MedMen Enterprises Inc (MMEN)

[ZenMan 111]

Our MedMen Stock Prediction In 2019 (Buy or Sell?)
By John Persinos • January 15, 2019 • Forecasts
Overall MedMen Forecast And Prediction For 2019
After weighing the pros and cons of MedMen, the verdict goes to the bulls.
For starters, the normalization of marijuana laws represents an unstoppable trend. States and localities are becoming addicted to the tax revenue from pot and Congress knows this fact of life. Most lawmakers don’t want to end the tax revenue gravy train.
And MedMen’s own revenue is growing like gangbusters. The company reported stellar fourth-quarter 2018 results, setting it apart from many other marijuana companies that are long on hype but lacking in healthy operational results. The highlights:
•Systemwide revenue reached $20.6 million, up 1,317% from $1.5 million in fourth quarter 2017 and 44% from $14.3 million in third quarter 2018.
•Fiscal year 2018 systemwide revenue was $39.8 million, up 1,390% from $2.7 million in fiscal year 2017.
Admittedly, for its fiscal year 2018, MedMen reported a net loss of $66.6 million, or $2.77 per basic and diluted share. But I view this loss as temporary, as the company makes shrewd investments in future growth.
When investing in small- or mid-cap “disruptors,” red ink can be tolerated by investors over the short term, as long as revenue is rapidly growing and management is using the revenue to invest in future organic growth. That appears to be the case with MedMen, which is poised for outsized gains in 2019 and beyond.
John Persinos is the managing editor of Investing Daily.
https://www.investingdaily.com/45745/our-medmen-stock-prediction/