IB Net Payout Yields Model

Invest like me - only at Covestor.com

Trulieve: Don't Chase Cannabis Legalization Bumps

By -

Update - Dec. 12, 2025

As predicted, Trulieve Cannabis was a buy on dips. The stock is only back to the previous price with Trump now expected to sign an executive order on Monday.

-Cannabis stock extended premarket gains in regular trading on Friday after CNBC reported that President Donald Trump is expected to sign his much-anticipated executive order to reclassify marijuana as a less dangerous drug as early as Monday.
-The president is actively drafting an executive order on rescheduling to be released on Monday, according to the report, which cited a source familiar with the matter.



Original article posted on Oct. 1

  • Trulieve Cannabis remains deeply undervalued despite recent rallies driven by political statements supporting CBD and potential cannabis reform.
  • The MSO faces significant tax overhang due to 280E but maintains strong operating cash flow and minimal capital requirements, with $401 million in cash.
  • Trulieve is positioned for growth with catalysts like Florida adult-use legalization, new store openings, and potential federal regulatory changes.
  • TCNNF stock is cheap at only 3x adj. EBITDA targets, but I recommend buying on weakness rather than chasing rallies, given ongoing legislative uncertainty and risk of pullbacks.
As with other cannabis stocks, Trulieve Cannabis Corp. (TCNNF) soared on a social media post from President Trump supporting CBD. The problem facing the multi-state operator (MSO) is that government officials have made a lot of positive statements about legalizing cannabis without any official moves. My investment thesis remains Bullish on the stock due to the deep valuation, but investors should be careful chasing the MSO after this big rally.



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

Comments

Post a Comment

Popular posts from this blog

Stat of the Day: VXO hits 45 again

By -
Not hardly a week removed from hitting 45 on 9/18/08 and the market is back to this extreme level. Usually hitting the 40 level has historically been a huge buy signal for at least the next 4-6 months. Below are the times that 40 has been hit and only 2 times did it exceed 45 in the prior 20+ years until this month. Guess time will tell if this one leads to a huge rally. Date High 10/19/1987 152.48 8/24/1990 40.01 10/27/1997 40.04 8/27/1998 41.46 4/14/2000 41.53 3/22/2001 41.99 9/17/2001 47.7 7/11/2002 41.64 9/18/2008 45.81
Read more

Nextdoor: Next Step Up

By -
Image
Update - Feb. 28, 2025 Nextdoor reported another strong quarter.  Q4 Revenue of $65.23M (+17.4% Y/Y)  beats by $2.11M . Adjusted EBITDA was $3.0 million, compared to a $14.0 million loss in the year-ago period, reflecting 30 percentage points of year-over-year margin improvement. The social media company guided to weak Q1 results due to going full speed ahead with the NEXT UI updates. This is great news for  investors, but the stock is down some 30% due to the markets short-term focus.  The stock trades at near cash value of $427 million.  Originally posted on Nov. 8 Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » Nextdoor has achieved a significant turnaround under the return of founding CEO Nirav Tolia, with 17% revenue growth and record WAUs. The company nearly eliminated losses, reporting a Q3 adjusted EBITDA loss of just $1 million, and expects to be cas...
Read more

Hims & Hers Health: The Market Is Likely Wrong

By -
Image
Updated - Feb. 21, 2025 Hims & Hers Health isn't reliant on GLP-1 shortages. Not sure why news reports keep making this false claim, but the stock is down 20% today on the FDA ending the semagultide shortage status.  -The U.S. FDA announced Friday that it would refrain from penalizing makers of compounded versions of Novo Nordisk’s (NVO) weight loss/obesity drugs for two more months as supply conditions for the GLP-1s improve after an official end to their shortage. -Earlier in the day, the agency declared that the nationwide shortage of the highly popular GLP-1s, collectively known as semaglutide, is resolved after nearly three years. -“The FDA confirmed with the drug’s manufacturer that their stated product availability and manufacturing capacity can meet the present and projected national demand,” the regulator said. -Hims & Hers (NYSE:HIMS), which made compounded versions of semaglutide amid the shortage, lost billions of dollars in market cap in reaction as the telehea...
Read more