Any investor looking to strengthen a portfolio can count on these cannabis alternatives
The first half of September is approaching and there are still some great opportunities for cannabis investors. While inflation and fluctuating economics create a difficult climate in the markets there are some companies in the cannabis sector that remain obvious choices for a solid bet amidst all the turmoil. Experts say the industry could start to see positive times ahead, especially as more pro-reform legislative changes continue to take place in many parts of the country.
Curaleaf is undoubtedly a leader in the cannabis industry that continues to do well. The company has an extensive portfolio of more than 100 retail dispensaries, 22 cultivation sites and 30 processing facilities in 23 states. This has led it to be a reputable multi-state operator across the country.
Analysts indicate that this firm has taken an aggressive stance toward growth and M&A, and has preferred access to capital to fund emerging opportunities. It is possible that its exposure in Europe now that there is talk of legalization in Germany, could attract strong investor interest in a riskier environment.
On the other side is Green Thumb Industries, a big hit in the US cannabis scene. The Bay State-based company has a number of defensive qualities ranging from cash flow generation to historically prudent capital allocation and preferential access to capital.
However, it doesn’t just stop there, as the company also offers offensive characteristics with exposure to nearly all key catalyst markets such as Maryland, New York, New Jersey and others. Green Thumb’s balance sheet and earnings quality are outstanding, supported by moderate leverage, a strong liquidity position, and leading cash flow conversion.