Out Fox The $treet

  Trulieve Cannabis faces far more competition in Florida now than at the end of 2020. At least 3 or 4 stronger MSOs have entered the state to absorb a substantial amount of the growth in the state. The MSO faces risk that Q2 revenues will miss targets and the company will face margin pressure in Florida while expanding in other states with lower margins. The stock isn't expensive at a 3.3x forward EV/S multiple, but Trulieve isn't likely to rally in the face of any slowing organic growth. Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street.  Learn More » The U.S. cannabis space has been on a major growth trajectory over the last few years. While the MSO (multi-state operator) space has plenty of growth catalysts ahead, not every company has the same opportunity. My  investment thesis  is more Neutral on  Trulieve Cannabis  ( OTCQX:TCNNF ) as the MSO faces far stronger competition in Florida after a period of competing...

  Trulieve Cannabis agrees to buy Harvest Health for $2.1 billion. The combined company has the leading profitability position for 2021. The new Trulieve Cannabis still trades at a discount to MSO peers, but the company won't be the largest cannabis company by revenues in 2022. The stock remains a bargain, but Trulieve is likely to trade at a discount as the single state focus remains. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » In a somewhat surprising move,  Trulieve Cannabis  ( OTCQX:TCNNF ) agreed to acquire struggling multi-state operator (MSO)  Harvest Health & Recreation  ( OTCQX:HRVSF ) in a  giant deal  in the cannabis space. The combined company will now compete for the largest cannabis company in the world title. My  investment thesis  remains bullish on the leading MSOs, as those companies consolidate the largest cannabis market in the world befor...