Ayr Wellness is poised for substantial growth through 2022.
The small MSO will quickly rival the size of global cannabis stocks with market valuations in excess of $10 billion.
The stock trades at only 7.6x EV/2022 EBITDA target of $325 million.
This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
In a matter of months, Ayr Strategies (OTCQX:AYRWF) made a transformative deal in Florida and changed their name to Ayr Wellness. The U.S. multi-state operator ("MSO") now forecasts massive revenue and adjusted EBITDA targets in 2022 making the company a major player in the cannabis world. My investment thesis remains very bullish on the stock even after a 60% gain since the last article less than three months ago.
Aurora Cannabis was left out of the major deal making in 2018. The cannabis company updated FQ2 guidance to revenues of $50 to $55 million with a continued focus on pure production growth. The stock is down as the market is becoming less impressed with commodity farming operations due to the prime Oregon example. The stock is below key resistance at $5.40 as medical cannabis patient totals failed to impress. As the end of 2018 came and went, Aurora Cannabis ( ACB ) was a notable absentee from the deal making in the cannabis market. Just about all of the other major Canadian cannabis players got large investments or signed up powerful partnerships, but the related stocks didn't generally maintain rallies following the deals. Based on the early legalization data in Canada and Oregon, the best option for Aurora Cannabis might actually be selling production capacity while the Canadian market remains hot. Read the full article on Seeking Alpha. Disclosure: No
Skillz has fallen all the way to $9 after initially soaring to $46 on hype surrounding fast growth. The company hasn't proven that high spending on marketing leads to better long-term economics. The stock has a more appealing valuation of $4 billion, but Skillz remains a falling knife to avoid for now. Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street. Learn More » As with a lot of the original hot SPACs, Skillz ( SKLZ ) came out of the gate red hot based on massive revenue growth projections. Unfortunately, the market didn't fully research the factors driving those high growth rates. My investment thesis is far more Neutral on the stock now, but my view needs the company to improve user numbers before turning fully Bullish. Read the full article at Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. Update - Nov. 3 Skillz reports after the close with the stock jumping into ear
Pinterest reports a mixed picture for Q3'21 with MAUs again down 13 million sequentially. The stock is soaring AHs based on solid guidance and a return to user growth in January. The stock trades at ~6x sales targets making Pinterest appealing here with a return to user growth and a long path towards higher ARPUs. This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » Following the horrendous Q4'21 results from Meta Platforms ( FB ), the market was fearing the worst from Pinterest ( PINS ) heading into their quarterly report. The company didn't exactly wow investors with the quarterly numbers , but the stock is soaring on better than feared guidance. My investment thesis is more Bullish on Pinterest in the low-$30s following a 50% decline in the stock heading into earnings. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details.