Florida continues to be one of the fastest-growing cannabis markets in the US. That trend has been on full display during COVID-19, with Florida seeing a huge spike in medical cannabis sales while other industries are crumbling.
Today I am going to explain why I think Florida’s legal cannabis industry will see explosive growth in the next two years. I will also reveal a promising young cannabis stock that investors could use to cash in on this exciting market.
Florida Medical Cannabis Sales Hit New All-Time High
While many US industries are melting down, the Florida cannabis market is one fire.
According to recent data, medical cannabis sales have surged in the last two months, driving sales to an all-time high.
Here is some more information from Miami New Times.
Last week, medical marijuana sales in Florida increased by almost 40 percent over the previous week. The Florida Department of Health says 2,274 pounds sold from March 13 to 19, when schools and stores began shutting down nationwide. That is the most sold since the state’s medical marijuana program began in 2017.
The same pattern is seen across the country. From March 13 to March 16, cannabis sales shot up 28 percent compared to the previous week, according to a report by BDS Analytics, a Colorado-based market research firm for the global cannabinoid industry.
Here’s a link to the full article if anyone wants to take a look.
This is great news for cannabis investors. The cannabis industry is looking immune to economic weakness and huge changes in consumer spending. In fact, what this data tells us is that when Americans are stressed out, they like to load up on cannabis to help them cope.
The good news is creating a great investment opportunity, and I think this early industry leader is set for big-time growth over the next two years.
Liberty Health Is a Direct Play on Florida’s Medical Market
I see three promising, young companies currently dominating the Florida medical cannabis market.
- Trulieve Cannabis Corp (TRUL)
- Curaleaf Holdings, Inc. (CURA)
- Liberty Health Sciences Inc. (LHSIF)
All three of these companies look promising. However, Liberty Health Sciences is the best way to target Florida for a simple reason – it is the only company from the list that operates exclusively in the state of Florida.
Liberty Health Sciences (OTC: LHSIF) is a direct play on Florida’s high-growth medical cannabis market.
Headquartered in Gainesville, Liberty owns an impressive portfolio of cannabis assets. Those assets include 23 cannabis dispensaries and more than 300,000 square feet of cultivation and production capacity.
This makes LHSIF the third-largest medical cannabis company in Florida. And with Florida’s medical cannabis sales booming, Liberty has been reporting incredible revenue growth.
Liberty reported third-quarter results in late January, touting revenue growth of more than 400% from the same period last year. Take a look at the income statement from the earnings report below.
These results demonstrate that Liberty is executing its business plan and capturing new market share in Florida.
And looking forward, I see plenty of revenue growth ahead.
In the short run, Liberty will continue to expand its presence in Florida with new dispensaries and additional cultivation and processing capacity.
In the long run, there is another enormous opportunity right in front of Liberty.
Florida has growing support to legalize recreational cannabis. It’s possible that legalization will be on the ballot this year.
If it happens, Florida is projected to be one of the largest legal cannabis markets in the world.
Cannabis market research firm, New Frontier Data, predicts that Florida would capture 12% of the $30 billion US market by 2025. That would create an amazing opportunity for Liberty to pursue a huge new market.
Liberty Shares are Trading 60% Below the 52-Week High
Liberty shares were weak with the broader cannabis sector in 2019. Shares were recovering nicely in early 2020, but Liberty fell sharply along with the broader stock market.
More recently, Liberty has been showing early signals of a major rebound.
The Big Picture on Florida and Liberty
Florida’s medical cannabis market is on fire and Liberty is cashing in.
The company is reporting incredible revenue growth and is positioned to capitalize if Florida legalizes recreational cannabis too.
Despite the good news, Liberty is trading at a sharp discount to the 52-week high. This looks like a rare opportunity to capitalize on a huge dip in shares while revenue is surging.
About the Author & Cannabis Stock Trades
Michael Vodicka is an equity analyst with more than 20 years of experience trading and investing. His research has been featured in some of the industry’s most respected publications. He has been investing and leading investors in the cannabis sector since 2013.