Green Thumb Industries GTBIF Stock Moves to $60 And I Show Why

Green Thumb Industries GTBIF Stock is one of the marquee cannabis stocks. At some $6B, they are one of the largest with revenues in the hundreds of millions per quarter. While Green Thumb Industries continues to build up its footprint at a solid pace, certain margins are slightly behind. But, by no means is this a slight. Management will certainly get the company there. In fact, for those that are savvy to understand how margins work then, you may also be able to see increased potential in earnings from current revenue. But, current revenue is going to continue to grow as Green Thumb continues to expand its footprint. And, if margins continually advance simultaneously, this becomes a powerful engine for profit growth. With that, Green Thumb Industries GTBIF stock will continue to advance. I will speak about margins in the various sections.

Cannara Biotech LOVFF Stock with Big Upside Potential of 10x

Cannara Biotech, LOVFF stock, has been on my radar for a moment.  They have been hitting my Top 10 videos here and there, and I have taken notice.  The two questions I have are: Is the revenue growth sustainable and potentially continuous? And, would this translate into a solidly performing cannabis stock?  I wonder if Cannara Biotech is an undervalued marijuana stock to buy now?Cannara Biotech is an undervalued marijuana stock to buy now? There was a substantial gain in revenues that really pushed Cannara Biotech LOVFF stock into the limelight.  This was driven by the full-quarter revenue gains for their newly opened dispensary.  Also, Cannara Biotech is expanding into a new 1M  sq. ft. facility that will help them expand offerings and, this will be beneficial long term.  As Cannara Biotech grows its offerings, this will allow for them to control costs.  Eventually, the current costs will be outsized by future revenues.  This makes for a long term investment with a big-picture outlook. Another plus over the past quarter was a refinancing of credit facility that dropped interest costs from 13% down to a much more manageable 4%.  If a lender is going to drop interest rates for lending a company money this shows that there are a lot of positive aspects of the company’s future potential.

Harborside HBORF Stock Upside Potential For Long Term Investors

Harborside HBORF stock is a fully vertical cannabis company in the Bay Area, California, as well as having a dispensary up in Oregon.  There are six total dispensaries; 3 fully owned, 1 fully managed, 1 with a total of 21% ownership; all in California, as well as the Oregon dispensary.  At the beginning of the year, Harborside guided that they would be printing about $65M - $75M in revenue.  They just recently put in their MD&A that they will miss this.  Given what they have printed, they are looking like they might get luck to hit $55M - $65M.  Also, Harborside is looking to divest Oregon and focus entirely on California.  That is a good idea, if you ask me as this is the biggest single market in the United States, even bigger than the entire country of Canada.  Also, there is a dispensary that Harborside is moving to a different location.  By doing this, Harborside will be able to better serve the area and, there will be cost savings.  For now, it does not appear that the State of California is issuing any new dispensary licenses.  This could be both an advantage and disadvantage simultaneously. For now, focusing on cost savings, bringing the core business into a collective sovereignty, will better position Harborside moving forward. I wanted to break down what there is now for the company but, looking forward is going to be difficult since we do not have the numbers for splitting out the company.  Nonetheless, this is a decent starting point for keeping an eye on Harborside.

Hollister Biosciences HSTRF Stock Below market with 10x upside potential

Hollister Biosciences HSTRF stock is a stock that could easily be in my Top Picks of Best Marijuana Stocks to Buy Now. This is a stock that could easily be much higher in price. But, this is just the beginning. I got a question posed to me in the newly launched forum regarding the fact that Hollister Biosciences is in the process of insourcing all of its production. By doing this, Hollister Biosciences has the potential to increase its gross margins since they will not be producing its own products. This will be far more cost-effective and profitable. Already, Hollister Biosciences holds the distinction of being the most efficient of all of the cannabis stocks I monitor from an operating cost perspective with 8.1%. The very best companies usually print at roughly 30% - 35%. Being in the single digits is beyond remarkable with this metric and, Hollister Biosciences has been in this neighborhood for several quarters. A subscriber to this sight, William, asked if there would be any changes to this specific metric should Hollister Biosciences start insourcing production. The short answer to that is no. Production fo product usually falls in the gross revenue & profits section of the revenue statement, so therefore, operating costs would not necessarily decline.

MedMen MMNFF Stock – is it time to buy?

MedMen MMNFF Stock is a stock that I have wondered if they would make it.  I got an email from a follower/subscriber asking what he should do with this particular holding.  Truth is, I had not looked at MedMen in some time so, was curious as to what was going on.  If you simply look at their assets/over liabilities, one would say it is time to tap out.  But, MedMen still has sufficient access to capital, that lifeline a desperate company would need.  MedMen has recently done two capital raises; one for $10M and then another for $100M.  This is substantial for MedMen simply because this will give them the necessary capital to move forward. Another development for MedMen was Tilray's recent acquisition of the senior secured debt.  When that first came across my screen I sort of wondered if there was a pending bankruptcy about to happen.  The thing is, senior secured debt is debt against assets the company has.  And, it is secured by these assets while simultaneously, the debt is senior in the sense that it comes first in a bankruptcy.  I actually thought Tilray TLRY stock was going to force MedMen into bankruptcy in order to acquire the company out of bankruptcy on a dime.  But, the recent capital raise makes it so that this would not be possible. So, if you are a "bag holder" of MedMen MMNFF stock, what does one do?

Auxly Cannabis CBWTF Stock Profits and Reasons To Buy

Auxly Cannabis CBWTF stock is in that middle area where they are performing very well yet are still falling short in other areas.  This may present a solid opportunity.  They are the #6 stated cannabis producer in Canada.  Auxly Cannabis states their goal is to be somewhere in the neighborhood of 7% - 9% Canadian producer by year's end.  That would push revenues above $20M and, that is an interesting trajectory.  If Auxly can increase revenues at that pace then metrics will improve significantly, making Auxly an interesting acquisition. Simultaneously, Auxly has a strategic partnership with Sundial Growers, SNDL Stock, which that could become another interesting development.  Sundial, of course, recently finished the Inner Spirit Holdings acquisition giving them about 100 dispensaries to work with.  More recently, Sundial just announced another acquisition where they are picking up an alcohol distribution company that also has 62% ownership of a company that holds 62 dispensaries.  One of the key focuses for management is to get to the 7% - 9% threshold of total market size.  Given the size of Sundial's new reach, it would seem an obvious extension that Auxly explores more deeply the relationship with Sundial and expand offerings in these dispensaries.  I am interested in how this may play out.

TILT Holdings TLLTF Stock With Significant Upside Potential

TILT Holdings TLLTF Stock was once one of my top picks when I first launched this site.  There were metrics that I liked about this cannabis company and I felt that potentially, TLLTF was an undervalued marijuana stock.  Revenues are starting to increase and other metrics are holding steady at levels that are ultra-competitive.  Yet, gross margins remain lower than the highest levels.  At the same time, there may be a bit of stigma behind previous management.  Where this could be a detriment to current share holders of TLLTF, it is an opportunity for future shareholders.  Also, there are several new developments for the company and this will add more revenue moving forward. But, what I wanted to look at was a natural progression of the existing infrastructure and show how small increases in revenue will add additionally to the bottom line.  Right now, gross margins are shallow at about 30%.  But, operating efficiencies are also at 30%, showing that management is keeping operating costs in check relative to revenue.  That is very promising. TILT Holdings is EBTIDA profitable and, so, increases in revenue will add increasing marginal profits to the bottom line.  Ultimately, TILT Holdings was removed from my Top Picks as I saw a lag in the gross margins and revenue growth.  Revenue is starting to heat up and gross margins will surely follow. Let's break down what this might look like.