Despite the excitement surrounding both the recreational and medical markets in 2018, the marijuana industry has taken a massive hit. This week, Canopy Growth (NYSE:CGC), the dominant producer of the marijuana company, reported a huge quarter and a jump in sales. Despite the optimism, however, the stock is down over 25% over the last month.
The U.S. Marijuana stock market has been dropping steadily since the election of Donald Trump. Many of the cannabis stocks hold onto hope that some sort of legalization may happen, while some of them simply give up and wait for the storm to pass.
The cannabis industry has been growing quickly over the last few years, but so has competition. As the market expands, so do the opportunities for investors who want to jump on the bandwagon. However, the marijuana industry’s growth may be slowing down, according to the latest data from the Cannabiz Media Cannabis Stock Index.
It’s possible that the stock of Jushi may rise once again.
If you just looked at Jushi Holdings Inc (CNSX:JUSH, OTCMKTS:JUSHFshare )’s price, you’d assume this multistate cannabis business in the United States was struggling in 2021.
JUSHF stock is down by: as of this writing.
- Over the past three months, there has been a 25% increase.
- Over the past six months, there has been a 40% increase.
- Year-to-date, 25 percent
- Since February’s highs, the stock has gained 51%.
It’s a bad situation. Jushi stock is up 103 percent year-over-year, which is the sole saving grace for investors.
Despite this, Jushi Holdings Inc has had an excellent year. It has achieved excellent financial performance, and the company’s management is optimistic about fiscal years 2021 and 2022.
JUSHF stock seems interesting now that its price has dropped.
The average 12-month share-price prediction of Wall Street analysts monitoring Jushi Holdings Inc is $8.36, with a high expectation of $11.10. This implies a further 85 percent and 154 percent upside potential, respectively.
StockCharts.com provided the chart.
Overview of the JUSHF Stock
Jushi Holdings Inc is a multistate cannabis cultivation, processing, and retail license owner and operator. California, Nevada, Illinois, Ohio, Pennsylvania, Massachusetts, and Virginia are among the states targeted. (Source: Jushi Holdings, Inc., “Investor Presentation: August 2021,” latest viewed September 7, 2021.)
Virginia, Pennsylvania, Illinois, and Massachusetts are the company’s primary markets at the moment. Ohio, Nevada, and California are its emerging markets.
Under the “BEYOND/HELLO” brand, Jushi Holdings Inc presently runs 21 dispensaries and intends to establish an additional 14. It also owns and runs five cultivation and extraction and processing plants.
“The Bank” (marijuana flower), “The Lab” (vape goods), “Tasteology” (edibles), “Sèche” (fine grind and fine flower), “Nira Medicinals” (cannabidiol [CBD] products), and “Nira” (cannabidiol [CBD] products) are among the company’s award-winning brands (physician-formulated CBD products).
Illinois has a new dispensary license.
Northern Cardinal Ventures, LLC, a Jushi Holdings partner, was granted a conditional retail dispensary license in Illinois through the state’s lottery procedure on August 23. (Source: Jushi Holdings Inc.’s Northern Cardinal Ventures Wins Illinois Dispensary License, Jushi Holdings Inc., August 23, 2021.)
Northern Cardinal’s operational and 49 percent ownership partner is Jushi Holdings.
The new dispensary will operate under the BEYOND/HELLO brand, making it the fifth BEYOND/HELLO facility in Illinois, pending regulatory clearances.
Obtaining a Processor’s License in Ohio
Jushi announced the completion of its purchase of Franklin Bioscience OH, LLC, a registered medical cannabis processor in Ohio, in late August. Franklin Bioscience is based in Columbus, Ohio, and has an 8,000-square-foot processing plant. (Source: Jushi Holdings Inc., August 26, 2021, “Jushi Holdings Inc. Completes Previously Announced Acquisition of Licensed Processor in Ohio.”)
In addition, the business announced the introduction of a series of new brands and goods in Ohio, starting with Sèche, its own brand. The introduction of Tasteology and The Lab by Jushi will follow the launch of the Sèche brand.
The 21st retail location for “BEYOND/HELLO”
Jushi’s subsidiary Agape Total Health Care Inc. launched its 21st BEYOND/HELLO retail site worldwide, 14th medical marijuana dispensary in Pennsylvania, and third storefront in Philadelphia on August 31. (Source: Jushi Holdings Inc., “Jushi Holdings Inc. to Open Its 21st BEYOND / HELLO Retail Location Nationwide,” August 25, 2021.)
Exceptional Q2 Results
Jushi Holdings reported sales of $47.7 million for the second quarter ended June 30, up 14.6 percent sequentially and 219.7 percent year over year. (Source: Jushi Holdings Inc., “Jushi Holdings Inc. Reports Second Quarter 2021 Financial Results,” August 25, 2021.)
At $21.9 million, gross profit was up 9.2 percent sequentially and 193.7 percent year over year. Jushi Holdings Inc reported $4.8 million in second-quarter net profits, compared to a $26.8 million loss in the first quarter of 2021.
The company’s adjusted EBITDA was $4.6 million in the second quarter of 2020, compared to $4.5 million in the first quarter of 2021 and a $1.2 million loss in the second quarter of 2020.
Jushi Holdings had $127.0 million in cash and short-term investments at the end of the quarter, with $85.0 million in total debt.
Business Developments in the Second Quarter
Jushi Holdings Inc: During the second quarter, Jushi Holdings Inc:
- BEYOND/HELLO opened its 19th and 20th retail locations in the United States, with the 12th and 13th shops in Pennsylvania.
- Organic Solutions of the Desert, LLC, a fully functioning dispensary in Palm Springs, CA, was purchased for 100% of its stock.
- Dalitso LLC, a fully owned subsidiary and Virginia-based pharmaceutical processor, has completed the purchase of a 93,000-square-foot building and nine acres of land.
- Nature’s Remedy of Massachusetts, Inc., a single-state operator with two dispensaries and a 50,000-square-foot cultivation and manufacturing facility, has signed a final agreement to be acquired.
- At its Pennsylvania grower-processor plant, the company started the first phase of its expansion project.
- Completed the purchase of a well-known Nevada firm.
Other Recent Happenings
In addition, Jushi Holdings Inc has recently:
- In Ohio, we completed the purchase of a licensed cultivator.
- In Virginia and Ohio, a number of cannabis companies and products were launched.
- A $14.4 million interim arbitration judgment, including legal costs and interest, was received.
- In the United States, the change to domestic issuer status was announced.
- The Hart-Scott-Rodino Antitrust Improvements Act of 1976 waiting period for the planned purchase of Nature’s Remedy has already expired.
Jim Cacioppo, CEO, chairman, and founder, said, “I’m very pleased with our performance in the second quarter; we achieved strong sequential revenue growth, industry-leading year-over-year revenue growth, and maintained Adjusted EBITDA profitability, while continuing to invest in our strategic growth initiatives.” Ibid.) (Source: Ibid.)
Business Prospects
In terms of the rest of the year, Cacioppo predicts that Jushi Holdings Inc will:
- Seven more BEYOND/HELLO dispensaries will be opened.
- With the purchase of Nature’s Remedy, you’ll get two dispensaries and a grower-processor facility in Massachusetts.
- Continue to expand its grower-processor plants in Pennsylvania and Virginia.
Jushi Holdings Inc raised its sales forecast for fiscal 2021 from $205.0 to $255.0 million to $220.0 to $230.0 million. The company’s adjusted EBITDA is anticipated to be in the $32.0–$37.0 million range.
The business anticipates sales of $375.0 to $425.0 million in fiscal 2022, with adjusted EBITDA of $110.0 to $130.0 million.
Expert Opinion
Jushi Holdings Inc is one of the most interesting cannabis stocks in the United States. The business has a solid balance sheet and has established a strong, quickly expanding presence in some of the most interesting areas in the United States.
Jushi Holdings is well positioned to execute its objectives to grow its national retail presence and develop its cultivation and processing assets because to its solid financial sheet.
All of these may push the price of Jushi stock upward.
Well, what do you know. All the news stories are saying that pot stocks are tanking, but here I am, reporting that they are actually up 25% in the first two quarters of 2017. And, in fact, they’ve already beaten the S&P 500 in two quarters. But what’s the real reason behind the recent slump in marijuana stocks? It’s simple: everyone got in early in these companies, and they are now in the process of locking in big gains.. Read more about curaleaf stock and let us know what you think.
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