#43 - 5 Reasons to Be Excited About Cannabis
After a strong week for cannabis stocks we delve into the reasons for optimism for cannabis investors.
1. Strong Results Prove out the Investment Thesis
a. GTI posting 25% EBITDA on $100M USD of revenue
b. TRUL likely to post 50%+ EBITDA on similar revenue
2. New Markets set to Open
a. NJ (9M) and AZ (7M) both on the 2020 ballot
b. NJ could cause domino effect with PA (13M), NY (20M)
3. COVID-19 Proving Sales are “sticky”
a. Cannabis being recession proof / resistant; defensive sector
4. Canada Getting Better
a. 2.0 rollout and Ontario retail expansion
b. ACB and Canopy improving (not out of the woods yet)
5. Wildcard – SAFE Act & Legalization / Election Talk
a. Possibility to get SAFE through senate with COVID bill
b. Potential election talk related to cannabis legalization