TCNNF - Trulieve's Triumph: Navigating Growth And 280E Tax In The Green Rush

2024-03-18 13:57:34 ET

Summary

• Trulieve's stock price has increased by 70% since my previous analysis on January 18, 2024, with a current market capitalization of $2.04 billion.
• A "Buy" rating is maintained for Trulieve, citing potential for further short-term growth and long-term opportunities in the U.S. cannabis sector.
• Trulieve operates through regional hubs and continues to lead in anchor states such as Florida, Pennsylvania, and Arizona with the best profitability among peers.
• Their bold tax strategy has been playing out as expected restructuring Trulieve' debts.

Since my last analysis on Trulieve Cannabis Corp. ( OTCQX:TCNNF ) [CSE:TRUL] ("Trulieve") explaining its overall business and tax strategy, Trulieve's stock price has shot up fr om $6.39 per share on January 18, 2024 through a wild ride to $10.91 per share on March 15, 2024. Trulieve's market capitalization went accordingly from $1.2 billion to $2.04 billion by whopping 70% as of March 15, 2024.

Despite the staggering increase in stock price, my thesis for Trulieve maintains the same with a "Buy" rating inching toward a "Strong Buy" as Trulieve has been executing through its business and tax strategies accordingly in the past quarter and the political environment is moving more in favor of rescheduling cannabis. There is still room to grow both in the short-term to align valuation with peers and in the long-term to capitalize the growth in the U.S. cannabis sector....

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