Curaleaf Holdings (CSE:CURA) (OTC:CURLF) stock has been moving significantly in February. The Massachusetts-based company is one of the cannabis firms reporting significantly higher growth rates in 2019.
At the time of writing, CURA stock is selling for $10.40 CAD on the CSE. It has more than doubled its value since the end of December.
Curaleaf Holdings
According to analysts at Insider Financial, Curaleaf's "continued expansionary outlook has led different analysts and investors to forecast a steep increment in its operational capacity and consequently in its share price going forward."
So as analysts turn bullish on the company's expansion prospects, its share price has been steadily increasing.
Expansion
Curaleaf, a vertically integrated medical cannabis company, is arguably one of the US's "largest multistate operators" as it holds licenses in 11 states. Operations include 42 dispensaries, 12 cultivation sites, and 10 processing sites.
Focusing on the medical cannabis sector, Curaleaf already boasts over 100,000 registered clients in each state it operates in.
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According to Benzinga, in 2018 Curaleaf "opened more dispensaries in Florida than any other company." The company is now planning a nationwide expansion with its line of hemp products. It is taking advantage of the 2018 Farm Bill, which legalized industrial hemp across the US.
Vertically Integrated
As a vertically integrated company, Curaleaf covers every aspect of the cannabis supply chain, from cultivation through to production and then retail. Its products are produced from its own yield of high-quality flower.
As CEO Joseph Lusardi at a recent Capital conference said: “It pays to be vertical.” There's an argument for investors here: vertically integrated companies cover every aspect of operations itself.
As such, there is no reliance on outsiders to pull their weight. This also means the company can set its own margins for each step in the chain, ensuring costs are kept to a minimal. There is also a consistency in the flow of operations, and this tends to mean an overall consistency of product quality.
Is Curaleaf stock on the cusp of taking off further? Do you like the security of a vertically integrated cannabis company?
Featured Image: LinkedIn
