At New Cannabis Ventures, the generally bullish stock analyst Alan Brochstein suggests multi-state operators have turned a corner:
As Q2 earnings season nears an end for the American multi-state operators, it’s clear that it represented an inflection point for the sector, with the large MSOs all enjoying “beat and raise” quarters. Investors shouldn’t have been too surprised, as the strong growth across the country for legal cannabis has been quite evident in the point-of-sale data, but the extent of the growth at the largest companies was truly extraordinary, with the average of the six largest revenue generators that have reported increasing sequentially by an average of 28%.
Strong quarters from Curaleaf, Trulieve, Green Thumb Industries and Cresco Labs figure in his assessment that "spectacular growth appears sustainable."
- These companies, Brochstein writes at Forbes, are on track to reach $1B in annual revenue "soon."
At Green Entrepreneur, former Cresco exec Joe Caltabiano is more skeptical, "Strong quarterly topline revenue doesn’t necessarily equate to long-term viability."
- For surviving the pandemic, "bigger isn't always better," Bloomberg writes.