Green Thumb Industries Stock is Soaring Fast, US Expansion Continues

Green Thumb Industries

On December 28th, 2018, Green Thumb Industries (CSE:GTII) stock was valued at $10.22 CAD. Now, only three weeks later, GTII stock has packed on a whopping 60%, selling for $16.14 CAD. So what has investors moving on this stock? Is Green Thumb Industries a cannabis company to watch in 2019?

Green Thumb Industries 

Manufacturing and selling a variety of marijuana products in the US, Green Thumb is on the frontline of the "cannabis as a mainstream consumer product" era. Its cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topicals.

As a major marijuana dispensary operator, it already owns and runs 73 retail stores across America in jurisdictions where the drug is legal.

However, 73 is not enough for the company! Expanding its retail footprint further, the company just signed a definitive agreement to acquire Connecticut’s Advanced Grow Labs in a deal valued at roughly $80 million. This deal means GTII will now have 12 manufacturing facilities along with licenses for 85 retail shops in 11 states.

Investors like expansion plans for an obvious reason.

Operations

According to InvestingDaily, since Green Thumb Industries went public in June 2018, GTII stock has gained 83.1%. Operating results were also robust; it racked in $17.2 million in Q3 2018—an increase of 344% from the same quarter in 2017. 

Investors should find those figures assuring; GTII is not only capable of serving the growing demand, but the demand itself shows an industry that is living up to the hype that cannabis is the next big investment play.

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Green Thumb Industries in 2019

Moving forward, Green Thumb Industries has made smart strategic moves and is showcasing impressive operation results. It is also a possible takeover target by larger rivals or mainstream consumer food and drinks companies. A buyout here would be beneficial for GTII stock even more so.

The Bottom Line

Being based in America might stymie GTII's full investment potential as regulations here are still ambiguous. However, legalization across the US is increasing and at a fast rate. But until cannabis is legalized entirely under federal law, this fact could remain a potential hurdle for GTII stock.

If you don't mind that though and believe those federal curtains will inevitably come down, then being a major dispensary at the heart of the US cannabis industry is too good a potential to overlook.

What do you think about the Green Thumb Industries expansion?

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