A stock that was trading at $5 a share when it went public recently rose to more than $18 on Wednesday. The company is called Innovative Industrial Properties, and the pot-centric nature of its business caught Wall Street’s eye. could be poised for big gains as cannabis fever takes hold in America.
The “cbd stocks to watch” is a company that is undervalued and has the potential to triple. The stock has been on a downward trend for the past few months, but there are still many people who think it could go up.
Trulieve Cannabis Corp is now the largest and most profitable marijuana company in the United States.
The cannabis industry’s merger and acquisition activity is projected to pick up in 2022, but 2021 has already seen its fair share of large transactions.
Trulieve Cannabis Corp (CNSX:TRUL, OTCMKTS:TCNNF), a Florida-based multistate cannabis business, has acquired Harvest Health & Recreation Inc. (Source: Cision, October 1, 2021, “Trulieve Completes Acquisition of Harvest Health & Recreation Inc., Creating the Largest and Most Profitable U.S. Cannabis Operator.”)
In the world’s largest cannabis market, the $2.0-billion+ merger produced the world’s largest, most lucrative multistate marijuana operator.
The shares of Trulieve, on the other hand, hasn’t seen much of a boost since the news. It’s now hanging around the $25.00 support level. TCNNF’s stock is up 9.5 percent year over year, but it is down 18.5 percent year to date.
Trulieve stock is now trading in a good trading range as a result of recent price movement. Even Wall Street is on board.
The average price objective for Trulieve Cannabis Corp among analysts that provide a 12-month price prognosis is $65.28, with a high estimate of $81.00. TCNNF stock may gain 154 percent and 215 percent, respectively, based on these figures.
StockCharts.com provided the chart.
TCNNF Stock Information
Trulieve existed before to its purchase of Harvest Health, as well as Trulieve after the transaction.
Trulieve Cannabis Corp was the first and largest medical cannabis firm in Florida before the purchase, with more than 2.0 million square feet of indoor and greenhouse growing space spread throughout the Sunshine State. (Source: Trulieve Cannabis Corp, “Overview,” latest viewed November 4, 2021.)
The Florida-based vertically integrated seed-to-sale marijuana corporation manages over 100 shops, controlling more than half of the state’s marijuana industry.
Trulieve operates over 150 dispensaries in 11 states and three strategically located regional hubs, with market-leading positions in Arizona, Florida, and Pennsylvania.
Trulieve’s portfolio of in-house brands and national brand partners grew with the addition of Harvest Health & Recreation Inc’s popular range of brands across numerous form factors. There are almost 900 stock-keeping units in the combined organization (SKUs).
Trulieve Cannabis Corp grew significantly as a result of the purchase. On a combined retail and production footprint basis, it is currently the biggest marijuana business in the United States.
Trulieve Cannabis Corp’s cash position climbed to $289.0 million as a result of the transaction, while cash equivalents jumped to $71.0 million. (Source: Cision, op. cit., October 1, 2021.)
Harvest Health received $55.0 million from the sale of its Florida license, while Trulieve just announced a $350.0 million debt transaction.
Keep track of the second quarter’s results.
Trulieve reported sales of $215.1 million for the second quarter ended June 30, up 78 percent year over year and 11 percent sequentially. (Source: Trulieve Cannabis Corp, “Trulieve Reports Record Second Quarter 2021 Earnings and Expansion Into New Markets,” August 12, 2021.)
Its net income increased by 114% year over year and 36% sequentially to $40.9 million, up from $18.9 million last year and $30.1 million in the first quarter of 2021. This is the company’s eleventh straight profitable quarter.
Trulieve Cannabis Corp’s adjusted profits before interest, taxes, depreciation, and amortization (EBITDA) were $94.9 million in the second quarter. That’s a 55 percent rise over the $61.4 million adjusted EBITDA in the second quarter of 2020, and a four percent increase over the $90.8 million adjusted EBITDA in the first quarter of 2021.
Trulieve Cannabis Corp also reported $144.5 million in second-quarter 2021 gross profits, up 60% from $90.5 million in the prior-year period and up 7% from $135.3 million in the previous quarter.
Among the most recent business highlights is Trulieve:
- In Miami, three additional locations have opened.
- Received notice of intent to apply for a Class 1 production license in Georgia, making it one of only two firms to earn one of the state’s biggest marijuana licenses and consolidating its southern presence.
- Keystone Shops in Philadelphia was completed, increasing the total number of dispensaries in Pennsylvania to seven.
- Initiated operations in West Virginia as the state’s first medicinal cannabis firm to cultivate crops.
“Trulieve has transformed significantly since our first sale in Florida in 2016, and we are just at the starting phases of what we believe we can do as a business,” said Kim Rivers, CEO of Trulieve Cannabis Corp. Ibid.) (Source: Ibid.)
“We think the next phase, including the expected conclusion of the Harvest purchase, will further strengthen the solid foundations we have worked so hard to construct,” she said.
Will Trulieve Cannabis Corp report a profit for the 12th quarter in a row? Investors will find out on November 15 when the company releases its third-quarter earnings before the markets open.
Over the previous several months, the larger cannabis stock market has been declining. While many marijuana companies require a reset, Trulieve stock has merely moved into a better trading area as a result of the dip.
Trulieve Cannabis Corp’s purchase of Harvest Health & Recreation Inc has closed, marking a watershed moment in the company’s history and establishing it as a top cannabis operator in the United States.
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