Medmen stock is on the rise, with a recent boost of 20% in just 3 days. While the company hasn’t released any new information to justify this jump, some believe it’s because they have an agreement to buy another company engaged in cannabis production. Medium has focused more on growing than distributing and has been very clear about expanding into other states where medical marijuana is legal.
While we don’t have any concrete proof, Medmen will likely continue its upward trajectory. If you’re looking for a good investment opportunity in the space, this may be one for you!
Here Are The Reasons Why Medmen Stock Is On The Rise
1. A Potential Deal With a Cannabis Growth Company
Medium is working on purchasing a company that sells pre-rolls and other cannabis products. The WSJ reported this, which states that MedMen is in “advanced talks” about acquiring Green Thumb Industries, a producer of marijuana-infused edibles (the Canadian Medmen Stock Exchange’s Marijuana Index was up 10% yesterday).
Green Thumb Industries was created in 2011 and is based in Michigan. It boasts some impressive stats: In 2017, its sales were USD 23 million, and it had 45 employees. The company works directly with cannabis consumers to provide “consistently high-quality cannabis goods.” MedMen could use their experience to help streamline their business model. The deal is still in the negotiation phase, so it’s not a sure thing yet. But if you’re looking for a good company to invest in, this may be your best bet.
2. medmen stock Has Been Trying To Expand Faster Than Other Firms
MedMen has been trying to expand its reach across the country more quickly than other companies. They’ve recently announced plans to spend $25 million on new facilities spanning California, Nevada, and New York. These include three locations in California (Santa Ana, Venice Beach, and Berkeley), dispensaries in Reno and Las Vegas, and a cultivation facility in Sparks.
Medmen stock CEO Andrew Modlin has promised to focus on locations where they can responsibly provide cannabis. He said, “I don’t want to see a company doing something haphazardly. I want to see them get it right.” Prices have gotten uniformly higher in Nevada and California, starting at $6/gram before soaring toward $15/gram.
3. The Company Is Making Good Progress In The Venture Capital Market
MedMen is currently worth over USD 1 billion and is classed as a unicorn with over USD 200 million in funding. This has been achieved through spinoffs and selling off some of its assets. In July 2017, the company sold USD 73 million worth of shares to investors. This year it announced plans to sell USD 75 million of shares in three tranches. The first group sold out, and the second group is expected to do so shortly.
4. Medmen Stock Provides “A Good Return on Investment.”
Medmen stock gross margins are about 40% for each patient it serves, which is high for a cannabis dispensary. Its employees are also paid well (an average salary of USD 150k annually). The company is not yet profitable, but they plan to do so within the next 3-5 years. The firm focuses on “being the best cannabis company in the world, not just in the US.”
This may be good for you if you want a good investment opportunity. MedMen does have a lot to offer. While it hasn’t released any new information on why the stock has spiked so quickly in the last few days, we can only assume that it will continue until more information is available. It only has one real competitor, and it’s making headlines!
5. MedMen’s Competition Is Small And On The Decline
While MedMen isn’t yet profitable, this could be due to their push toward expansion more than anything else. While the company is still worth over USD 1 billion, it has a lot of competition. The other largest company in the space is known as CV Sciences. It’s based in California and works directly with patients to provide high-quality medicine from its dispensaries. In 2017 its revenue was nearly USD 250 million, with profits of just over USD 8 million.
However, CV Sciences has also been making headlines for less positive reasons. It had to lay off workers earlier this year because of “the need to produce higher revenues. ” This may mean it will struggle to achieve the profits MedMen is shooting for.
6. Medmen stock Is A Leader In The Cannabis Industry
The company was born in 2010 and has grown into a billion-dollar industry titan. It has dispensaries across California, Nevada, and New York, with extra stores coming soon to Massachusetts and Florida. The marijuana market is worth nearly USD 11 billion in America alone, and it’s expected to grow by over 150% by 2021. If you’re interested in this space, then MedMen is a company you should consider!
While we don’t know any more information than we’ve mentioned in this article, you may want to wait until more information comes to light before entering a position. This could be one of the best investments you’ll make, and it remains one of the most undervalued Medmen stock in the cannabis industry. As it continues to grow and expand, we could see its value keep climbing too!
Medmen Stock is a company that is still growing at a very rapid pace. It has made its name by producing high-quality products and is a leader in the marijuana space! Even though it hasn’t been making the profits that it has been shooting for, there’s no doubt that the company will be making them very soon! This article is not an offer to buy or sell shares in any companies mentioned. Our goal here at FinViz is to provide free research on as many companies as possible, and this article should be used just as information. We promise we won’t have your password if you click on any links, so you can feel safe doing so.