(Disclaimer: These articles are merely informational in nature, and in no way should be considered expert financial advice. As with any investment, psilocybin stocks, especially those owned by newer companies, are subject to significant fluctuations in value. Therefore, caution should always be observed when investing.)
Company: Trulieve Cannabis
Stock: TCNNF
Investment Risks: Moderate
Investment Rewards: Moderate
Current Price: $24.87
Company Background: Trulieve Cannabis is a medical cannabis company. The company cultivates and produces products in-house and distributes its products to Trulieve branded stores (dispensaries) in Florida, California, Massachusetts, Connecticut, Pennsylvania, and West Virginia, as well as directly to patients through home delivery. Their brand portfolio includes The Connoisseur, for the more discriminating consumer, The Core, a wide variety of cannabis products, and The Proponent, for those seeking to enhance their health through cannabis. They offer cannabis products in the form of flower, edibles, and concentrates, and also offer content designed to educate the public about the properties of cannabis and their products so they can make more informed decisions.
Leadership: Ms. Kimberly River, Chair, Pres & CEO; Mr. Alex D’Amico, Chief Financial Officer; Mr. Eric Raymond Powers III, J.D., Chief Legal Officer & Corp. Sec.; Ms. Rebecca L. Young VP & Chief Accounting Officer; Mr. Nilyum Jhala, Chief Technology Officer; Mr. Jason Barry Pernell, Chief Information Officer; Ms. Lynn Ricci, Director of Investor Relations & Corp. Communications; Ms. Victoria Walker; Director of Marketing & Community Relations; Mr. Timothy Morey, Chief Sales Officer; Ms. Valda Coryat, Chief Marketing Officer
Philosophy/Mission of the Company: Trulieve Cannabis states its mission is “to provide compassionate care patients can trust when traditional medicine is not enough.” To this end, they offer direct assistance by working with people’s physicians to identify the best cannabis products with regard to each person’s health needs. Specifically, they offer low-THC/CBD products “for patients who need non-euphoric care.’
Performance: Like most other cannabis companies, Trulieve Cannabis has struggled with growth, peaking in March only to tumble the remainder of the year, with the overall growth rather flat YTD. However, a recent article in the Motley Fool points out that the company is hyper-competitive in Florida, where they account “for nearly 50% of total cannabis sales and has been consistently profitable since 2017 — an achievement few other marijuana companies can claim.”
Moreover, Trulieve just acquired Harvest Health & Recreation Inc. which, according to Motley Fool, “will boost its presence in several other states and make it the most profitable multi-state marijuana business in the country.”
Stockinvest.us states that expected to fall -11.70% during the next 3 months and, with a 90% probability hold a price between $19.47 and $25.29 at the end of this 3-month period. However, American Banking and Market News lists information that projects that the stock could reach between $62 and $73.
Final Thoughts: Trulieve Cannabis is a stable, growing company and its acquisition of Harvest Health & Recreation Inc. will undoubtedly expand its market reach. Overall, this makes the stock a pretty good buy. (Please see the Litigation section below.)
Litigation: It appears there are a number of lawsuits that Trulieve Cannabis is battling. According to gripeo.com, “The CEO, Kim Rivers and her spouse, J.T. Burnette are facing heat for their involvement in a large corruption scandal. J.T. Burnette is a hotelier and businessman. You can understand the depth of the case as FBI had planted multiple undercover agents to complete their investigation.”
Additionally, there was a class-action lawsuit filed by Rosen Law Firm, a global investor rights law firm, back in 2019. Perhaps most concerning Truelieve “filed a lawsuit in Florida state court against GRIZZLY RESEARCH LLC (“Grizzly”) alleging, among other claims, defamation for publicly disseminating false and libelous statements about Trulieve to manipulate the stock price and further its own financial interests,” according to their website.
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