One of the best-known marijuana stocks analysts is Vivien Azer, a director at Cowen. She has been following the cannabis industry since 2016, which is even before legalization in Canada. Today, her company provides analysis of not only Canadian, but also US and international companies in the space and insights into the CBD market.
Recently, in an interview, she was asked about her best stock selection in the space: Green Thumb Industries (OTC 🙂 (CSE :).
Azer loves this Chicago-based breeder because, as she explained, it is one of only 10 cannabis licensed companies in New York State, poised to become a multi-billion dollar cannabis market.
Green Thumb's stock has performed relatively well in 2021, up about 12.5% ??since the start of the year. However, they are up nearly 300% in the last 12 months. Shares were up 0.29% yesterday, closing at $ 28.50 in New York and C $ 35.50 on the Toronto Stock Exchange.
What Azer likes about the company is its profitability and what it calls the & # 39; geographic mix & # 39; calls. the states in which it operates
Its strategy was to develop in states with large populations and limited cannabis cultivation licenses. This includes Illinois, Massachusetts, New York, Florida, and Ohio. And so far, this approach has worked well, as two of these relatively large markets – Illinois and Massachusetts – have moved from allowing the purely medicinal use of cannabis to a combination of medicinal and recreational use.
Green Thumb is set to reveal its first quarter earnings results on May 12, after the close.
In the fourth quarter it rose by almost 13%. For the full year, revenues were $ 556.6 million, representing a year-over-year profit of just over 157%.
The last quarter was also the fourth consecutive quarter of positive cash flow from operations.
This strong balance sheet is another reason Azer loves the stock.
Sales of Cannabis Derivatives Fastest Growing Segment in Canadian Market
The first full year study of the size of the Canadian cannabis derivatives market has arrived, and the figures are a positive signal to the industry.
Canadians bought $ 109 million ($ 87.8 million) worth of edible cannabis products in 2020, according to Statistics Canada.
While that figure represents only a small fraction (4.2%) of legal cannabis sales, these figures are encouraging as stock and product selection is expected to improve.
The important measure being watched is the fact that the growth of edible cannabis products, according to figures from StatsCan, was significantly the rest of the total marijuana industry.
Canada's regulated recreational cannabis market by 2020 would be C $ 2.6 billion. Most of that, just over three-quarters, came from the sale of dried cannabis.
An analyst said that the sales mix in Canada is very similar to what was seen in Colorado in the early stages of legalization. on speculation that derivatives could eventually account for about 50% of the Canadian market. The availability of cannabis-infused drinks and edibles is still relatively limited in terms of accessibility.
Tilray Change Voting Rules
Tilray (NASDAQ 🙂 shareholders' long-awaited vote to approve proposed merger with Aphria (NASDAQ 🙂 (TSX 🙂 is now expected to be held on Friday, 30 April.
A day after it was announced that the vote had been postponed to give shareholders more time, the cannabis grower amended his statutes to lower the quorum requirement. The vote was originally scheduled for April 16. The new quorum requirement has been lowered to 33% of shareholders, from the previous 50% -plus-1 threshold.
Shareholders who have already cast votes do not have to re-vote.
Analysts have speculated that the company's shareholder base includes many private investors, making shareholder revenues more volatile.
Earlier this month, Aphria shareholders voted overwhelmingly in favor of the merger agreement with just over 99% of the votes cast. The companies announced the US $ 3.9 billion (C $ 5 billion) merger agreement in December. The new combined company, which will trade under the Tilray ticker, will become the largest cannabis grower in the world.
