Jushi Holdings Inc (JUSHF)

[MoneyForNuthin]

$JUSHF Published just yesterday morning (Saturday, Feb 20), Motley Fool lays out the basis for 2x to 3x JUSHF stock price improvement just to get to fair market value RIGHT NOW.

https://www.fool.com/investing/2021/02/20/3-unstoppable-small-cap-stocks-to-buy-right-now/

Where the author notes that "Most pot stocks are valued at anywhere from four to five times Wall Street's forecasted sales for 2022 or 2023," he reports that Jushi's market cap is only 2.4x projected 2022 sales and 1.6 times 2024 sales. This translates to the current share price being only around 1/3 to 1/2 of current market value.

Motley Fool is NOT the only source to report this undervaluation.

The article (excerpt):

3 Unstoppable Small-Cap Stocks to Buy Right Now
Game-changing returns are just a click of the buy button away.

Sean Williams
Feb 20, 2021 at 6:06AM

This could turn out to be a very big year for the relatively young bull market. The Federal Reserve has pledged to keep lending rates at or near historic lows through 2023, and the Biden administration is fine-tuning a plan to spend as much as $1.9 trillion on a new fiscal stimulus package. This would come atop the more than $3 trillion spent last year in response to the coronavirus disease 2019 (COVID-19) pandemic.

With access to cheap capital readily available, businesses of all sizes should benefit. However, it might be especially good news for small-cap stocks.

Following the March 2020 bottom, we've watched established and/or high-growth large-cap businesses thrive. Meanwhile, small-cap stocks (publicly traded companies with a market cap ranging from $300 million to $2 billion) have mostly lagged. But with so much available capital and investors' appetite for risk returning, this trend may be ready to reverse.

If you're looking to add unstoppable small-cap stocks to your portfolio, the following trio can be bought with confidence right now.

1. Jushi Holdings

Despite the incredible volatility we've witnessed in North American marijuana stocks since 2017, cannabis is an industry with incredible growth prospects this decade. That's why small-cap multistate operator Jushi Holdings (OTC:JUSHF) is such an unstoppable force in the largest marijuana market in the world, the United States.

Though Jushi has retail or cultivation operations in around a half-dozen legalized states (36 U.S. states have waved the green flag on weed in some capacity), it's the company's core focus on three states that makes it unique.

In 2021, Pennsylvania, Virginia, and Illinois are expected to account for around 80% (or more) of total sales for Jushi. What these states have in common is that they issue cannabis-dispensary licenses on a limited basis. In Pennsylvania and Illinois, only a preset number of licenses can be granted. Meanwhile, in Virginia, licenses are issued on a jurisdictional basis.

The point is, Jushi is focusing its efforts on states where competition will be limited or nonexistent, which should allow it to build up its brand and gobble up lucrative market share. You know the phrase, "work smarter, not harder?" This is it in action.

Even after a roughly tenfold increase in its shares since the March 2020 bear market bottom, Jushi remains relatively inexpensive. Most pot stocks are valued at anywhere from four to five times Wall Street's forecasted sales for 2022 or 2023.

As for Jushi, its $902 million market cap is approximately 2.4 times projected 2022 sales and 1.6 times 2024 sales, based on Wall Street's consensus. Plus, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance of $40 million to $50 million in 2021, there's a really good chance the company will turn the corner to recurring profitability this year.

If you need one more reason to like Jushi, let it be this: Management and insiders collectively put up $45 million of the first $250 million in capital raised by the company. When the interests of management and shareholders align, investors tend to do very well.