Can MSO Marijuana Stocks Save Our Portfolios?
Multi-state operator pot stocks are some of the most popular in the cannabis industry. There are several reasons why this is the case. For one, MSO marijuana stocks tend to reach profitability much faster than traditional pure-play pot stocks. This is because they are not typically held down by the capital intensive process of growing cannabis at a large scale. Because of this, many investors believe that these cannabis stocks are definitely cannabis stocks to watch. The second reason is that MSO marijuana stocks typically have a much more stable chance at succeeding in the long term.
These companies are not affected by the same factors that heed growth in the largest marijuana stocks. Rather, they are direct to retailer, and rise incrementally with rises in cannabis demand. Although MSOs are not always a safe pot stock choice, they do tend to be very popular with many cannabis investors. These are just a few of the reasons as to why that is the case. As always, investors should make sure to do their own research before investing in a given cannabis stock. But with that in mind, these are two definite marijuana stocks to watch.
Florida Marijuana Stocks Have Long Term Potential
Trulieve Cannabis Inc. (TCNNF Stock Report) is one of the most popular multi-state operators in the industry. As a vertically integrated MSO, TCNNF stock has been able to post much higher margins than most other stocks in the cannabis industry. During its most recent first quarter, TCNNF stock received a big boost from a 116% year over year increase in revenue. This amounts to around $96 million during that time. In addition, the company posted a net income of around $14 million which is also quite good. Although that is a tad less than the previous quarter, taking coronavirus into account, it isn’t too much of a surprise.
Although TCNNF stock can be volatile at times, it is definitely one of the more popular MSOs. The company has as many as 47 dispensaries in Florida which makes it the largest supplier of cannabis to the state. Because Florida has yet to go full rec, there is an incredible amount of untapped potential there. By the end of the year, we should know whether or not the state allows for recreational cannabis. If so, Trulieve Cannabis would definitely be a marijuana stock to watch, and one in quite an advantageous position as well.
Another Leading MSO Marijuana Stock
Green Thumb Industries Inc. (GTBIF Stock Report) is another one of the most popular marijuana stocks in the industry. GTBIF stock has posted some solid gains in the past few months, but 2020 has undoubtedly been a tough year for all. The cannabis company has as many as 45 dispensaries currently in operation which is a very solid number. In addition, GTBIF stock could see a solid boost from the other 96 licenses that Green Thumb has right now.
The company has a very great position in the Illinois market, which only became legal a few months ago. In addition, GTBIF stock has benefitted greatly from the demand increase for derivative products. Because of this, the company looks poised to be one of the leading MSO pot stocks to watch moving forward. Although profits are still waiting to be seen in big numbers, Green Thumb does have a very solid and interesting business model. With higher margins than most due to the products it sells, the company remains a very interesting marijuana stock to watch.