Why Recent Action in Curaleaf Holdings Inc (OTCMKTS:CURLF) is Very Bullish

Why Recent Action in Curaleaf Holdings Inc (OTCMKTS:CURLF) is Very Bullish

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If you’re looking for strong signals of a possible bottom, then we would point your eyes to Curaleaf Holdings Inc (OTCMKTS:CURLF). Just after we called for a bottom, the company just hit the wires with earnings, and the stock tried awfully hard to sell off on the news but was simply not capable of it. There was just too much of a bid camped out underneath the action. That’s something we find extremely interesting. Specifically, the company just announced record quarterly pro forma revenue of $110.9 million, along with managed revenue of $55.1 million and Adjusted EBITDA of $3.4 million. The stock initially gapped down and broke under $6/share support before rocketing back higher in reaction.

“We have made significant progress over the last few months in executing on our strategy to become the leading vertically integrated multi-state cannabis operator in the United States,” said Joseph Lusardi, Chief Executive Officer of Curaleaf. “The recently announced acquisitions of Select and Grassroots, as well as, tuck in acquisitions in Arizona, California, Nevada and Ohio position Curaleaf as the undisputed leader in the cannabis industry. With the industry’s largest operational footprint, we have the scale to rapidly accelerate growth across the country. I continue to believe Curaleaf is the best-positioned operator in the cannabis space with the potential to create substantial shareholder value.”

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 record quarterly pro forma revenue of $110.9 million, along with managed revenue of $55.1 million and Adjusted EBITDA of $3.4 million. The action we see now is defined by a powerful sign of accumulation, with the stock gaining in dramatic fashion after a failed attempt to break lower on the recent earnings announcement.

Neil Davidson, Chief Financial Officer of Curaleaf, added, “We achieved a number of milestones in the second quarter, foremost, we generated positive Adjusted EBITDA for the first time in Company history, and we achieved record pro forma revenue of $111 million. As our operations continue to ramp, we expect to see further improvement in our overall operating margins and an improving and accelerating cash flow profile. We continue to focus on positioning ourselves as the industry leader through prudent capital allocation to deliver strong organic growth.”

Currently trading at a market capitalization of $2.5B, CURLF has a significant war chest ($230.6M) of cash on the books, which is balanced by about $34.9M in total current liabilities. CURLF is pulling in trailing 12-month revenues of $117M. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 11%. 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.

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