A “Green Wave” is sweeping across North America. In November, voters in four states cast their ballots to legalize recreational marijuana, which will open up new cannabis markets in Arizona, Montana, New Jersey, and South Dakota. The North American legal marijuana market will likely reach $19.1 billion by next year and then grow at double-digit percentages annually…
There are certain pot stocks that are best-positioned to capitalize on the current cannabis craze. Here’s why Aphria (NASDAQ:APHA)(TSX:APHA), Trulieve Cannabis (OTC:TCNNF), and Acreage Holdings (OTC:ACRGF) are the best pot stocks to buy this December and hold for a long time.
Today, investors can buy Canada’s No. 1 pot producer stock for a very low price. There is no doubt that the shares are undervalued, trading at 5.4 times sales and 1.8 times book value.
During the first quarter of 2021 (ended Aug. 31), Aphria grew its revenue to CA$145.7 million from CA$126.1 million in last year’s quarter. Simultaneously, the company increased its operating income year over year by more than five-fold to CA$20.7 million.
Aside from taking on the lead in the Canadian market, Aphria is also dominating in international markets. Its German subsidiary, CC Pharma, accounts for over half of its overall net sales and has access to over 13,000 drug stores in the country to sell imported medical cannabis.
Another key aspect of Aphria’s expansion plan lies in the U.S. Last month, the company announced plans to acquire beer maker SweetWater Brewing for $300 million in cash and stock. The acquisition can help Aphria in building its own brand of cannabis-infused craft beer and other beverages in the U.S. Last year, SweetWater grew its annual beer production volume by 7% to 261,000 barrels, more than twice the competing craft brewers’ growth rates. With $66.6 million in revenue and a non-cash operating income (EBITDA) of $22.1 million in the last month, SweetWater is a fantastic addition to Aphria.
Overall, investors who are looking for solid marijuana companies that can expand their footprints globally should definitely consider giving Aphria a shot.
Founded in 2015, Trulieve became profitable after just two years of operation and now holds a 52% market share in the Florida medical cannabis industry. The company also operates 72 dispensaries across six states. Each of its locations generates an average of…
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