On February 28, I introduced you to Trulieve Cannabis (OTC: TCNNF) with a Trade of the Day, titled “This Small Cannabis Company Made $32 Million in Nine Months.”
I wrote…
If you want to buy a cannabis stock with the right mix of explosive upside and legitimacy, then don’t miss this one.
As a quick refresher, the company offers a suite of Trulieve-branded products, including nasal sprays, capsules, concentrates, syringes, cannabis flowers, topical creams, tinctures and vape cartridges. As of today, it operates 39 dispensaries in Florida. The company also takes orders online and by phone.
Back in February, I didn’t mince my words…
Here’s why it’s a winner. In the first nine months of 2018, Trulieve made a profit of $32 million. Yes, it is one of the few cannabis companies operating in the black (or I should say… “operating in the green” – sorry, I couldn’t help it). As you know, early investors are always looking for a perfect balance between major upside speculation and an element of safety. In most cases, these two characteristics aren’t found together. With Trulieve Cannabis, this is the closest you’ll come to having both of these rare metrics working for you.
I reiterated this view on September 25, when we welcomed The Oxford Club’s Chief Trends Strategist and cannabis expert Matthew Carr to The War Room for a live, real-time discussion.
Here is part of our exchange…
Bryan: Here’s my last question. Trulieve Cannabis is a stock that I’ve bought and sold a few times – each time with success. Great exposure to Florida. The company is profitable. Thoughts on this one? Should I buy back in?
Matthew: Trulieve is an investment in the Florida medical market that’s going to be worth more than $1 billion next year. And the company has 33 dispensaries open in the state. Like all MSOs, it’s been hammered since April. But you’re looking at 100%-plus growth over the next several quarters: $66.5 million and $73.5 million over the next two quarters and nearly $390 million in revenue next year.
Bryan: Yea, I tend to agree. It’s a $10 to $14 stock, in my view.
Fast-forward to today…
As I’m sure you know, the entire cannabis sector has gotten slaughtered lately.
Most of the biggest names (Tilray, Aurora Cannabis and Canopy Growth Corp.) are setting new 52-week lows.
However, Trulieve Cannabis is the one name that’s held up.
And today, the company showed us why.
You see, after yesterday’s close, Trulieve Cannabis reported a net income of $60.3 million, which came to $0.55 per share. This is a dramatic improvement from the $17.5 million ($0.18 per share) the company reported one year ago. This is a good reason Trulieve Cannabis stock has gained 40% this year – while every other company within the sector has been avalanching lower.
Action Plan: I’ve said it before – and I’ll say it again. If you want exposure to the cannabis sector – in a way that balances growth with an element of safety – then the one and only pot stock you need is Trulieve Cannabis. Unlike most of its peers, the company is profitable.
And, as you can see from today’s earnings, Trulieve Cannabis is still rapidly growing. That combination is rare in this sector, which is why I believe it’s the only cannabis stock worth owning. To learn more about profitable stocks, join me in The War Room today!
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