Cannabis is having a hot month, with the US elections indicating a liberalizing of many states’ cannabis regulations, and a high likelihood of federal changes to boot. US multi state operators (MSOs) are cranking out increasingly large revenues, and while the Canadian system is in a woeful fugue state for the most part, the rising tide of cannabis lifts even the most written down of boats.
But nobody is watching Israel.
The breadbasket of Europe is getting its act together on the weed front, and Isracann (IPOT.C) is among those using the land of The Tribe as a launchpad into Western Europe, with a 165k sq ft greenhouse and processing facilityt at the heart of their business model.
Why would you put dollars into an Israel weed play and not just into one of the top 5 MSOs?
There’s currently a $37 million valuation on IPOT, which is thriving, while iAnthus (IAN.C), which is more or less a private company after its lenders devoured its soul, comes in at $36m. MedMen (MMEN.C), which is buried in debt and has no feasible way forward, is valued at three times IPOT’s market cap. Meanwhile, those that don’t suck at the act of existence, like Green Thumb Industries (GTII.C) and Trulieve (TRUL.C), sit at multi-billion dollar valuations ($4.5 billion and $2.1 billion respectively) that make it hard to double your money in the short term.
IPOT hasn’t been dropping golden eggs for the past several months, but that doesn’t mean it hasn’t been doing the work. As Israel’s regulators continue to evolve that industry locally, players are beginning to emerge, with IPOT among them. COVID did see some regulations tighten, which slpowed IPOT’s road to planting, but their financials show a steady hand that has reduced expenses, kept pre-launch losses low, and which leaves the company a solid year-plus of runway before they need to go find more money. The company expects to be bringing in revenues long before that.
Recent stock trading has shown an upward movement, indicating there are some who believe now is the time to lock in. I’m among them.
— Chris Parry
FULL DISCLOSURE: Isracann is an Equty.Guru marketing client