- GRWG has gone up nearly 900% in 2020 so far, driven by strong business performance and a resurgence of cannabis stocks.
- The company is capitalizing on the strong stock market to raise capital and accelerate roll-up acquisitions.
- The business is a low-margin retail business and has benefited greatly from stay-home COVID restrictions and the growing cannabis industry.
- Valuation has gotten too high for this stock which implies limited upside and a high risk of a correction; we suggest wait for better entry points.
For further details see:
GrowGeneration: Valuation Stretched After 900% Gain