CURLF Stock: The Largest Marijuana Stock in the U.S. Seems Poised for a Breakout
Curaleaf Stock Skyrockets
Curaleaf Holdings Inc (OTCMKTS:CURLF, CNSX:CURA), a major player in the U.S. marijuana market, has struck gold with its latest acquisition, sending CURLF stock surging.
Curaleaf stock, when all was said and done, went up nearly 20% in the span of a few days following the company’s purchase of Grassroots for $875.0 million in a cash-and-stock deal. (Source: “Cannabis Canada: How a U.S. company suddenly became the biggest pot firm in the world,” BNN Bloomberg, July 17, 2019.)
Chart courtesy of StockCharts.com
This may very well propel Curaleaf Holdings to the top of the marijuana business size-wise as it spreads across a massive portion of the United States.
Considering just how frothy the U.S. marijuana market is, being among the largest available stocks right now makes CURLF stock a prime target for investment. In fact, according to the company’s press release following the acquisition, Curaleaf is now the largest marijuana company in the world by revenue.
And it’s not hard to see how Curaleaf Holdings has been generating all that revenue. The company will be active in 19 U.S. states and grow the number of its dispensaries to 68 nationwide once it fully integrates Grassroots. The acquisition will also increase the company’s pro-forma 2019 revenue to $256.0 million.
This comes on the heels of the company’s announced intentions to look into the European market in the near future.
All things considered, the Grassroots acquisition makes Curaleaf an undeniable powerhouse in the pot industry. Curaleaf stock, as a result, is in a very enviable position.
Curaleaf Holdings Inc is now among the largest marijuana companies in the U.S. and it’s continuing to expand. It’s also one of the few publicly traded pot companies that has access to huge swaths of the U.S. marijuana market.
As such, CURLF stock has the potential to be one of the best performers as legalization continues to spread.
On top of that, there are still events in the company’s future that could help spur stock price growth, like a move to the Nasdaq or New York Stock Exchange. This company is poised for success down the line and I’m very bullish on Curaleaf stock.
This also couldn’t come at a better time. With the recent shakeup at Canopy Growth Corp (NYSE:CGC), the marijuana industry may soon be in search of a new leader.
You see, Canopy Growth just jettisoned its CEO and co-founder Bruce Linton. Now, I’m not one to usually kick up too much of a fuss if a single individual is axed, even one as important (and in Linton’s case, recognized) as the CEO. But there’s more at play here than a simple reshuffling of the top brass at Canopy Growth: Linton’s departure reveals a whole new direction for CGC stock overall.
The company is going to be focusing more on profit than growth, something that a large stakeholder, Constellation Brands, Inc. (NYSE:STZ), has been pushing ever since it bought huge chunks of Canopy Growth Corp.
The flip side is that a company can often end up stunting its future potential if it focuses too strongly on profit too early in its lifespan. That may be happening to Canopy Growth right now. The marijuana industry is still so young that I believe it’s foolish to prioritize profit over growth; that’s a good way to end up with a decent or good stock rather than a truly outstanding one.
Which is where Curaleaf Holdings Inc comes in. With its acquisition of Grassroots and its promise to expand across the European market, this is a company that’s very keen on growing.
As such, additional big deals like the Grassroots acquisition are likely in Curaleaf’s future. And if these acquisitions are sound and properly handled, there is, as we say, a very “thirsty” market for them.
So CURFL stock may now be the de facto new leader in high-growth, high-powered marijuana stocks, a position formerly occupied by CGC stock.
The benefits of the company expanding are twofold: 1) huge potential for massive increases in share value and 2) the stability needed to weather downturns.
I believe that, in the near future, especially with pot being so close to federal legalization in the U.S. (we’re talking more than likely within five years), Curaleaf stock is in a prime position to double, triple, or even quadruple in price.
Analyst Take
The marijuana industry is now hungrily waiting for the U.S. pot market to go fully legal.
Until that time, a few companies like Curaleaf Holdings Inc provide investors the ability to get in the game early and see strong gains now, with the promise of exponential growth when total legalization arrives.
It’s a long-game mentality, but one that is likely to yield big payouts. With that in mind, CURLF stock is one of the better ways to play that long game while also seeing strong gains in the present.
