Followers | 245 |
Posts | 2993 |
Boards Moderated | 0 |
Alias Born | 06/16/2015 |
Sunday, February 21, 2021 5:58:35 AM
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.
Recent JUSHF News
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 09/18/2024 08:05:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/17/2024 09:51:47 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/17/2024 09:49:51 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/17/2024 09:45:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/17/2024 09:43:41 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 09/16/2024 04:15:09 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/07/2024 08:11:53 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/07/2024 08:05:43 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/04/2024 09:16:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 01:29:25 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/09/2024 08:21:29 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 08:06:04 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 05/06/2024 08:12:10 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM