• Baked In
  • Posts
  • 📈 Earnings Season Is In Full Swing 📈

📈 Earnings Season Is In Full Swing 📈

Author

William McNarland
March 14, 2024

GM Everyone,

Well, everyone, Fat Joe and Kamala Harris are purportedly coming to the cannabis industry's aid. Not quite. The event will be held at the White House and is being marketed as a major cannabis reform event. Will this do anything to further our cause? Probably not. But, once again, the "C" word is being pushed at the highest levels of office. So, we will wait until the event has concluded to pass judgment. Let's hope this sheds just a little more light on the industry and the social justice causes associated with it, and that something positive actually comes out of it. We are all watching, Madam Vice President; it's time to right all of the wrongs of the last five decades.

Today’s letter can be read in 8 minutes and 11 seconds. 

  • Cresco, AYR and The Cannabist earnings are out

  • Cybin has a huge “break through”

  • David Goubert joined us to recap earnings yesterday

  • Jushi is on deck today to join the livestream at 4pm

Capital Markets Recap of Wednesday:

The TDR Comprehensive Cannabis Index increased by just under 2%, with numerous earnings reports released after the bell. The increase was driven by the TDR Integrated Cannabis Index, while the decrease came from the TDR Retail Cannabis Index. The TDR Crypto and TDR Crypto Miners Index rose by just over 1%. The overall stock market experienced a slight decline, as indicated by the TDR $$ Global 50 Index.

Capital Markets this Morning:

What's Driving the Market Today?

The futures are up and showing all green, here is what is in focus globally for stocks:

  1. Oil prices rise, complicating inflation

  2. Tesla's stock continues to fall

  3. Bipartisan vote on TikTok U.S. divestment

  4. Hapag-Lloyd profits plunge, dividend cut

  5. ECB members to speak, U.S. data awaited

Cannabis Capital Markets Price Overview:

The High Flyers yesterday were led by CordovaCann which was up by just over 39%, and the Low Flyers were led by StateHouse, which was down over 20% on the day. Here are the charts of the High and Low Flyers:

Let's examine the highlights from companies in the TDR Comprehensive Cannabis Index!

  1. AYR Wellness (CSE: AYR.A, OTCQX: AYRWF) FY 2023 financials reveal growth and improved profitability, read all about it on the TDR Website!

  2. FY 2023 for The Cannabist Company (NEO: CBST, OTC: CBSTF): stable revenue, improved financials, and strategic focus for 2024. Read all about it on the TDR Website!

  3. Cresco Labs (CSE: CL, OTC: CRLBF) FY 2023 shows a notable increase in profitability and cash flow, contrasted by quarterly and annually revenue dips. Read all about it on the TDR Website!

  4. Village Farms International (NASDAQ:VFF) achieves record Q4 sales and financial improvements in 2023 driven by its Cannabis business. Read all about it on the TDR Website!

  5. Jushi Holdings (CSE: JUSH, OTCQX: JUSHF), reports Q4/FY 2023 financials, showing profit margin stability, net loss decrease, and significant SKU expansion. Read all about it on the TDR Website!

  6. Planet 13 (CSE:PLTH, OTCQX:PLNH) Q4 and FY 2023 financial results, featuring revenue numbers, net loss improvements, and plans to position for growth. Read all about it on the TDR Website.

  7. Tilray (Nasdaq: TLRY; TSX: TLRY) expands its MOLLO® beverage line with CBG-infused, zero-sugar cannabis seltzers in three flavors.

  8. TILT Holdings (NEO: TILT; OTCQB: TLLTF) partners with LEVEL to distribute effects-based cannabis tablets in Pennsylvania.

  9. Cansortium (CSE: TIUM.U; OTCQB: CNTMF) expands in Florida with new Tampa and Ruskin cultivation facilities, creating 40 jobs.

  10. Tilray Wellness (Nasdaq: TLRY; TSX: TLRY) introduces hemp-powered superfood breakfast products at Expo West.

  11. Earnings continue this week, the calendar is below:

Cannabis: News

  1. The SAFER Banking Act could significantly ease banking access for cannabis businesses, fostering safety and industry growth. Read all about it on the TDR Website!

Cannabis Policy: Highlights from our Friends at Marijuana Moment

  1. Virginia's governor is unlikely to sign a bill legalizing retail cannabis sales, despite legislative approval.

  2. Massachusetts Governor Maura Healey plans to pardon hundreds of thousands with misdemeanor marijuana convictions.

  3. NIDA highlights its research into psychedelics and cannabis as key reasons for its requested funding in President Biden's budget.

  4. VP Harris will discuss marijuana reform with pardon recipients at the White House, highlighting Biden-Harris justice reforms.

Psychedelic News:

  1. Cybin (NYSE American: CYBN) announces a $150M oversubscribed private placement for Phase 3 drug development and general corporate purposes.

  2. Cybin (NYSE American: CYBN) CYB003 shows promise in treating Major Depressive Disorder, with FDA Breakthrough Therapy Designation accelerating its development. Read all about it on the TDR Website!

  3. Utah lawmakers passed a bill allowing hospitals to use psilocybin and MDMA for treatment, pending the governor's approval.

  4. A study finds psychedelic use in adolescents may lower psychotic symptoms but increase manic symptoms in those genetically predisposed.

Crypto and Miners

  1. Bitcoin's open interest hits a new all-time high of $33.9 billion, indicating increased investor optimism despite potential correction risks.

  2. Michael Saylor plans to indefinitely hold MicroStrategy's 205,000 bitcoins, viewing it as the ultimate form of property and investment.

  3. Coinbase (NASDAQ:COIN) plans a $1B private offering of convertible notes due 2030, with a $150M over-allotment option.

AI

  1. The European Parliament approved the world's first comprehensive AI regulation, setting global standards for artificial intelligence use and innovation.

  2. Devin AI is introduced as the world's first fully autonomous AI software engineer with capabilities in coding, debugging, and problem-solving.

Big $$ Volume Big Caps

  1. OpenAI (NYSE:MSFT) partners with Le Monde and Prisa Media to enrich ChatGPT with content and enhance AI model training.

  2. Disney (NYSE:DIS) evaluates four division leaders for CEO role as Bob Iger's 2026 contract ends.

Micro and Small Cap REITS

  1. BRT Apartments (NYSE: BRT) reports a 2023 net income of $3.9M and a Q4 net loss of $1.7M, alongside dividend and share repurchase activities.

On today's Trade To Black podcast, we sit down with Trent Woloveck, Chief Strategy Director at Jushi, to breakdown the company's Q4 earnings and strategize on future growth. Dive deep into our discussion on Jushi's expansion and innovation, particularly with the introduction of new products like Sѐchѐ Kind Grind and Fine Grind. These offerings have significantly boosted Jushi-branded sales, now constituting around 53% of total retail revenue in Q4 2023 across their vertical operations.

On yesterday's Trade to Black Podcast, join us as we explore the future of cannabis with Ayr Wellness CEO David Goubert, dissecting the impact of the latest Q4 earnings on the industry's trajectory.

Tuesday on Trade to Black 4PM ET with Mark Yusko, a guest whose never holds back. We're explaining the Bitcoin halving and its ripple effects across the crypto landscape, with a spotlight on the unforeseen influences of Bitcoin ETFs. With Mark Yusko's expert analysis, explore how these halving events shape price movements and investor sentiment, offering a unique glimpse into the future of cryptocurrency.