My #1 Cannabis Stock for 2021

Inside of Cannabis Dispensary

The northeast region of the United States is on the verge of a cannabis revolution. The shot across the bow happened on November 3, when New Jersey voted to legalize recreational cannabis.

This groundbreaking victory triggered a quick response from New York.

New York Governor Andrew Cuomo just said he wants to follow New Jersey and legalize cannabis as soon as possible to make up for COVID-related tax losses. The early word is that New York intends to legalize by April, setting the stage for sales to begin in 2022 or even sooner. New Jersey and New York will likely grow into the two largest cannabis markets in the Northeast. However, they will not be alone.

These highly-populated states will be joined by surrounding states that have either legalized or soon plan to.

  • Massachusetts legalized cannabis back in 2018, and the market is thriving. According to recent data from the state, annual sales are on pace to break $700 million in 2020.
  • Pennsylvania Governor Tom Wolf recently said that he wants the state to go legal as soon as possible to make up for lost tax revenue.
  • Vermont Governor Phil Scott just announced he would recognize legislation from 2016 that legalized recreational cannabis in the state. Sales could begin in 2022.
  • After legalizing in 2016, Maine recently began selling recreational cannabis, with first-day sales coming in at $250,000.

As you can see, the Northeast is in the very early stages of a cannabis revolution, and cannabis sales should surge for the next few years.

This is creating a rare investment opportunity.

I am going to reveal an early industry leader that is in position to capitalize. On top of that, it’s my favorite stock for 2021.

This company:

  • is one of the largest cannabis companies in the world.
  • operates in 23 states with a concentration in the Northeast.
  • owns and operates 96 cannabis dispensaries.
  • just reported record quarterly sales of $195 million

This Stock Could Be a Cannabis Standout in 2021

Curaleaf Holdings (CSE: CURL, OTC: CURLF) is the largest cannabis company in the U.S., with a market value of $5 billion. Headquartered in Wakefield, Massachusetts, Curaleaf owns one of the best cannabis portfolios in the industry. That includes operations in 23 states, 135 dispensary licenses, 88 operating dispensaries, 30 processing facilities, 22 cultivation facilitates, and more than 1.6 million square feet of cultivation capacity.

While Curaleaf is a broad play on the U.S. cannabis industry, the company is heavily focused on the Northeast cannabis market, with a heavy presence in Massachusetts, Pennsylvania, Connecticut, New York, New Jersey, Maine, and Vermont.

Curaleaf’s strong and growing presence in the Northeast should drive huge revenue gains in the next two years.

In the meantime, Curaleaf is already crushing it. Curaleaf just reported third-quarter results that set a new quarterly sales record.

Other highlights include:

  • Revenue of $193.2 million which grew 164% year-over-year and 59% sequentially
  • Closed acquisition of Grassroots creating the world’s largest cannabis company (measured by revenue)
  • Launched into 3 new states, including Ohio, Illinois, Pennsylvania
  • Opened 2 new dispensaries in Florida, with 33 locations in the state
  • Completed acquisition of Alternative Therapies Group in Massachusetts

The Chart

Curaleaf shares have been on a roll for the last six months, jumping more than 250% from the COVID low in March.

Shares are consolidating near the all-time high. Looking forward, I expect Curaleaf to continue reporting big-time sales growth, and that should drive shares higher.

The Big Picture on the Northeast Cannabis Revolution and Curaleaf

The northeast region of the U.S. is in the early stages of a cannabis revolution, with a string of states set to legalize in the next 12-24 months.

Curaleaf is an early leader in the high-growth U.S. cannabis industry. The company is in position to cash in the next two years as the Northeast cannabis market explodes.

We just captured a 53% short-term move for this cannabis powerhouse in our model portfolio, but I see much more potential ahead for members and CURLF.

*Author Michael Vodicka owns shares of Curaleaf Holdings (CURLF).

Best,
Michael Vodicka
Editor, Cannabis Stock Trades


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.

Mr. Vodicka brings his expertise and guidance to the members of Cannabis Stock Trades.

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