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There's a "thing" about legal marijuana in the United States; it's something every investor needs to understand to really be in position to cash in.
People talk about the U.S. cannabis market, and in some ways it's helpful to think of it that way, but the thing is, America isn't one big cannabis market - it's dozens of big cannabis markets! Each market has its own unique terrain, its nuances and ins and outs, its winners and losers, and so on.
And it's the companies that can tap into and thrive in four, or nine, or 13 or more of those big markets that make the best investments. I'm talking about multi-state operators (MSOs) - cannabis businesses with licenses to operate in and across multiple states with legal cannabis.
That's critical because, right now, it's generally not possible to transport cannabis across state lines, even between two adjacent "adult use" states like, say, California and Nevada or New York and Massachusetts.
MSOs usually own cultivation operations, processors, and retail outlets - "seed to sale" in the markets in which they operate, and they're the gold standard when it comes to lucrative cannabis stocks right now.
Today, we're going to take another look at one of my very favorites right now - shares can be had for less than $4 today.
This company has had some ups and downs throughout 2021, but it's fast coming into one of the "ups." It just carved out a commanding position in a "quiet" $2 billion Northeast cannabis market.
At $4, this is certainly up at the higher end of your classic penny stocks, but this company probably won't stay there long...
Time to Revisit This Old Favorite
Last month, I heard from one of our longtime National Institute for Cannabis Investors members, who asked: "Is Jushi still a good investment?"
We've been talking about Jushi a lot this year; the stock has soared as high as 199% over the past year, and it's still up nearly 40% over the past 12 months.
I'll tell you what I told them: Jushi Holdings Inc. (OTC: JUSHF) is still a fantastic investment. And I made that same case to my subscribers last week, when I sat down for an interview with Jushi CEO Jim Cacioppo. I've arranged to share that NICI video with everyone here today.
Jim told us about Jushi's most recent acquisitions - acquisitions that I think go a long way in shoring up Jushi's position among the many markets of the United States.
Now, if you've been with me for a while, you'll know acquisition for acquisition's sake doesn't impress me. Way too often, companies in this space shell out big bucks to acquire a smaller company for questionable returns or a slim to negligible advantage. Far from being smart, that kind of outlay can send a company down the road to mediocrity, or worse, ruin. Canopy Growth Corp. (NASDAQ: CGC) is the (im)perfect example of that, burning through billions in cash with zilch to show for it.
Jushi's acquisitions, on the other hand, make perfect sense, both in the short and long term, and they help move the Florida-based MSO along from strength to strength. The company has just become fully, vertically integrated in Massachusetts with the purchase of Nature's Remedy. It gets two dispensaries, in Millbury and Tyngsborough, and a 50,000-square-foot cultivation and processing facility in Lakeville out of the deal.
That's what's written in ink on the paper, of course, but on street level, Jushi gets a commanding presence in the Bay State's $3.4 billion marijuana market. That's right, while no one (but NICI) was looking, cannabis in Massachusetts became a massive business expected to hit $3.4 billion in sales by year's end.
That's why MSOs have an unbeatable cannabis business model. Each and every time a multistate operator expands into a new state - a new market - it grows its profit potential exponentially - if, that is, the leadership team has the vision to execute. Jushi's bosses have proven over the past few years that they can do just that.
With the move into Massachusetts, Jushi now operates in eight huge, important American cannabis markets, including Pennsylvania, Illinois, Virginia, California, Nevada, Ohio, and New York.
But the bottom line here is Jushi's move into the Massachusetts cannabis market is a massive victory for the company, and that victory isn't reflected in JUSHF's $4 share price... yet. I'm afraid it won't be long before Wall Street figures out what's going on here.
Then again, the legal cannabis sector is packed with "under-the-radar" companies like this. I know one $10 company that grew revenue 12X between 2019 and 2020, and those revenues could potentially top $630 million by year's end. Put this on your radar now...