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
Wolfpack Research released a short report on Skillz. The recently closed SPAC deal was irrationally priced in the stock market with the market cap soaring above $20 billion at the highs. The company must maintain 2021 revenue targets of $366 million despite the headwinds in mobile gaming. Investors must avoid this stock due to valuation and especially if Wolfpack Research is accurate on the upcoming revenue misses. This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » The upcoming Skillz ( SKLZ ) earnings report is important for not only the stock, but also the cooling SPAC space. A lot of the blank-check companies have made business combinations based on aggressive 2025+ revenue targets, yet very few of these companies have reported earnings since going public. The real-money gaming platform was already an extremely expensive stock before Wolfpack Research hit the stock with a report suggesting the revenue targets