Trulieve Cannabis Corp (OTCMKTS: TCNNF) is one of the fastest growing cannabis retailers in North America. The company has taken the Florida Cannabis landscape by storm in terms of retail network expansion as well as revenue growth.The company is currently rated as the largest medical cannabis licensee in Florida with a portfolio of 26 dispensaries. The company has also embarked on an acquisition drive that has allowed it to expand its footprint into other states in pursuit of opportunities for growth.Revenue growth underscores a company whose core business is firing on all cylinders, ideal for generating long-term shareholder value. A 70% spike in share price since the start of the year does not come as a surprise. TCNNF Daily ChartWhile the stock has pulled lower since the start of the second quarter, it remains engulfed in a long-term bull trend. A pullback from the $15 a share handle faces support at the $11 a share mark above which Trulieve remains well positioned to continue surging in line with the long term bull trend.A breach of the $16 resistance level should reaffirm the long-term bull trend, setting the stage for Trulieve to make a run for 52-week highs. Conversely, sell-offs followed by a close below the $11 critical support level would result in the acceleration of the sell-off wave that could result in the stock plunging to the $8 mark.However, Trulieve remains well positioned to continue surging after pullbacks given the bullish momentum in the cannabis sector as well as the engulfing long-term bull trend.
What Does Trulieve Cannabis Corp do?
Trulieve is a medical marijuana company engaged in the cultivation, production, and distribution of cannabis products. The Company has established a robust footprint in Florida where it sells its products through branded stores.
Growing Florida Business Portfolio
Shares of Trulieve are trading in an uptrend on investors reacting to the company establishing a robust retail footprint in Florida. With a network of 25 retail stores in the state, the company remains well positioned to target a broader market in pursuit of sales.According to the Chief Executive Officer Kim Rivers, the opening of more dispensaries aligns with the company’s strategy of providing reliable access to patients looking for cannabis products. Plans are underway to expand the network to 30 stores as Trulieve looks to strengthen its sales channels.
"Expanding access across the state, especially throughout South Florida, is crucial as its home to a large portion of patients. Our goal to ensure that all patients have access to high-quality, effective products in a space where they can feel comfortable and safe will always be our top priority,” explained Mr. Rivers.
In the stores as well as online, Trulieve continues to offer one of the largest selection of THC and CBD products. It also offers a variety of delivery methods as well as concentrates and topical creams that continue to strengthen sales.To enhance the retail strategy, Trulieve has tapped the talent of Timothy Morey who boasts of over 15 years of retail sector experience.
Expansion Drive
Trulieve has also set sights on other states as part of its growth strategy. The purchase of Life Science is poised to expand the company’s operations and pursuit of growth opportunities into Massachusetts. The Company has also set sights on California with the acquisition of Leaf Industries that is poised to spearhead its push for opportunities for growth in the market.The expansion drive is already paying off, as the company is fresh from posting a 172% increase in revenues in Q4 that came in at $35.9 million. The company generating $15.2 million in adjusted EBITDA and $10.4 million in operating income also underscores its push for positive cash flow.In 2019, the company is eyeing 108% increase in sales to $214 million with gross profit expected to total $145 million or 68% of revenues.
Bottom Line
Trulieve Cannabis boasts impressive numbers in the cannabis sector that points to a company growing at an impressive rate. Expansion into other states should strengthen and supplement the company’s operations in Florida, where it has generated most of its revenues to date. That said any pullback should provide an ideal entry position, at a discount, as Trulieve remains well positioned to continue climbing the cannabis ladder.We will be updating our subscribers as soon as we know more. For the latest updates on TCNNF, sign up below!Disclosure: We have no position in TCNNF and have not been compensated for this article.
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