Is the Recent Breakdown in Curaleaf Holdings Inc (OTCMKTS:CURLF) a Gift?

Is the Recent Breakdown in Curaleaf Holdings Inc (OTCMKTS:CURLF) a Gift?


Shares of Curaleaf Holdings Inc (OTCMKTS:CURLF) dove lower on Monday and Tuesday to start off this week, breaking under key $5/share support, with traders fleeing. However, we would suggest taking a closer look at this one given that sentiment is very poor in the cannabis patch right now – the babies are being thrown out with the bathwater left and right – and the company is showing signs of tangible expansion. As a case in point, Curaleaf just announced the grand opening of Ocala’s first medical marijuana dispensary, bringing the number of dispensaries the company runs in the state to 18.

According to the release, “Curaleaf currently operates 34 dispensaries across the United States. The dispensary fulfills Curaleaf’s commitment to its patients – compassion, education and superior quality medical marijuana products. All patients have access to a safe, accessible and comfortable environment that includes a private consultation room, as well as a community meeting room where educational seminars and resources are available. Furthermore, all patients benefit from the rigorous education and training program each Curaleaf associate completes.”

Curaleaf Holdings Inc (OTCMKTS:CURLF) promulgates itself as a company that operates as an integrated medical and wellness cannabis operator in the United States.

The Company is the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf, Inc. has a presence in 12 states.

Curaleaf, Inc. operates 30 dispensaries, 12 cultivation sites and 9 processing sites with a focus on highly populated, limited license states, including Florida, Massachusetts, New Jersey and New York. Curaleaf, Inc. leverages its extensive research and development capabilities to distribute cannabis products in multiple formats with the highest standard for safety, effectiveness, consistent quality and customer care. Curaleaf is committed to being the industry’s leading resource in education and advancement through research and advocacy.

Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.

The company also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations. As of November 01, 2018, it operated a network of 29 dispensaries. The company was founded in 2010 and is headquartered in Wakefield, Massachusetts.

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As noted above, CURLF just announced the grand opening of Ocala’s first medical marijuana dispensary, bringing the number of dispensaries the company runs in the state to 18. In all, traders will note -30% stripped out of shares during the past week.

What’s more, the name has seen a sharp jump in recent trading volume to the tune of 16% over the long run average as the stock has broken key support levels. That could represent some early signs of capitulation selling. Time will tell.

“In our mission to provide Florida patients with access to medical marijuana, Curaleaf is proud to offer Ocala’s residents the community’s first medical marijuana dispensary,” said Curaleaf Florida President, Lindsay Jones. “Patients will no longer need to drive 40 minutes or more for a full dispensary experience.”

Earning a current market cap value of $1.83B, CURLF has a significant war chest ($62.1M) of cash on the books, which is balanced by about $149.5M in total current liabilities. One should also note that debt has been growing over recent quarters. CURLF is pulling in trailing 12-month revenues of $27.9M. However, the company is seeing recent declines on the top-line on a sequential quarterly basis, with revenues falling at 0% as of its latest reporting period. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $CURLF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $CURLF, either long or short, and we have not been compensated for this article.