In July, I shared my thinking about why cannabis stocks were primed to rally, pointing to booming product demand, more states legalizing in short order and the likelihood of a friendlier federal regulatory environment. Since then, the New Cannabis Ventures Global Cannabis Stock Index has rallied 13.5% to 34.40 from its July 10th close of 30.31.
A sub-sector delivering much stronger performance than the overall index has been the leading multi-state operators (MSOs). Here is the performance since then for the top 4 in terms of market cap, which includes Cresco Labs, Curaleaf Holdings, Green Thumb Industries and Trulieve:
Since the lows in March, the stocks are up 234-279%, far outpacing the index, which is up about 102% since March 18th.
Why are investors snapping up shares of these large operators? Quite simply, the growth prospects are extremely favorable, as I will discuss below, and the recent earnings reports reinforced this notion, with Curaleaf, GTI and Trulieve having already reported and Cresco set to report its Q2 on August 20th.
The post These American Cannabis Operators Are On Track For $1 Billion Annual Revenue Soon appeared first on L.A. Cannabis News.