1 Big Reason to Remain Bullish on Trulieve
Trulieve Cannabis (OTC: TCNNF) is unlike many of the big pot stocks out there. The company is profitable and it continues to generate sales growth. And yet, much of its success has been limited to one key market: Florida. The other obvious oddity is that the stock's up 85% year-to-date -- it's outperforming not only the Horizons Marijuana Life Sciences ETF (OTC: HMLSF) and its abysmal 24% decline, but also the S&P 500, which is up over 4% this year.
Trulieve has achieved a lot in 2020 and its stock is coming off all-time highs, but there's still room for it to climb, suggested by the company's recently increased guidance. It may not be too late for new investors to jump onboard -- the company is gearing up for big sales growth once it turns its focus outside Florida and looks to acquire budding cannabis-related businesses. Let's dig into Trulieve's expansion plan, and see whether it reassures investors that they can buy this stock high and expect to sell it even higher.
Trulieve's second-quarter results for the period ending June 30 earned plenty of excitement when they were released on Aug. 12. Sales of $120.8 million were up 109% from the year-prior, and the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also grew by 92% to $60.5 million. It was the 10th straight quarter that its adjusted EBITDA was in the black. Trulieve's cash and cash equivalents also grew from $100 million in the first quarter to $150 million.
Source Fool.com
