What Cannabis Investors Should Expect – New Cannabis Ventures

You’re reading a copy of this week’s edition of New Cannabis Ventures’ weekly newsletter, which we’ve been publishing since October 2015. The newsletter includes unique information to help our readers stay ahead of the game as well as links to the most important events of the week. new.

Friends,

It’s been a relatively slow week due to Labor Day and we’re already looking forward to November when the third quarter financials are released. Although we do not expect exceptional results, they should be better than the second quarter results published in August. In particular, we are currently very bullish on ancillary cannabis stocks, which have suffered as their customers face both tight operating margins and reduced access to capital.

In June, we started sharing our optimistic outlook for the second half of the year. With the global cannabis stock index down very slightly since June 30 over more than a third of the second half of the year, the market has yet to rise significantly. We continue to believe that the U-shaped bottom is forming and remain optimistic about the upcoming advance in cannabis stocks.

At our premium subscription service 420 Investor, our optimism has been rewarded since the end of June, despite the fact that the global market is still not moving forward. While the index is roughly unchanged since June 30, our three model portfolios are up 14.5% to 20.9%.

Overall for the year, the S&P 500 is down 14.4%, but the global cannabis stock index is down 55.1%. The bear market in equities in general has not helped and most investors have reduced their risk. In the third quarter, the GCSI fell from 14.76 to 14.75, virtually unchanged, while the S&P 500 was up 7.6%. If the global stock market continues to retrace losses, investors should turn to cannabis stocks, which have very low valuations in our view. We continue to believe that this unique situation can favor the patient investor or a new investor who is just beginning their due diligence in the cannabis industry.


This week’s newsletter is sponsored by PwC

For more information, please click here.


New Cannabis Ventures publishes selected articles as well as exclusive news. Here are some of the most interesting business content from this week:

Exclusives

Could the cannabis market turn the page? New Cannabis Venture’s exclusive summary of BDSA’s monthly cannabis sales data for 11 states reveals that sales in 11 markets rose 4.6% from June to $1.69 billion. On a daily basis, sales increased 1.2% sequentially. In Eastern markets, year-over-year growth in July ranged from -13.5% in Pennsylvania to 27.2% in Florida. In Western markets, year-over-year growth ranged from -23.1% in Colorado to -10.1% in California compared to a year ago.

Bespoke Financial assists the cannabis industry as it faces growing pains by providing clients with non-dilutive financing to increase growth. Bespoke Financial announced a partnership with cannabis technology company BLAZE Solutions earlier this year. Together, they launched a dispensary funding program accessible to cannabis retail stores using BLAZE’s dispensary POS software. In an exclusive interview, co-founder and CEO George Mancheril discussed the company’s new partnerships and its competitive position in the cannabis lending space.

Offers

Cresco Labs completed a $45 million sale-leaseback of its Brookville, Pennsylvania facility to Aventine Property Group. “Our current capital position, combined with the expected cash proceeds from the sale of divested assets related to the impending closing of the Columbia Care acquisition, will place us in a strong position to continue to invest in the high-yield opportunities that arise. ‘offer to us in the short, medium and long term to generate returns for shareholders,” said co-founder and CEO Charles Bachtell. Cresco Yeltrah will continue to operate the facility as it has done since 2017.

XS Financial provided a $15 million lease facility to Ascend Wellness Holding to purchase new equipment with terms up to 60 months. This facility will be used for cultivation, manufacturing and processing equipment in Massachusetts, Illinois and New Jersey. “This transaction exemplifies our strategic goal of collaborating with leading cannabis operators to support their growth, resulting in larger lease agreements and the potential for repeat business,” said David Kivitz, CEO of XS Financial. He added that this funding is “just the start of a long-term and mutually beneficial relationship with Ascend.”

Glass House Brands has completed the purchase of two California dispensaries – the flagship Natural Healing Center in Grover Beach and a second in Lemoore. The company said it expects to complete the acquisition of a third store in Morro Bay in the third quarter and a fourth in Turlock in the fourth quarter. “Given NHC’s positioning in limited licensing markets and its strong customer base, we are excited to add these four dispensaries to our retail portfolio,” the company said in a press release.


For real-time updates, download our free mobile app for android Where Apple devices, like our Facebook page, or follow Alan on Twitter. Share and learn about industry news with like-minded people on the largest group of cannabis investors and entrepreneurs on LinkedIn.

Get ahead of the crowd! If you are a cannabis investor and find value in our Sunday newsletters, subscribe to 420 InvestorAlan’s comprehensive stock due diligence platform since 2013. Get immediate access to in-depth, real-time insights into the publicly traded cannabis sector, including daily videos, weekly chats, model portfolios, a community forum and much more.

Use the professionally managed suite of NCV cannabis stock indices to monitor the performance of publicly traded cannabis companies within the day or over longer periods. In addition to the comprehensive Global Cannabis Stock Index, we offer a family of indices to track Canadian licensed producers as well as the American Cannabis Operator Index and Ancillary Cannabis Index.

Check out the Public Cannabis Company Revenue & Income Tracker, which ranks the top revenue-generating cannabis stocks.

Stay up to date on some of the most important communications from public companies by watching upcoming cannabis investor earnings conference calls.

Check out new listings coming soon with Cannabis Stock IPOs and new issues tracker.

Sincerely,

Alain and Joel

Get a head start by signing up for 420 Investorthe largest and most comprehensive premium subscription service for cannabis traders and investors since 2013.

Alan Brochstein, CFA

Based in Houston, Alan leverages his experience as an online community founder 420 Investor, the cannabis industry’s first and still largest public equity-focused due diligence platform. With his vast network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. To New Cannabis Companies, he is responsible for content development and strategic alliances. Prior to focusing on the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as a freelance research analyst after more than two decades in research and portfolio management. Prolific author, with more than 650 articles published since 2007 on Looking for Alphawhere he has 70,000 subscribers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | E-mail

Receive our Sunday newsletter





Comments are closed.