Cannabis Stocks: Trulieve and Curaleaf Join Major Indices
In our latest Trade To Black podcast presented by Flowhub, hosts Shadd Dales and Anthony Varrell, back from a golf trip to Oregon, break down two index inclusion announcements that are anything but housekeeping. MSOS closed at $5.41, and Trulieve (NYSE: TRLV) traded close to 3 million shares. We’ve also got some thoughts on Trulieve and Curaleaf joining the major indicies.
Curaleaf (TSX: CURA) (OTCQX: CURLF) has joined the FTSE Canada All Cap Index, its second major Canadian benchmark after entering the S&P/TSX Composite last year. The news follows Trulieve’s addition to the S&P Total Market Index and S&P Completion Index, along with their healthcare sub-indices. CEO Boris Jordan said each new index puts Curaleaf’s shares in front of new passive and active institutional funds. Varrell calls index funds constant bidders and a sign of an industry maturing. He credits Kim Rivers’ decision to deconsolidate and list Trulieve on the NYSE for that company’s payoff.
Green Thumb traded 1.2 million shares on the OTC and closed higher despite a large insider sale, days after announcing a $50 million share buyback. Varrell names Green Thumb, Trulieve and Curaleaf as the stocks capital will gravitate to. He predicts each could top $10 billion within three to five years.
This week’s NugMD Poll of the Week asked whether coworkers know respondents consume cannabis. Of 535 respondents, 29% said no one at work knows, 20% said a coworker or two, 6% said management, 19% said pretty much everyone and 26% were self-employed.
Varrell criticizes Aurora’s handling of Curaleaf’s takeover offer and argues the best outcome is Curaleaf acquiring the company. He notes Aurora is one of the only Canadian LPs with no U.S. exposure.
In segment two, Michael Bronstein, president of the American Trade Association for Cannabis and Hemp (ATACH), joins for his weekly Insiders Edge segment after the group’s largest Hill day yet. He says many lawmakers still don’t realize hemp THC and marijuana THC are the same molecule, and there is little consensus on hemp regulation. With few legislative days left after the recent four-week extension, he sees the hemp ban taking effect as a likely outcome. He also warns that some hemp companies are telling lawmakers their products won’t affect drug tests. And while politicians may support legalization, he says many remain wary of the industry itself. Tune in tomorrow when Adam Stettner returns to discuss developments in Georgia.
