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Best Cannabis Stock For 2021 - YouTube
Channel: Profit Trends
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2020 is finally in the books and today
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we're going to talk about one of
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the hottest industries kicking off 2021.
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[Music]
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[Applause]
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hi i'm matthew carr chief trend
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strategist for the oxford club and thank
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you for watching
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this episode of market trends so there
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have been a lot of fantastic
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performances from cannabis plays over
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the past
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nine months or so in fact some have
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soared so much
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that many investors feel they may have
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missed the boat but
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don't worry there are a lot of great
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companies in the cannabis space and
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today i'm going to share
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my favorite undervalued pot stock so
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last year cannabis enjoyed this epic
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rebound after two brutal years of the
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longest bear market in the nascent
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industry's history
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shares of many american cannabis
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companies surged to
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new all-time highs we saw the u.s
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marijuana index
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outpace the broader markets by a
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significant margin
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gaining more than 61 percent last year
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but i want to stress that out
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performance
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fails to truly capture just how massive
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the turnaround was for
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for for the industry from its march lows
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the u.s marijuana index
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rocketed more than 313 percent higher to
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close out 2020.
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now all in all it was an historic year
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for american cannabis but
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i believe this is only the first step of
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the next leg higher i've long forecast
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that the american cannabis industry
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would be worth approximately 80 billion
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dollars by the end of the decade by
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2030 and from where we stand now that
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estimate might be
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a little conservative after a clean
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sweep on election day
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one of the only undisputed victories of
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this past election
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the u.s now has 15 states that allow for
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adult use and 36 that allow for medical
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use
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here i expect that pace to pick up speed
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in fact i believe
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as many as a half dozen states could
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debate
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expanded legalization this year the
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coasts
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are filling in with recreational markets
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and even though the east coast
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has largely legalized medical use with
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that
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recent recreational approval in new
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jersey i
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expect this situation to change quite
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rapidly
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so i believe my home state of maryland
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will likely debate adult use as will
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connecticut new mexico new york
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pennsylvania rhode island
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and virginia there's this tremendous
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pressure to recoup
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you know all the tax revenue as well as
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provide more jobs
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due to the economic devastation
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triggered by the pandemic
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that alone will foster an accelerated
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pace of legalization
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cannabis strolled into 2021 on this high
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but the results of the recent two
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georgia senate seat
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uh runoff elections will now have
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profound
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impacts on the industry remember the
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house
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controlled by democrats passed the safe
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banking act in 2019
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but this bill was basically set in the
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corner to rot in the senate you know
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the republican trolled uh legislator
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just refused to vote on it
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in 2020 the house passed the moore act
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again the senate refused to even vote
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on this bill these are two uh
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pro-marijuana measures
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that would completely change the
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industry now for the past
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several years i've argued that the
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senate is where cannabis legislation
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goes to die
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and that's because cannabis has you know
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unfortunately become
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this partisan issue democrats are in
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favor of legalization
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republicans tend to not be so for
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example on the house vote of the moore
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act
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of all the nays almost all of them
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were republican but now the situation
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has completely changed
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now the floodgates are poised to open
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because of those uh
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results of those georgia elections so
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for investors the big question is what
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are my
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favorite ways to play this well my top
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plays
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haven't changed from what i've talked
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about over the past year grow generation
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the largest hydroponics retailer in the
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us is still a fantastic
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option to me shares are up almost a
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thousand percent over the past year
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but as the market expands you know this
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will continue to be a big winner
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cura leaf the largest multi-state
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operator or mso in the u.s
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is my top plant touching plate you know
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shares have more than doubled over the
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past year
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the company is also reporting
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record-breaking revenue numbers not just
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for itself but the entire cannabis
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industry no one else is reporting
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uh revenue numbers anywhere near as high
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as cure leaf is
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and i still like the msos green thumb
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industries and true leaf
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both of which are reporting more than
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100 million dollars in quarterly revenue
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but with all that being said there is a
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company i believe
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that is about to play ketchup and that's
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cresco labs
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the mso is headquartered in chicago and
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it's a company i've followed for
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many years it currently operates 19
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dispensaries and
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15 production facilities in nine states
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and six of those nine states
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are billion dollar plus markets but
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cresco
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is taking a kind of a different route
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it's taken the consumer packaged goods
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approach to the industry
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for example several years ago it teamed
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up with james beard award-winning chef
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mindy siegel
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to produce mindy's a line of edibles and
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it's this cpg approach
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that is the key to cresco's success
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because its products are now found in
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more than 830 dispensaries across the
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u.s
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and it has more than 5 000 skus in
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production
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right so this is all paying off for
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cresco as it's recently joined
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the 100 million dollar plus quarterly
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revenue club
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in the third quarter the mso reported
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153.3 million dollars in revenue
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that was a 63 sequential increase
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sequential from the second quarter even
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better adjusted ebata soared 182 percent
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to 46.4
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million dollars but on the horizon
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things are still looking exceptionally
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strong
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for the fourth quarter we're looking for
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a 292.7
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increase year-over-year in sales to
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162.5 million dollars and for 2021
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revenue is projected to top 806 million
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dollars as it reports profits of 21
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cents per share
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all right so those are a lot of numbers
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but that is a lot
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of upside now here's the deal while
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shares of cure relief at green thumb
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even planet 13 true leave and others
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have more than doubled over the past
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year
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shares of cresco have gained about 78
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still beats the market
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uh still a fantastic gain but that is
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trailing uh
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those leading peers but i think with the
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growth cresco has ahead
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as well as the prospects for the entire
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cannabis industry
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not just this year but for several years
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to come
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i think cresco's shares are really about
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to pick up speed in 2021
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and so this is a company that i think
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you're looking for an undervalued kind
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of
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forgotten in the shuffle play in
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cannabis
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this is a perfect opportunity well i'm
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matthew carr
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chief trend strategist for the oxford
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club thank you for watching this episode
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of market trends
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for more information like this be sure
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to go down to the description and sign
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up for my free e-letter
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until next time here's to how returns
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