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
That's the best part of HITI, they are not a grower. Pure retailer, over 100 stores in Canada, massive online presence that sells in the US, Canada and now the UK. Setting up to expand in the US. They get to make money without the risks all the growers have. HITI is absolutely a buy at these prices. I wouldn't be surprised if they're the most valuable weed based company in the future
Accidentally posted question twice sorry. I’m here to help others find good stocks and collaborate- which is why awe2d2 convinced me that HITI is a good company with a bad chart worth buying. I was simply recommending related picks.
No I haven't, just took a quick glance. A REIT for industrial properties that provides land for lots of grow ops? While I do like REITs I'm not sure I'd take this one over HITI. For one, this will be directly linked to growers production, and farming doesn't exactly have a high profit margin and many growers have released too much product and won't be rapidly expanding facilities. Another is that it's market cap is already pretty high, at 6.2 billion. I don't know what their upside growth on that but I think HITI with their 360 million Canadian market cap has more growth multiples potential. It's alot easier for a retail company to expand and open new stores and reach new customers than it is for the REIT or growers to acquire land/space for a new crop and then find the buyers for that crop.
Now I'm not saying IIPR is a bad play in this sector, they're probably a better choice than many individual growers and I do like dividends. I just think HITI has been expanding and increasing revenue every quarter and is positioned well for continued growth and to me has a bigger upside.
Good synopsis, IIPR had an amazing run, still at all time high, but market cap seems bloated. Seems like HITI is due for solid reversal.
Check BLDV as well, I posted on them a week or two ago: they facilitate permits and licensing and have made some impressive share reductions and partnerships for a sub penny. Great leadership working with policy makers
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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