are losing market share. Look to U.S. names, instead, where valuations are interesting. Names like Curaleaf are trading at low May 2020 valuations.

A bit of a lottery ticket. Good job expanding in US, strong revenue growth, fairly good cash balance, growing organically. US regulatory environment has not improved. US investment firms won't hold cannabis while still illegal. Tide's gone out on the market. Future is promising, but he can't say when. Will be a leader long term. Investors must decide whether to hold or use tax-loss selling.

(A Top Pick May 04/21, Down 59%) Derating of secular growth stocks due to rising interest rates. Doing all the right things. Delayed US legislative reform. A victim of the environment. Will be a dominant player in years to come.

This was dragged down with the Cannabis sector and delays in U.S. Cannabis legislation. Has good governance and should be one of the winners in this space. Long term growth is good but not so much short term. Chairman and founder owns $800 million in stock. He owns personally but not for clients.

US multi-state operator (MSO). Most stocks peaked a year ago, and have been in decline since. Continues to grow. Regulatory and structural issues have caused selling pressure. At some point, valuations will catch up. Leader, biggest MSO. The Cadillac.

(A Top Pick Jan 07/21, Down 40%) Still has confidence in the name. An emerging growth sector with ups and downs. Company strategy plus industry dynamics will make it a long-term winner. Victim of sentiment and legislative delays. Heightened competition. Still buying.

One of the leaders. Revenue and EBITDA numbers in the sector have been significant; valuations are attractive, and they're growing. Strategy of both building and buying. After tax loss selling, and into next year, more investors should be looking at it. Catalyst from US legislators would be icing on the cake.

Emerging growth industry that will be very big in time. Will be one of the dominant players. Likes the pullback, along with the valuation. Whole sector has pulled back on sentiment, legislative delays, heightened competition in Florida. When fundamentals improve, but the stock price goes the other way, you buy.

Got ahead of itself last year. Continues to buy. A likely winner in the new industry. Not currently profitable, due to old laws on the books about expense deductions. This will change, though probably not this year. Regulatory changes will reduce their cost of capital. Upswings will outweigh downswings over time.

(A Top Pick Nov 05/20, Up 9%) He bought this in summer 2020 at $10 then shot up to $21 last January because Biden became U.S. President. Curaleaf operates entirely in America. He still believes weed will be legalized in the U.S., so believes in Curaleaf. Exposure to the U.S. market is crucial. Curaleaf is vertically integrated, so checks that box, on top of great governance that owns a lot of shares. Curaleaf is well-positioned and an early mover. Now is a great entry point.

Early in the story was a sceptic. Initiated a position last summer. Biggest company in cannabis by revenue. There is an e-report available. Vertically integrated with good geographic footprint. Good organic growth, with more licenses to open more. Great management team. Pullback is buyable. (Analysts’ price target is $28.06)