The 2016 general election November vote was one of the biggest catalysts for the cannabis space. 2020 is shaping as potentially another similar situation, with 4 states already on the ballot for legalization (2 for recreational) and another 6 states pushing to get on the ballot (5 for recreational), making it potentially even more explosive for the overall legalization movement than we saw in the historic 2016 process.
The rationalization for this last claim is about percentage change: the ultimate shift would be to get cannabis legalized on a recreational basis in the majority of the US, thereby putting pressure on the federal government to accept the verdict by states and start removing federal statutes around cannabis, which would likely accelerate the dominoes as a “tipping point” phenomenon.
In percentage terms, if all states seeking to get on the ballot for recreational “adult use” legalization are successful in doing so, then 2020 will be a bigger shift (provided they all pass) than the movement in 2016.
In other words, start getting your pot stock portfolio picks together ASAP. Below you will find our thoughts and analysis on some of the more widely discussed names in the space, including: Medical Marijuana Inc (OTCMKTS:MJNA), Cresco Labs Inc (OTCMKTS:CRLBF), MCTC Holdings Inc (OTCMKTS:MCTC) aka Cannabis Global Inc. (OTCMKTS:MCTC), and Curaleaf Holdings Inc (OTCMKTS:CURLF).
Medical Marijuana Inc (OTCMKTS:MJNA) isn’t what we would consider a “prime investment pick” in this space. The company has remained on the pink sheets, offering up unaudited financials only for all of its tenure as a publicly traded stock (and we’re talking about years here), despite claiming tens of millions in revenues. In case you’re wondering, this is not remotely typical. As far as we can tell, MJNA is the only stock in the history of the world that fits this description. And it’s certainly not a reassuring idea. Why would you hide on the pink sheets and avoid producing audited financial reports if you are seeing such success?
To underscore this, the stock has done nothing but slide lower despite the company’s proclamations of ever-growing revenues. Smoke equals fire. We would simply be careful with any company that seems to overpromise and overhype, and then claim the opaque lack of transparency afforded to companies trading on the pink sheets. While we have seen a recent spike following news that Aurora bought out a CBD name (CBD is the main focus of MJNA), we would remain skeptical that the long history here of underperformance in MJNA is likely to change on a sustained basis anytime soon.
Medical Marijuana Inc (OTCMKTS:MJNA) bills itself as an investment holding company that operates in the medical marijuana and industrial hemp markets. Its products range from patented and proprietary based cannabinoid products to seed and stalk or isolated high value extracts manufactured and formulated for the pharmaceutical, nutraceutical, and cosmeceutical industries. The company licenses its proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal cannabinoid industry.
It engages in the research and development of cannabinoid-based pharmaceuticals; and marketing and distribution of cannabidiol hemp oil-based products. In addition, the company provides management support and services to cooperatives, collectives, health and wellness facilities, and medical clinics; and consulting and securities services to businesses and individuals in the legal cannabis industry.
It’s subsidiary, Kannaway, is a network sales and marketing company specializing in the sales and marketing of hemp-based botanical products. Kannaway currently hosts weekly online sales meetings and conferences across the United States, offering unique insight and opportunity to sales professionals who are desirous of becoming successful leaders in the sale and marketing of hemp-based botanical products.
MJNA has been acting well over recent days, up something like 30% in that time. Shares of the stock have powered higher over the past month, rallying roughly 75% in that time on strong overall action.
Medical Marijuana Inc (OTCMKTS:MJNA) managed to rope in revenues totaling $16.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -4.2%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($6.2M against $11M, respectively).
Cresco Labs Inc (OTCMKTS:CRLBF) continues to act like a new leader in the making, with an expanding footprint in terms of market density and geographic range.
Moreover, this is a company very much tied to the process of gradual legalization in the US marketplace, with a widely known brand and a growing scale in terms of distribution relationships.
Cresco Labs Inc (OTCMKTS:CRLBF) trumpets itself as a company that manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products.
The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand. In addition, it operators a Hope Heal Health dispensary in Fall River, Bristol County, Massachusetts.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. CRLBF shares have been moving higher over the past week overall, pushing about 8% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 24% in that time on strong overall action.
Cresco Labs Inc (OTCMKTS:CRLBF) generated sales of $54.6M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 14.2% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($70.2M against $194.7M, respectively).
MCTC Holdings Inc (OTCMKTS:MCTC), now doing business as Cannabis Global, Inc. (MCTC), has started to emerge as a new focus point for cannabis stock traders in the past few weeks. The company has been an IP leader, with a number of major patents related primarily to infusion technology for CBD, THC, CBG, and THC-V in the works. It’s rare to see substantive IP as a factor in the pot stock space – most of these names are basically commodity plays – but MCTC appears to be the genuine item on that note.
To help reinforce that idea, the company just announced it has completed product development and has begun distribution of its unique tetrahydrocannabivarin (THC-V) coffee and tea products to product beta testers. This comes on the heels of news that the company has been approved as an Amazon.com platform seller for its Hemp You Can Feel branded line of CBD products.
According to the release, “Cannabis Global has integrated three internally developed technologies into the unique manufacturing process for the industry’s first THC-V beverages. The first of these is the process developed by the Company to produce 70%+ loaded THC-V, controlled release, nanoparticles utilizing laboratory-based, pharmaceutical-grade production equipment. The Company is also utilizing both its internally developed powerization and one step dosing system, ensuring precise dosing and significantly faster production. The Company has filed provisional patents on all three technologies.”
As noted, Cannabis Global (OTCMKTS:MCTC) has recently filed six patents on cannabinoid extraction technologies and delivery systems. Management is currently working with patent counsel to protect various other technologies it has developed or is currently developing, including its programs pertaining to cannabinoid glycosides, polymeric cannabinoid nanoparticles and nanofibers, and its hemp extract-based alcohol replacement technologies.
“Our unique infusion and production technologies provide Cannabis Global with a product purity advantage as well as a clear path to low cost leadership,” commented CEO Arman Tabatabaei. “The THC-V cannabinoids are synthesized and entirely free of impurities. While there were some upfront technology development and intellectual property protection costs, we expect our ongoing variable production costs to be less than half of any potential competitor. Via our technologies, we turn one of the cannabis industry’s most expensive items – pure THC-V cannabinoids – into a cost-effective solution that sets a new standard for product purity in the cannabinoid-based products marketplace.”
MCTC Holdings Inc (OTCMKTS:MCTC) had no reported sales in its last quarterly financial data. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($157K against $1.5M, respectively).
Curaleaf Holdings Inc (OTCMKTS:CURLF) shares have been moving steadily higher as the company continues to expand and solidify itself as one of the primary leaders in the space, particularly in the US market.
CURLF shares pushed above their key 200-day simple moving average line two weeks ago, and have held up above that key technical marker on a closing basis since, with two critical tests, both passed nicely thus far. At this point, all of the stock’s major MA’s are curving into a bullish posture on a long-term basis.
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.
Shares of the stock have powered higher over the past month, rallying roughly 26% in that time on strong overall action.
Curaleaf Holdings Inc (OTCMKTS:CURLF) generated sales of $129.8M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 30.3% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($251M against $177.1M).