Top 2 Strong Buy MJ Stocks that Investors Love

Table of Contents

1. Introduction
2. Biden's Decision to Pardon MJ Possession Convicts
3. Impact on the MJ Industry
4. Review for Rescheduling MJ
5. Implications for U.S. MSOs
6. Cure Leaf: A Strong Player in the MJ Industry
7. Revenue and Growth of Cure Leaf
8. European Exposure and Future Estimates for Cure Leaf
9. Cresco Labs: Another Major Player in the MJ Industry
10. Wholesale Revenue and Growth of Cresco Labs
11. Acquisition and Potential Market Expansion for Cresco Labs
12. Conclusion

Introduction

The MJ industry has been gaining Attention recently due to Biden's decision to pardon individuals convicted for MJ possession. This move has sent shockwaves through the industry and has reignited hopes for federal legalization. In this article, we will discuss the impact of Biden's decision, the possibility of rescheduling MJ, and the potential implications for U.S. multi-state operators (MSOs). We will also take a closer look at two strong players in the MJ sector: Cure Leaf and Cresco Labs. These companies have shown significant growth and have the potential to capitalize on the changing regulatory landscape.

1. Biden's Decision to Pardon MJ Possession Convicts

The decision by President Biden to pardon individuals convicted for MJ possession has created waves in the MJ industry. This move signifies a shift in the government's perspective on MJ and raises hopes for federal legalization. By pardoning these individuals, Biden has acknowledged the unjust nature of punishing individuals for possession of a substance that is becoming increasingly accepted across the country.

2. Impact on the MJ Industry

The pardon by President Biden has brought some relief to the beleaguered MJ industry. Stocks across the sector saw a surge on the news, as investors saw it as a positive indication of potential federal legalization progress. However, the impact was short-lived, and stocks quickly plummeted once again. This highlights the uncertainty and volatility surrounding the MJ industry and the need for further progress in federal legalization efforts.

3. Review for Rescheduling MJ

In addition to the pardon, President Biden also expressed his intention to review the classification of MJ as a Schedule 1 drug. Currently, MJ is classified in the same category as heroin and Fentanyl, which severely limits its legal status and medical research opportunities. Rescheduling MJ could have immediate implications for the industry and pave the way for further legalization efforts.

4. Implications for U.S. MSOs

Rescheduling MJ and the potential for federal legalization could be a game-changer for U.S. multi-state operators (MSOs). MSOs, such as Cure Leaf and Cresco Labs, have been operating in a challenging regulatory environment, with limited access to banking services and restrictions on trading on main exchanges. The review for rescheduling and the possibility of safe banking legislation could provide a significant catalyst for MSOs and open up new avenues for growth.

5. Cure Leaf: A Strong Player in the MJ Industry

Cure Leaf is the largest company by market cap in the U.S. MJ industry. They have a strong presence in 21 states, with 144 dispensaries and 29 cultivation sites. Cure Leaf strategically targets heavily populated states like Arizona, Florida, Illinois, New Jersey, New York, Pennsylvania, and Massachusetts. With an extensive footprint and dominant position in key markets, Cure Leaf is well-positioned to capitalize on the changing regulatory landscape.

6. Revenue and Growth of Cure Leaf

Cure Leaf has been a consistent revenue generator in the MJ industry. In Q2 of this year, their revenue reached a Record $337.5 million, representing an 8.1% year-over-year increase. They also delivered an adjusted EBITDA of $86 million, with sequential uptick and year-over-year growth. The launch of adult-use in New Jersey and a focus on vertical sales have been key drivers for their growth.

7. European Exposure and Future Estimates for Cure Leaf

Cure Leaf's European exposure presents a significant opportunity for upward estimate revisions in the coming quarters. The impact of opening up new markets, like New Jersey, has shown positive results and bodes well for the future. With a dominant position in New York and Connecticut and the potential for adult-use sales in these markets, Cure Leaf is positioned to be one of the best ways to play the MJ sector.

8. Cresco Labs: Another Major Player in the MJ Industry

Cresco Labs is another major player in the U.S. MJ industry. Based in Chicago, the company has a footprint in 10 states and owns 21 production facilities and 53 dispensaries. Cresco Labs boasts a portfolio of well-known brands, such as Cresco, Remedy, and Mindy's Edibles. The collaboration with James Beard award-winning chef Mindy Siegel has helped establish a strong brand presence.

9. Wholesale Revenue and Growth of Cresco Labs

Cresco Labs has prioritized its wholesale Channel, which has become the company's top seller branded MJ production. In Q2, their wholesale revenue reached $95 million out of a total of $218.22 million, representing a 1.8% year-over-year uptick. The company has shown consistent growth, with adjusted EBITDA increasing by 11% from the same period a year ago.

10. Acquisition and Potential Market Expansion for Cresco Labs

Cresco Labs' recent acquisition of another company has positioned them for significant market expansion. The combined entity serves a market of over 180 million people, projected to grow to $31 billion by 2025. The acquisition gives Cresco Labs access to key markets like New Jersey, Virginia, West Virginia, Maryland, Colorado, Pennsylvania, and New York. This expansion provides Cresco Labs with a series of tailwinds to drive growth in the future.

12. Conclusion

The MJ industry is undergoing significant changes with Biden's decision to pardon MJ possession convicts. This decision has reignited hopes for federal legalization and has opened up new possibilities for growth in the sector. Cure Leaf and Cresco Labs are two strong players poised to capitalize on these changes, with a strong market presence and potential for further expansion. As the industry evolves, investors should keep a close eye on these companies and the regulatory developments shaping the MJ landscape.

Highlights

• President Biden's decision to pardon MJ possession convicts has sent shockwaves through the MJ industry and reignited hopes for federal legalization.
• The review for rescheduling MJ could have significant implications for U.S. multi-state operators (MSOs) and open up new avenues for growth.
• Cure Leaf and Cresco Labs are two strong players in the MJ industry, with a dominant market presence and potential for further expansion.
• Cure Leaf has shown consistent revenue growth and has a strong focus on vertical sales and adult-use markets like New Jersey.
• Cresco Labs prioritizes its wholesale channel and has a portfolio of well-known MJ brands. The recent acquisition positions them for significant market expansion in key states.

FAQs

1. What is the impact of Biden's decision to pardon MJ possession convicts?
   • Biden's decision has brought both relief and volatility to the MJ industry. It signifies a shift in the government's perspective on MJ and raises hopes for federal legalization, but the market has experienced fluctuations in stock prices.
2. How will the review for rescheduling MJ affect the industry?
   • The review has the potential to reclassify MJ and remove it from the list of Schedule 1 drugs. This could have immediate implications for the industry and pave the way for further legalization efforts.
3. What are the growth prospects for Cure Leaf and Cresco Labs?
   • Cure Leaf and Cresco Labs have shown consistent revenue growth and have a strong market presence. With the changing regulatory landscape, these companies have the potential to expand further and capitalize on new market opportunities.