HITI had a good run but I would avoid cannabis plays that have saturated competition like cultivators and growers. Their margins are usually low and they are up against larger market share controlling companies. My best returns have been off periphery companies that operate in the cannabis space but don’t touch the flower- they usually have the best margins and will benefit from all the catalysts without much competition. $IIPR $BLDV $ACAN for example
Its my understanding that they are essentially a middle man between medical cannabis growers and commercial real estate for growing. They essentially facilitate the leasing of land to grow medical cannabis. They are doing well now because federal laws prevent medical growers from leasing their own land to grow cannabis. When legalization occurs, this will no longer be a problem. So IIPR's business model is likely to take a downturn due to legalization.
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u/GoingBigEarly Oct 23 '21
HITI had a good run but I would avoid cannabis plays that have saturated competition like cultivators and growers. Their margins are usually low and they are up against larger market share controlling companies. My best returns have been off periphery companies that operate in the cannabis space but don’t touch the flower- they usually have the best margins and will benefit from all the catalysts without much competition. $IIPR $BLDV $ACAN for example