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Curaleaf: Tough Quarter, But Help Is On The Way

Update - Dec. 19

The market remains absurd at the lows. $CURLF and other $MSOS weren't priced for the SAFE approval and don't even need the bill. People selling don't know what they are doing.

-A long-shot attempt by lawmakers to get the SAFE Banking Act passed by including it in the omnibus spending bill has failed, Marijuana Moment reported.

-Most of the major multi-state operators fell by double digits late in Monday's trading session when the news broke.

-While the legislation could still pass as a stand-alone bill in the lame duck session, with only a couple of weeks until the new Congress is sworn in, that prospect is highly unlikely.

-There is hope that the legislation will have legs in 2023. Rep. Patrick McHenry (R-N.C.), the incoming chair of the House Committee, recently told Punchbowl News that while he is opposed to the legislation, he has "pledged to have an open process" in discussing it.

Update - Dec. 16

Schumer continues working on SAFE+ approval, but it still appears a matter of when, not if. The market is so far off base with the cannabis stocks it's almost comical.

-Senate Majority Leader Chuck Schumer (D-N.Y.) has taken what is likely the last effort to get the SAFE Banking Act passed during the current legislative session by working with Republicans to get it tucked into the omnibus spending bill.

-Schumer has made changes to the legislation to address concerns from some Republican lawmakers, Politico reported.

-The website also said that Schumer will spend Friday through the weekend pushing for SAFE's inclusion with House and Senate leaders in discussions on the spending bill.

-Schumer's efforts are likely to be a tall order considering that Senate Minority Leader Mitch McConnell (R-Ky.) blocked a prior attempt to include the marijuana banking legislation in a defense bill.

Originally published on Nov. 9 

  • Curaleaf reported Q3'22 revenues grew 7% to reach $340 million.
  • The MSO recently closed the Tryke deal and opened a third store in New Jersey to provide near-term growth drivers.
  • Management is confident about the SAFE Plus Act passing after years of no federal progress.
  • The stock is cheap at 8x normalized EBITDA targets, especially with a major catalyst ahead.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 

Most investors know the US cannabis market has been tough this year due to tough regulations and inflationary pressures hurting consumer spending on discretionary items. Curaleaf Holdings (OTCPK:CURLF) continues to feel the pressure, but the stock isn't accurately priced for the growth opportunity ahead. My investment thesis remains ultra Bullish on the large MSO (multi-state operator) trading at a cheap valuation heading into some potential regulatory changes.

Read the full article on Seeking Alpha. 

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


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