Why U.S. Pot Stocks Are Seeing Their Revenues Explode


2021-08-26 21:30:24 PROFIT


If you examine the marijuana industry through the lens of U.S. pot stocks vs. Canadian pot stocks, it’s easy to see which side is winning. U.S. marijuana stocks are way ahead. They’ve been seeing impressive growth while Canadian marijuana stocks have slowed. And, more importantly, American marijuana companies have seen explosions in revenue. Of the handful of marijuana stocks that are set to crest 10-figure annual revenues (over $1.0 billion), all of them are in the U.S. There is, of course, one of the top marijuana stocks—if not the top marijuana stock: Curaleaf Holdings Inc (CNSX:CURA, OTCMKTS:CURLF). Curaleaf stock is definitely worth watching. Then there’s Cresco Labs Inc (CNSX:CL, OTCMKTS:CRLBF). Reporting revenue of $178.4 million for the first quarter of 2021, Cresco isn’t quite on pace to crest $1.0 billion in 2021 (though $178.4 million is still impressive). (Source: “Cresco Labs Announces First Quarter 2021 Financial Results Under U.S. GAAP,” Cresco Labs Inc, May 27, 2021.) And while Cresco only managed a 10% gain in revenue quarter-over-quarter, it did show a massive 168% gain year-over-year. In other words, massive revenue gains aren’t out of the ordinary for Cresco Labs stock. What’s more, the company has been making moves to make that $1.0-billion milestone more attainable. Cresco recently expanded into Pennsylvania with a fourth dispensary opening in late June (marking Cresco’s 33rd operating U.S. store). (Source: “Cresco Labs Announces Opening of Sunnyside Philadelphia, Its Fourth Dispensary in Pennsylvania and 33rd Operating U.S. Store,” Cresco Labs Inc, June 21, 2021.) Trulieve Cannabis Corp (CNSX:TRUL, OTCMKTS:TCNNF) is closer to the $1.0-billion revenue mark compared to Cresco. Trulieve reported revenue of about $193.8 million for Q1 2021, a 15% jump from the previous quarter. (Source: “Trulieve Reports Record First Quarter 2021 Revenue of $193.8M, Net Income of $30.1M and Adjusted EBITDA of $90.8M,” Trulieve Cannabis Corp, May 13, 2021.) The company also made moves to expand, recently acquiring Harvest Health & Recreation Inc (CNSX:HARV, OTCMKTS:HRVSF). Harvest Health generated about $88.8 million in revenue for Trulieve in Q1 2021. Even without accounting for growth, the newly merged company is almost certain to crest the $1.0-billion revenue horizon in 2021. And there’s every reason to expect that Trulieve stock hasn’t stopped growing. The company also recently acquired a licensed recreational pot dispensary from Nature’s Remedy of Massachusetts, Inc. in Worcester, MA. (Source: “Trulieve Completes Acquisition of Marijuana Retail License for Dispensary Location in Worcester, Massachusetts,” Cannabis Investing News, June 30, 2021.) Moreover, Trulieve recently opened a dispensary in Central Florida (Source: “Trulieve Expands Access to Medical Cannabis in Central Florida With New Winter Park Location,” Trulieve Cannabis Corp, June 23, 2021.) I love to see expansionist moves like this. After all, as pot companies show financial gains, it inevitably spurs gains in their stock prices. The best way for a company to grow its revenue in the marijuana business is to expand its customer base to the myriad untapped markets, more of which open every month due to U.S. state-by-state marijuana legalization. Chart courtesy of StockCharts.com So what accounts for U.S. pot companies showing such promising revenues while Canadian competitors remain relatively stagnant revenue-wise? The main reason has to do with market size. While Canada has legalized marijuana nationally and the U.S. still technically maintains federal prohibition against the substance, California alone accounts for a larger and richer market than all of Canada. And while there’s still tons of room for companies to grow in Canada’s legal pot market (the black market is still thriving, which is eating into potential revenue streams for Canadian marijuana companies), that will take time. U.S. marijuana companies, by contrast, have opportunities galore to expand into new markets with each passing month. Every new state that legalizes marijuana offers potentially dozens of millions of new customers. And due to the federal prohibition and the restrictions it puts on non-U.S.-based marijuana companies, there’s essentially a golden opportunity for U.S. pot stocks because their competition is artificially limited. Now, that doesn’t mean Canadian pot stocks are doomed. Far from it. Instead, it simply means that Canadian pot companies have to find other ways to expand. Global markets outside of Canada and the U.S. present great opportunities. There’s also room to expand within the Canadian cannabis market with new products or cheaper marijuana that can help displace the black market. But the real surge is likely to come when we see federal U.S. marijuana legalization. With that, Canadian marijuana stocks will have the ability to access lucrative markets that have long been closed off to them. And with their established infrastructure, they should be able to quickly take advantage of this new opening, even if U.S. marijuana stocks will have had a years-long head start by then. This, however, may actually play out in favor of Canadian pot stocks in the long term. They could end up seeing larger revenue surges compared to U.S. pot stocks when federal U.S. legalization arrives. Furthermore, a simple acquisition after American marijuana legalization is enacted could send share prices soaring as Canadian companies access the new market. With that in mind, some Canadian marijuana stocks have already set up terms for deals post-legalization. While U.S. marijuana stocks are where I’d focus my attention if I was looking for large, fast gains, I believe that both U.S. and Canadian pot stocks have the ability to see massive growth in the coming years. U.S. pot stocks may hold the revenue advantage now, but when the U.S. cannabis market fully opens up, that may reveal Canadian marijuana stocks as the true winners.
如果你通过美国大麻股和加拿大大麻股的镜头来审视大麻行业,很容易看出哪一方是赢家。 美国大麻库存遥遥领先。他们看到了令人印象深刻的增长,而加拿大的大麻库存却有所放缓。更重要的是,美国大麻公司的收入出现了爆炸式增长。 在少数几家年收入将达到10位数(超过10亿美元)的大麻库存中,所有这些库存都在美国 当然,有一个顶级大麻股--如果不是顶级大麻股的话:Curaleaf Holdings Inc.(CNSX:CURA,OTCMKTS:CURLF)。Curaleaf股票绝对值得关注。 然后是克雷斯科实验室公司(CNSX:CL,OTCMKTS:CRLBF)。 克雷斯科报告称,2021年第一季度收入为1.784亿美元,但预计2021年不会达到10亿美元的顶峰(尽管1.784亿美元仍然令人印象深刻)。(来源:“克雷斯科实验室根据美国公认会计原则宣布2021年第一季度财务业绩”,克雷斯科实验室公司,2021年5月27日。) 虽然克雷斯科的收入仅比一季度增长10%,但它确实显示出168%的同比大幅增长。换句话说,Cresco Labs股票的巨额收入增长并不罕见。 此外,该公司一直在采取行动,使10亿美元的里程碑更容易实现。 克雷斯科最近在宾夕法尼亚州扩张,第四家药房于6月下旬开业(标志着克雷斯科在美国运营的第33家门店)。(来源:“克雷斯科实验室宣布在费城阳光城开业,这是其在宾夕法尼亚州的第四家药房,也是在美国运营的第33家门店,”克雷斯科实验室公司,2021年6月21日。) 与克雷斯科相比,Trulieve大麻公司(CNSX:TRUL,OTCMKTS:TCNNF)的收入更接近10亿美元。 Trulieve报告称,2021年第一季度收入约为1.938亿美元,较上一季度增长15%。(来源:“Trulieve报告2021年第一季度营收为1.938亿美元,净收入为3010万美元,经调整EBITDA为9080万美元,”Trulieve Cannabis Corp,2021年5月13日。) 该公司还采取了扩张举措,最近收购了Harvest Health&Rescreation Inc.(CNSX:HARV,OTCMKTS:HRVSF)。2021年第一季度,嘉实健康为Trulieve创造了约8880万美元的收入。 即使不考虑增长,这家新合并的公司几乎肯定会在2021年达到10亿美元的收入水平。 我们完全有理由期待Trulieve的股票并没有停止增长。 该公司最近还从马萨诸塞州的自然补救公司收购了一个特许休闲大麻药房,该公司位于马萨诸塞州伍斯特。(来源:“Trulieve完成收购马萨诸塞州伍斯特药房位置的大麻零售许可证”,《大麻投资新闻》,2021年6月30日。) 此外,Trulieve最近在佛罗里达州中部开设了一家药房(来源:“Trulieve在佛罗里达州中部扩大了医用大麻的获取,新的冬季公园位置,”Trulieve Cannabis Corp,2021年6月23日。) 我喜欢看到这样的扩张主义举动。毕竟,随着大麻公司表现出财务收益,它不可避免地刺激了它们的股价上涨。公司在大麻业务中增加收入的最佳方式是将其客户群扩大到无数未开发的市场,由于美国各州大麻合法化,每个月都有更多的市场开放。 图表由stockcharts.com提供 那么,是什么原因导致美国大麻公司表现出如此良好的收入,而加拿大的竞争对手在收入方面仍然相对停滞不前? 主要原因与市场规模有关。虽然加拿大已经在全国范围内将大麻合法化,美国在技术上仍然保持对这种物质的联邦禁令,但仅加州就占了比整个加拿大更大、更丰富的市场。 虽然加拿大合法大麻市场仍有大量公司发展的空间(黑市仍在蓬勃发展,这正在侵蚀加拿大大麻公司的潜在收入来源),但这需要时间。 相比之下,美国大麻公司每月都有大量机会向新市场扩张。每一个大麻合法化的新州都有可能提供数千万新客户。 由于联邦政府的禁令及其对非美国大麻公司的限制,美国大麻股基本上有一个黄金机会,因为它们的竞争受到人为限制。 现在,这并不意味着加拿大大麻库存注定要失败。远非如此。相反,这只是意味着加拿大大麻公司必须找到其他方式来扩张。 加拿大和美国以外的全球市场提供了巨大的机遇。 加拿大大麻市场也有扩大的空间,有新产品或更便宜的大麻,可以帮助取代黑市。 但当我们看到美国联邦大麻合法化时,真正的激增可能会到来。这样一来,加拿大大麻库存将有能力进入长期以来对他们关闭的有利可图的市场。 凭借他们已经建立的基础设施,他们应该能够迅速利用这一新的机会,即使到那时美国的大麻库存已经领先一年。 然而,从长期来看,这可能会对加拿大大麻股有利。当美国联邦合法化到来时,与美国大麻库存相比,他们最终可能会看到更大的收入激增。 此外,随着加拿大公司进入新市场,美国大麻合法化后的简单收购可能会导致股价飙升。考虑到这一点,一些加拿大大麻库存已经为合法化后的交易设定了条款。 如果我想寻求大幅快速上涨,我会关注美国大麻股,但我相信美国和加拿大大麻股在未来几年都有能力看到大幅增长。 美国大麻股现在可能拥有收入优势,但当美国大麻市场完全开放时,这可能会显示加拿大大麻股是真正的赢家。