CRLBF - Why Cresco Labs Could Be an Underrated Stock to Buy Today
There are a lot of pot stocks to choose from, and Cresco Labs (OTC: CRLBF) sometimes gets lost in the crowd. At a market cap of less than $1 billion and trading volumes often below 300,000, it's not a real attention-grabber. However, that could be a missed opportunity for investors.
Chicago-based Cresco Labs has been steadily expanding its reach across the country and is slowly becoming a large, multistate operator. Last month, the company released its latest quarterly results, which showed tremendous sales growth, with revenues of $29.9 million rising by 253% from the $8.5 million in sales it generated in the prior year.
As good as that is, the company is going to get even bigger once its acquisition of Origin House (OTC: ORHOF) goes through, which will give Cresco a large distribution network to tap into in California. To help put it into perspective, in its most recent quarter, Origin House's sales topped CA$21.4 million in just the last three months. Its acquisition of Origin House is expected to be completed before the end of this year. When it was announced earlier this year, the all-stock deal was valued at about CA$1.1 billion, making it the largest public company acquisition to date in the U.S. cannabis industry.