Finance

Trulieve is one of the safest stocks in cannabis

Trulieve Cannabis has established itself as one of the top cannabis producers in the U.S. market. Although it hasn't been looking to expand into as many different states as possible, it's been doing a great job at focusing on the Florida market. There, the company recently opened its 40th dispensary. The results have been paying off, as it's proving to be one of the better buys in the industry.

With cannabis stocks changing, the question of the safest stocks in cannabis can be a hot topic. There are some rules in the cannabis investing sector, also there are exceptions that confirm those rules.

In the cannabis industry, one of these exceptions is Trulieve Cannabis Corp, a Florida-based cannabis producer.

This exception could be a sign of a broader trend that will soon lose its exceptional status and become the new general rule.

Hemp.im is a mobile application that focuses exclusively on the cannabis industry. The app sheds light on the latest breaking news in the cannabis industry and tackles industry-reaching topics including cannabis stocks.

The safest stocks in cannabis investing

Most cannabis stocks lost a large part of their value in the second half of 2019. Indeed, the stock market performances of the big names in the sector have been disastrous.

Just look at the statistics from one year to the next: Canopy Growth Corp (TSX:WEED) -40%, Cronos Group Inc (NASDAQ:CRON) -47%, Aurora Cannabis Inc (TSX:ACB) -57%, Aphria (TSX:APHA) -10%, Tilray (NASDAQ:TLRY) -81%.

Trulieve Cannabis Corp (CSE: TRUL) is an exception to this rule. With a market capitalization of $1.93 billion, this vertically integrated medical cannabis producer has seen its share price increase by 60.73% so far in 2019.

The upward trajectory has actually accelerated over the past three months, as the company’s share price jumped from $7.88 on August 30 to $13.09 at the close yesterday, an increase of approximately 66%.

The search for other markets

Trulieve claimed to have 55% of the medical cannabis market in Florida, the third most popular state for cannabis in the United States.

The number of patients is increasing by about 10% per month and the state has about 40 clinics, with a plan to expand this network. It offers a wide range of cannabis products with nearly 300 references.

The company is also looking at other markets. It has obtained licenses to open clinics in Connecticut, California, and Massachusetts. Trulieve has grown slowly and steadily since 2015 and has avoided the enormous traps of rapid expansion that other major cannabis companies currently face.

Trulieve Cannabis Corp. seeks to open up to alternative markets in the United States. (Source)

Although it is traded on both the U.S. OTC markets and the Canadian stock exchange, Trulieve has limited its presence to a relatively smaller playing field, focused solely on the United States.

It is perhaps the trend that is emerging as the most successful path that will allow Trulieve to be considered one of the safest stocks in cannabis and one of the few big winners in the Cannabis industry in the short term.

Not all 2.0 products will be available for Christmas

Some, but not all, cannabis 2.0 products will be available for sale before Christmas in Canada. Auxly Cannabis Group Inc (TSXV: XLY) announced that its infused products will be available for retail sale starting Dec. 16.

In a press release issued by the Vancouver-based company, Auxly announced that it had entered into agreements with nine of the 10 Canadian provinces and that it would launch 83 derivative products, including soft drinks, chocolates, and others.

“This is an important milestone for us,” said Hugo Alves, Auxly’s CEO.

“Our team has been working on the launch of our derivatives portfolio for over 20 months and the extremely positive reactions to our brands and products carefully developed by provincial buyers,” he said.

“Consumer focus groups have been extremely satisfying and motivating for the entire Auxly family. It is a tremendous accomplishment to be ready to be marketed from day one, across the country. It reflects the talent and dedication of our employees and the importance we place on our company’s success in the 2.0 cannabis market.”

Canopy Growth is among the safest stocks in cannabis

While a smaller producer like Auxly is making good progress towards launching its 2.0 products, cannabis giant Canopy Growth has announced that it will not offer its 2.0 product line until January 2020. Canopy will start by marketing its cannabis chocolate and infused drinks.

The company expects to target a new consumer base through its next-generation products. Canopy feels the new products will be able to target a wider consumer base that prefers not to smoke cannabis but will try it in an edible or beverage form.

Its research has shown that 80% of non-cannabis users would be interested in trying a cannabis-based drink.

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(Featured image by CMDR Shane via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in Investing, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Isaac Atwood

Isaac Atwood is a PR and marketing consultant who has worked with respected names in the financial industry. He has also sat down in many sessions with startups aiming to become the next unicorn. Isaac loves working with CEOs, business executives, and entrepreneurs who wish to enter the following markets: artificial intelligence, cannabis, virtual reality, cryptocurrencies, robotics, wearable and smart tech, and even the much-hyped space race. He is currently managing the brand portfolio of an Asian firm planning for its IPO by the end of the year. While his engagements have taken him around the world, Isaac is proud to call Toronto his home.

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