Launching into a sparkling, evolving investment like a cannabis stock is a potential shortcut to becoming a millionaire. When you allocate funds to a rapidly growing industry, your chances of great success are much greater than normal, if you can tolerate risk.
At the moment, the next three companies are closer to being half-done than to minting millionaires. Its market capitalizations are small and most of its growth will likely occur in the future. You shouldn’t bet your life savings on your success, at least not in its current form. However, they may have signs of greatness that could help a small investment build a long-term portfolio, to the point of generating millions for shareholders.
1. Jushi Holdings
Jushi Holdings (OTC: JUSHF) It has most of the makings of a stock poised for a massive boom. First, its quarterly revenue has skyrocketed by more than 6,400% since the beginning of 2019 thanks to its presence in key US cannabis markets like Pennsylvania, where it operates 10 medicinal dispensaries. 2021 will see a massive expansion of Jushi’s facilities across the board. In Virginia, it plans to open five new dispensaries (an increase of 500%) until the end of next year, and other states will see similarly large openings proportionally.
With growth like that, it wouldn’t be too surprising if revenue spiked in a year or two too. That would give the stock the catalyst it needs to enrich shareholders, but profitability may be a drag for a while longer. Depending on the level of demand and the pace of marijuana legalization, a turn to sell adult-use cannabis to a wider market could also be a tailwind. In the meantime, be sure to take a look at Jushi’s full annual report for 2020, which should fall by the end of April, to see what management is doing to prepare the company for its future expansion.
The story of Curaleaf Holdings (OTC: CURLF) It is one of increasing sales volume and increasing efficiency. Since 2019, revenue has more than doubled and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 456%. Equally important is the fact that the company is not a regional rinky-dink competitor where such impressive statistics are unlikely to scale upward. Curaleaf has facilities in nearly half of the US states and a strong presence in core markets such as Pennsylvania, New York, Massachusetts, and California.
It is also poised to be active in the EU medical cannabis markets, which could be the boost it needs to generate massive profits for shareholders in the future. Earlier this month, he acquired a vertically integrated European cannabis company for $ 286 million in stock and a small chunk of cash. Once the deal closes in the second quarter of this year, Curaleaf will have production and retail locations spread across the EU, and that will generate even more revenue alongside the expansion of the US operations of the largest cannabis suppliers in the world, which may well enrich investors.
3. Green Thumb Industries
Like the other actions I’ve talked about, Green Thumb Industries (OTC: GTBIF) you are in the enviable position of seeing your income and profits grow dramatically at the same time. Its 2020 revenue increased 157.2% to $ 556.6 million as a result of its efforts to expand into the US market. To maintain this revenue growth, the administration has prioritized the launch of new products to match consumer preferences and by all indications, it is working.
In the near future, Green Thumb plans to more than double its retail holdings, and it already has the licenses it needs to move forward. That includes expanding into the largest state markets in the US Like, yeah you guessed it, Pennsylvania and New York. In the future, investors can expect the company to continue gobbling up smaller regional operators and opening new stores. If things continue as they have been, Green Thumb could multiply in value for years to come.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are variegated! Questioning an investment thesis, even one of our own, helps all of us think critically about investing and make decisions that help us be smarter, happier, and wealthier.