California sales.
California state cannabis sales for the month of July came in at ~$410M compared to ~$401M in the month of June. This represents a MoM increase of 2% and a YoY decline of 10%. This is the fourth month of YoY improvement and we see a backdrop of improving comps for the rest of the year. Still not a positive overly for the California cannabis market, but we are finally in a place where we have visibility into improvement for this market for the rest of the year.
C.A. pain already affected curlf.
Curaleaf (CURLF) is down roughly ~30% YTD, while MSOS is down over 50% in the same time period.
On August 9th, Curaleaf announced that they would have layoffs in their California sales division with plans to shutter their Sacramento facility. They plan on fully winding down the Sacramento facility by the end of the year. "These adjustments, while unfortunate, were necessary for the business and were made as a result of market changes and the competitive landscape in California," Tracy Brady, Curaleaf's senior vice president of communications, told Business Insider. How long before they start downsizing its operations in CO?
SPEAKER CALL INVITE.
Call Details:
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We are excited to host our quarterly Cannabis Legalization call with Zander Abrams, the Founder of the Cannabis Policy Forum. The topics we want to cover can undoubtedly take more than 60 minutes, but we will try to cover as many topics as we can from the thoughts below:
- A look at the mid-terms, including a recap on the primaries,
- Swing seats to look at in the general election
- Cannabis champions races (e.g., Nancy Mace, Schumer, etc.).
- Important state initiatives in this election cycle, including the North Dakota ballot and California taxes.
- What going on in Minnesota and its implications for other states?
- Legislative update - the CAOA dynamic and the challenges of SAFE+
- Judicial update - residency requirement was successfully challenged in Maine federal court, and arguments were recently heard in the 9th Cir in Washington.
GTBIF A TOP SIGNAL STREGNTH.
Green Thumb Industrues Inc. is a Hedgeye Cannabis Best Idea Long.
Every morning, our CEO and Macro Sector Head, Keith McCullough, publishes names that indicate the top signal strength for stocks. This morning, he published that Green Thumb (GTBIF) was one of those top signal strength names. Contact sales@hedgeye.com for more information about the signal strength stocks.
