Breaking Down Weed Stocks Financials | Midas Letter RAW ft FAF
This week a host of cannabis companies report their financial results for their last quarter’s end. Trulieve Cannabis Corp (CNSX:TRUL, OTCMKTS:TCNNF), Curaleaf Holdings Inc (CNSX:CURA, OTCMKTS:CURLF), Green Thumb Industries Inc (CNSX:GTII, OTCMKTS:GTBIF), and Canopy Growth Corp (TSE:WEED, NASDAQ:CGC) were all among the reporters. For the most part, earnings have been strong, and some are setting record revenue growth. This week on Midas Letter RAW, we examine the cannabis industry and break down some things to look out for on weed stocks financial statements.
It is important to perform thorough due diligence when looking at reported earnings, as there are accounting tricks companies can use to bolster their financial press releases. For example, biological assets appreciation or warrant derivative liabilities depreciation should not be confused with net income.
Weed Stocks have been pulling back in price generally since the peak in February. However, recently, we see some of the premier cannabis companies now bounce off of their lows.
The US cannabis market is certainly the place to look if you are investing in the green rush as Canadian companies are struggling by comparison.
Fire & Flower has seen a bit of consolidation since we last chatted but continues to grow its corporate-owned stores, memberships, partnerships, and revenues. In June, FAF reported its fourth straight quarter of positive adjusted EBITDA with a 91% YoY quarterly revenue growth. In addition, FAF now has partnerships with American Acres & BDSA, which is driving its entry into the US. But, don’t forget about FAF’s partnerships with Alimentation Couche-Tard also put FAF’s products in hundreds of Circle K gas stations across Canada.
Watch the full show where we also discuss macroeconomic themes like PPI, CPI, and runaway inflation, as well as technical analysis of bitcoin, copper, and our favourite stocks.
00:37 – Friday the 13th / Superstitions
01:02 – Producers price index (PPI)
02:58 – Oil
03:34 – Democracy
04:50 – Runaway inflation
08:49 – US 10-year rate
09:15 – Water commodity
10:17 – Consumer price Index (CPI)
11:40 – What is the Producer price Index?
12:42 – **Fire & Flower CEO Trevor Fencott interview**
22:21 – FAF Chart
22:43 – Canadian cannabis industry
23:00 – Trulieve (TRUL) financials
24:05 – Creative accounting
25:50 – Trulieve financial statements
26:44 – TRUL chart
27:15 – Cannabis industry creative accounting
28:17 – Canadian government
30:02 – Fastest property price growth
31:00 – Population statistics
32:45 – Vaccination morality
36:50 – Bitcoin (BTC)
37:11 – $600M crypto heist
38:03 – Billionaires
39:06 – Graphene Manufacturing Group (GMG) chart
40:39 – Copper chart
41:15 – USCU chart
43:00 – VXTR chart