Ascend Wellness: Undiscovered Cannabis MSO

 

  • Ascend Wellness remains an undiscovered cannabis MSO with very few followers on financial websites.
  • The company has an attractive set of licenses including a deal to acquire the MedMen license in New York.
  • The stock only trades at 8x '22 EBITDA targets despite estimates for revenues to double next year.
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The cannabis space is now full of 2nd tier MSOs (multi-state operators) ripe for acquisition targets. Another example is Ascend Wellness Holdings (OTCQX:AAWH) that went public quietly back earlier this year. My investment thesis is very Bullish on the stock, but more proven opportunities exist in the U.S. cannabis market.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - Oct. 6

Good news for the NY license.

-Meeting for the first time today, New York's Cannabis Control Board expanded medical marijuana products to include whole flower, effective immediately, Bloomberg reports.
-Previously, only extracted products were permitted.
-The board also made a change that allows any medical professional who can prescribe a controlled substance can also prescribe medical cannabis.
-Another change is that eligible medical marijuana patients can now have a 60-day supply of product. Before, the limit was 30 days.

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