Trulieve Cannabis Corp: Up 65% Since October, With Room to Run

Trulieve Cannabis Corp Stock Up 65% Since October, Remains BullishTrulieve Cannabis Corp Builds on Gains From Record Q3

Trulieve Cannabis Corp (OTCMKTS:TCNNF, CNSX:TRUL) has been on a market-trouncing tear since the start of October, soaring 65%.

Why? Over the last two months, Trulieve reported another record quarter of double-digit revenue growth and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA).

The company also opened four new dispensaries in Florida, bringing its total in the Sunshine State to a record 40 locations.

Some investors might believe that a 65% gain for TCNNF stock in two months is just too much, and that the company is bound to slow down.

Not necessarily. Trulieve stock’s strong growth trajectory should continue into 2020. And not just because of a potential “Santa Claus rally” or “January Effect” in the stock market.

Trulieve Cannabis Corp is a well-run pot company that is dominating the Florida medical marijuana market with plans to expand outside the state.

TCNNF Stock Overview

Trulieve is the largest medical marijuana company in Florida. The seed-to-sale company sells more than 260 products from its dispensaries throughout the state. It also reaches customers through its home delivery service. (Source: “Overview,” Trulieve Cannabis Corp, last accessed December 5, 2019.)

The Quincy, Florida-based company recently opened its latest dispensary in Lakeland, making it the first pot company in Florida to reach 40 locations. What’s really incredible is that Trulieve only operated two stores at the end of 2016.(Source: “Trulieve to Host Grand Celebration in Honor of Record 40th Florida Dispensary,” Cision, November 25, 2019.)

It expects to open more locations in 2019 and 2020.

The company needs to open more dispensaries to appease its rapidly growing customer base. It currently operates about 20% of the marijuana dispensaries in Florida but is responsible for about half of all medical marijuana sales in the state. (Source: “Weekly Update,” Office of Medical Marijuana Use,  November 29, 2019.)

Trulieve is hoping to replicate that success in other states, including California, Massachusetts, and Connecticut. It is also looking to enter two additional states by the end of 2019.

Trulieve Stock Information

Market Cap $1.5 Billion
52-Week Change 54.1%
52-Week High $16.23
52-Week Low $6.68
Shares Outstanding 35.8 Million
Float 32.8 Million
50-Day Moving Average $11.04
200-Day Moving Average $10.17

(Source: “Trulieve Cannabis Corp. (TCNNF),” Yahoo! Finance, last accessed December 5, 2019.)

Record Q3 Revenue & Adjusted EBITDA

In November, Trulieve announced that its revenue in the third quarter ended September 30 advanced 22% sequentially and 150% year-over-year to a record $70.7 million. (Source: “Trulieve Announces Another Record Quarter of Double-Digit Growth in Revenue and Adjusted EBITDA,” Trulieve Cannabis Corp, November 18, 2019.)

Adjusted EBITDA was a record $36.9 million, up 17% sequentially and up 122% year-over-year.

Also during the third quarter, Trulieve opened six new dispensaries in Florida, bringing its total to 35 at the time. The company also increased its patient count in Florida by 19% year-over-year to 214,827.

Analyst Take

There is no mystery to Trulieve Cannabis Corp’s success. It’s the first and leading medical marijuana company in Florida, operating a record number of dispensaries and providing its customers with the widest array of products.

The company is also expanding its footprint outside of Florida, with the goal of becoming one of the top-performing pot businesses in North America.

Considering all that, TCNNF stock is definitely one weed stock to watch in 2020.