Cannabis Stocks React on Recent Polling Data (GTBIF, GRWG, SGMD, CRLBF)
The Cannabis space has heated up in the wake of the vice-presidential debate, wherein Senator Kamala Harris, Joe Biden’s running mate, made crystal clear that the Biden administration, if it prevails, will pursue a course of marijuana decriminalization at the federal level.
“We will decriminalize marijuana and we will expunge the records of those who have been convicted of marijuana,” the Democratic vice-presidential nominee said. “Times have changed — marijuana should not be a crime. We need to start regulating marijuana and expunge marijuana convictions from the records of millions of Americans so they can get on with their lives. As marijuana becomes legal across the country, we must make sure everyone — especially communities of color that have been disproportionately impacted by the war on drugs — has a real opportunity to participate in this growing industry.”
It should also be noted that, at this stage, no challenger to an incumbent in a presidential campaign has ever held such a commanding lead in the polls this near the election. Hence, market participants may begin to act very much like assets should price according to a Biden presidency from here forward, which could mean a powerful jump in interest for cannabis stocks as we close in on the results.
With that in mind, we take a look at some of the more active and interesting names in the space, including: Green Thumb Industries Inc (OTCMKTS:GTBIF), GrowGeneration Corp (OTCMKTS:GRWG), Sugarmade Inc (OTCMKTS:SGMD), and Cresco Labs Inc (OTCMKTS:CRLBF).
Green Thumb Industries Inc (OTCMKTS:GTBIF) is a producer and distributor of cannabis products including flower, concentrates for dabbing and vaporizing, edibles, and topicals. The company markets its products through third party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name.
The company is a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve.
Green Thumb Industries Inc (OTCMKTS:GTBIF) most recently announced the grand opening for adult-use cannabis sales at Rise Naperville (formerly 3C Compassionate Care Center) on October 8 which included a ribbon cutting ceremony with Naperville Mayor Steve Chirico. Profits from the first day of adult-use sales will benefit Loaves & Fishes, a local poverty-fighting and hunger relief nonprofit agency. Rise Naperville is the first store to offer adult-use cannabis sales in Naperville, the third most populous city in the state, and will remain the only store in the city to serve medical patients.
“We worked hard to offer adult-use cannabis sales in Naperville and are excited to meet new customers while continuing to serve our patients,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “We have been proud members of the Naperville community since 2016 and will remain good neighbors, creating jobs and tax revenue and making a positive impact through our corporate responsibility programs.”
And the stock has been acting well over recent days, up something like 19% in that time.
Green Thumb Industries Inc (OTCMKTS:GTBIF) generated sales of $165.8M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 20.1% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($113M against $181.8M, respectively).
GrowGeneration Corp (OTCMKTS:GRWG) is at the heart of the recent return of momentum in the cannabis stock space.
GRWG trumpets itself as a retail hydroponic and organic gardening play in the US market, with a clear ecommerce presence already in place. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
GrowGeneration Corp (OTCMKTS:GRWG) just announced its acquisition of Hydroponics Depot, Phoenix’s largest indoor and outdoor garden center. With the addition of Hydroponics Depot, GrowGen’s portfolio of hydroponic garden centers now includes 29 stores across 11 states.
According to the release, GrowGen’s entry into the Arizona market comes as voters consider Prop 207, which would legalize limited possession, cultivation and use of marijuana for adults ages 21 years or older. If approved, it is estimated that Arizona’s cannabis market could grow from over $700 million market in 2020 into a $2 billion market, including both recreational and medical marijuana.
And the stock has been acting well over recent days, up something like 12% in that time. Shares of the stock have powered higher over the past month, rallying roughly 21% in that time on strong overall action.
GrowGeneration Corp (OTCMKTS:GRWG) pulled in sales of $43.5M in its last reported quarterly financials, representing top line growth of 123%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($14.8M against $18.8M, respectively).
Sugarmade Inc (OTCMKTS:SGMD) is an extremely interesting speculative prospect in the California cannabis marketplace, with a major interest in BudCars, one of the fastest growing vertically integrated cannabis delivery players in the space.
SGMD is a product and branding marketing company investing in operations and technologies with disruptive potential. Its Brand portfolio includes CarryOutsupplies.com, SugarRush™ and Budcars.com.
Sugarmade Inc (OTCMKTS:SGMD) just this morning provided shareholders with a preannouncement of BudCars performance for the three months ended September 30, 2020, which featured steadily strong gross margins, nearly $2M in Gross Receipts, and more than 60% growth in Net Sales, Customer Orders, and Gross Profits on a sequential quarterly basis.
“BudCars continues to perform, setting records in basically every key metric we track,” stated Jimmy Chan, CEO of Sugarmade. “It was a tremendous quarter, with a big jump in customers and regional market share and robust margins on every sale. That paints a very motivating picture as we gear up to significantly expand our service territory, with upcoming expansion into the North Bay and Wine Country areas as well as our upcoming grand opening of BudCars LA.”
According to the release, management notes that BudCars growth has continually tracked ahead of expectations. However, the Company believes that geographic expansion is the key to unlocking a further dramatic acceleration in growth. As announced in a recent Letter to Shareholders, the Company is expanding BudCars initially into the North San Francisco Bay Area and the Wine Country Counties. That will be followed by the grand opening of BudCars Los Angeles, which is anticipated to take place in November.
Sugarmade Inc (OTCMKTS:SGMD) also achieved an additional strategic goal during the quarter by securing rights to a property zoned for cannabis cultivation where it intends to establish a licensed cannabis cultivation facility, which presents the potential to widen profit margins further through vertical supply chain integration and the establishment of a branded line of cannabis products.
Cresco Labs Inc (OTCMKTS:CRLBF) trumpets itself as one of the largest vertically-integrated multi-state cannabis operators in the United States. Cresco is built to become the most important company in the cannabis industry by combining the most strategic geographic footprint with one of the leading distribution platforms in North America.
Employing a consumer-packaged goods approach to cannabis, Cresco’s house of brands is designed to meet the needs of all consumer segments and includes some of the most recognized and trusted national brands including Cresco, Remedi, High Supply, Reserve, Good News and Mindy’s Chef Led Artisanal Edibles created by James Beard Award-winning chef Mindy Segal.
Cresco Labs Inc (OTCMKTS:CRLBF) just announced the approval and the location of its tenth Illinois dispensary in Naperville. The adult-use dispensary is located in one of the busiest shopping areas in Naperville, the 3rd largest city in Illinois with approximately 150,000 residents.
“We have been consistent in choosing locations for our dispensaries in Illinois, focusing on high traffic areas in traditional retail environments. Sunnyside Schaumburg, which is adjacent to Illinois’ busiest mall and our new Naperville dispensary, which shares a block with Costco, Walmart, and Starbucks, are great examples of this strategy,” said Charlie Bachtell, Cresco Labs’ CEO and Co-founder. “Our approach of meeting the consumer where they are and providing a normalized cannabis shopping experience is allowing our dispensaries in Illinois and all Sunnyside stores nationwide to outperform industry averages.”
And the stock has been acting well over recent days, up something like 21% in that time.
Cresco Labs Inc (OTCMKTS:CRLBF) pulled in sales of $130.6M in its last reported quarterly financials, representing top line growth of 226.5%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($100.6M against $222.5M, respectively).
COMPENSATION DISCLOSURE: Section 17(b) of the 1933 Act requires publishers to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b): Tiger Global Management Partners LLC has compensated a third party to produce and present weekly content for various companies for the publication. For more information, please click here. In addition, this article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.
Published at Wed, 14 Oct 2020 12:24:39 +0000