CURALEAF HLDGS INC

Tim Seymour, portfolio manager of the $CNBS Amplify Seymour Cannabis ETF (NYSE: CNBS), is renowned for recognizing the potential of the cannabis sector early on. In an exclusive interview with Benzinga Cannabis, he discussed the critical role of strategic partnerships in expanding market reach, the importance of operational efficiencies in improving gross margins and the potential of the U.S. hemp cannabinoid market as a burgeoning and legally complex segment poised for substantial growth. These insights are vital for investors looking to understand the dynamics that drive profitability and growth in the cannabis industry. “Cannabis sector growth continues to exceed expectations, particularly as regulations begin to soften worldwide. This shift is creating significant investment opportunities,” Seymour told Benzinga. He underscored the dynamic nature of the market, fueled by regulatory changes that often catalyze growth and investor interest. Investment Strategy And Portfolio Management In managing the $CNBS ETF, Seymour employs a selective strategy that prioritizes companies with robust governance structures and strong market potential. “In a nascent industry like cannabis, governance and strategic foresight are paramount. We focus on companies that are not only well-managed but also poised for growth. "We specifically look at leaders like Curaleaf (OTC: CURLF), which is renowned for its expansive operational footprint and ...Full story available on Benzinga.com

Related tickers: BTI, OGI, GTBIF, TCNNF, CURLF, CNBS.

Among the top 5 multi-state operators (MSOs) in the cannabis industry is Cresco Labs (OTC: CRLBF), with a significant presence in states like Ohio, Pennsylvania and Florida. According to a report from Pablo Zuanic of Zuanic & Associates, among the top 5 MSOs, Cresco has the strongest brand portfolio measured by market share in overlapping states and operates one of the best-performing dispensary chains Cresco Labs' profit and cash flow metrics are among the best in MSOs and trading at 6.5x EBITDA, the stock is attractively valued compared to peers. This makes Cresco Labs an interesting cannabis stock for investors seeking value and growth in the industry. Financial Performance According to Zuanic’s report, Cresco Labs has shown substantial improvement in its financial metrics. As of the first quarter of 2024, the company reported sales of $194 million, with an estimated revenue of $748 million for the full year. Cresco's second-quarter earnings forecast projects an increase in sales to $199 million by the end of 2025. The company’s adjusted gross margins have increased by nearly 600 basis points to 51% in the first quarter of 2024. The adjusted EBITDA margins have also risen significantly, improving by 1400 basis points to 29%. Operating cash flow has seen a marked increase, rising from $15-19 million in the calendar years 2021-2022 to $59 million in 2023. Market Position And Valuation In 2023, Cresco Labs focused on improving its financial performance by divesting underperforming units and concentrating on its core operations. This strategic shift has led to significant improvements in profitability and cash flow. The report notes now Cresco ...Full story available on Benzinga.com

Related tickers: GTBIF, CURLF, CRLBF, ACRHF, VRNOF.