With legal cannabis markets opening in states across the U.S., you could believe that the stocks of organizations serving these markets would be sizzling hot suitable now. Some are, but other individuals are not.
Revolutionary Industrial Properties (NYSE:IIPR) is surely in the sizzling category. It ranked amongst the major 5 marijuana stocks in the initial half of the year. Regardless of providing up some of its gains in current weeks, Revolutionary Industrial Properties is nevertheless up by practically 130% so far in 2019. MedMen Enterprises (OTC:MMNFF), on the other hand, is squarely in the not-so-hot group. Its shares have dropped extra than 30% year to date.
Should really investors go with the momentum of Revolutionary Industrial Properties or choose MedMen as a rebound candidate? Here’s what you need to have to know about these two U.S.-primarily based marijuana stocks.
The case for MedMen
MedMen focuses on operating upscale cannabis shops. The business at present has 37 retail areas in California, Nevada, New York, Arizona, and Illinois. These shops create impressive income per square foot, even surpassing that of retail leaders such as Apple and Tiffany.
The business has lots of area for development. 1 path for development is by way of acquisitions. MedMen awaits finalization of its buy of healthcare cannabis dispensary chain PharmaCann. When the deal closes, the business will personal 92 retail licenses in 12 states.
MedMen also really should create strong development with its existing areas. The markets in the 5 states it is in now will just about absolutely expand drastically more than the subsequent handful of years. And as extra states legalize adult-use recreational marijuana and healthcare cannabis, MedMen will appear to jump into these new markets.
The business is positioned to develop in Canada as properly. MedMen and Cronos Group teamed up to launch retail shops all through the nation, despite the fact that the method is moving gradually, as many essential provinces have dragged their heels.
But what about the stock’s horrible functionality so far this year? A massive element of the trouble has been the dilution in the worth of current shares as the outcome of stock offerings to raise extra money. MedMen’s marketplace cap is essentially up 13% year to date although its share price tag has plunged.
Wall Street analysts believe that MedMen is destined for a sturdy rebound. The typical 1-year price tag target for the stock reflects a premium of extra than 200% above MedMen’s…
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