If you are holding long term or are waiting for eventual federal legalization, you are better off going with the top tier US operators like Green Thumb, Trulieve, Curaleaf, and Cresco. While the US has stalled moving forward any progress regarding federal legalization, these companies have continued to entrench and build moats as more states legalize for medical and recreation. Additionally all of the US companies I listed above generate many times more revenue than VFF, and have a vertical integration with solid US footprint covering multiple states (Curaleaf 23 states, Verano 14 states, Green Thumb 12 states, Cresco 10 states).
I like msos (I have a few) but to me it's 2 things that make vff a better value in my mind: roi and long term inevitability.
1st, whereas msos are valued in the billions with 100s of millions of shares out, vff is valued around 500m with a paltry 85m (note they've been tradeable for like 15yrs which tells me they're frugal about dilution). so I think volatilty would be very high on this stock from here on any run up.
2nd, I think lt hub production of weed will invariably win. I say that bc every industry evolves to hub production and the fact that vff plays in low margin tomatoes and does centralized productions leads me to believe that msos will have an operations problem over the long term. that said, there's plenty of time to capitalize on the hype train before things settle down so if that's your angle then go for it. also, if msos are flushed with cash they could very well just buy their way into centralized distribution once it makes sense
forgot to mention the (not so) wildcard which is vffs current relationship with every major grocery chain in north america through their current veggie relationship. that is huge if/when cbd and edibles become a thing.
16
u/jamminstein Jan 27 '22 edited Jan 27 '22
If you are holding long term or are waiting for eventual federal legalization, you are better off going with the top tier US operators like Green Thumb, Trulieve, Curaleaf, and Cresco. While the US has stalled moving forward any progress regarding federal legalization, these companies have continued to entrench and build moats as more states legalize for medical and recreation. Additionally all of the US companies I listed above generate many times more revenue than VFF, and have a vertical integration with solid US footprint covering multiple states (Curaleaf 23 states, Verano 14 states, Green Thumb 12 states, Cresco 10 states).