How Are Cannabis Industry Titans Driving Profits As Consumer Spending Falls?
Portfolio Pulse from Maureen Meehan
Canaccord Genuity's 7th Annual Cannabis Conference in New York featured presentations from top cannabis companies, including 4Front Ventures, Ascend Wellness, Tilray, Trulieve, Verano Holdings, Sundial, and TerrAscend. Key themes included core operations, free cash flow targets, consumer spending, balance sheets, and federal legalization.
May 23, 2023 | 9:36 pm
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Ascending
NEUTRAL IMPACT
Trulieve CEO Kim Rivers expressed concerns about the impact of ramping up its Jefferson County cultivation facility on margins and consumer purchasing behavior in the current inflationary environment but sounded optimistic about the potential market impact of Florida approving an adult-use program in 2024.
While concerns about margins and consumer purchasing behavior could negatively impact the stock price, optimism about Florida's potential adult-use program could balance it out, resulting in a neutral short-term impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Ascend Wellness CFO Daniel Neville discussed the company's impressive footprint across seven states, 31 operating dispensaries, 245,000 square feet of canopy, and 22% YoY revenue growth.
Ascend Wellness's strong presence and revenue growth could attract more investors, potentially leading to a positive short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
4Front Ventures CFO Andrew Thut highlighted the company's low-cost production model, which has led to a leading brand market share in Washington.
The low-cost production model allows 4Front Ventures to maintain a competitive edge in the market, which could lead to increased investor interest and a positive short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Sundial CEO Zach George discussed the company's operating segments and investment portfolio, which has deployed over C$500 million of capital to various investment vehicles, including exposure to several US MSOs.
Sundial's diversified investment portfolio and exposure to US MSOs could attract more investors, potentially leading to a positive short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Tilray CFO Carl Merton discussed the company's recent acquisitions of HEXO and Montauk Brewing Company, which expanded its US beverage/alcohol portfolio and presence, potentially serving as an entrance point for the cannabis ecosystem upon federal legalization.
Tilray's recent acquisitions could position the company for growth in the US market upon federal legalization, potentially leading to a positive short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
TerrAscend's Jason Wild discussed the company's focus on New Jersey's adult-use program and its recent decision to apply for its shares to be listed on the Toronto Stock Exchange (TSX) while undergoing an internal reorganization.
TerrAscend's focus on New Jersey's adult-use program and potential TSX listing could attract more investors, potentially leading to a positive short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Verano Holdings CIO Aaron Miles discussed the company's shift from preserving and generating healthy cash flows to safeguarding profitability and its early successes in New Jersey's adult-use market.
Verano Holdings' shift in focus and early success in New Jersey's adult-use market could attract more investors, potentially leading to a positive short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80