Research from Atrium Research, Atrium Research Corporation

Atrium Research

Research from Atrium Research

Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. 

Our research product includes in-depth initiation reports, research notes, thematic research pieces, and company fact sheets.

Equity Bottom-Up

<ul>
<li>Sentiment for cannabis stocks remains at all time lows with the MSOS and MJ ETFs down 95% and 93% respectively from their highs.</li>
<li>We believe there are solid names in the sector that have formidable growth and expanding margins albeit the tough pricing environment.</li>
<li>The sector trades at historically low multiples, with the Canadian LPs at 7.3x 2025E EBITDA and MSOs at 6.5x.</li>
</ul>


Sentiment for cannabis stocks remains at all time lows with the MSOS and MJ ETFs down 95% and 93% respectively from their highs.
We believe there are solid names in the sector that have formidable growth and expanding margins albeit the tough pricing environment.
The sector trades at historically low multiples, with the Canadian LPs at 7.3x 2025E EBITDA and MSOs at 6.5x.


Glass House Brands Inc - Taking Another Look at Cannabis Stocks

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>Rescheduling Is the Single Biggest Catalyst for US Cannabis.</li><li>It removes the 280E tax burden that prevents US plant-touching operators from deducting ordinary operating expenses, which in many cases doubles the effective tax rate.</li><li>280E only applies to Schedule I and II drugs, so the proposed move to Schedule III would remove 280E.</li></ul>

Rescheduling Is the Single Biggest Catalyst for US Cannabis.It removes the 280E tax burden that prevents US plant-touching operators from deducting ordinary operating expenses, which in many cases doubles the effective tax rate.280E only applies to Schedule I and II drugs, so the proposed move to Schedule III would remove 280E.

WTR Small-Cap Spotlight Recap - Five Cannabis Trends for 2025

<ul><li>2024 is shaping up to be another difficult year for cannabis investors.</li><li>The lack of federal reform and Florida failing to pass Amendment 3 have dampened spirits and lowered expectations, stock prices, and valuations as we head into the new year.</li><li>Below are five factors we expect to have an impact on the cannabis industry in 2025.</li></ul>

2024 is shaping up to be another difficult year for cannabis investors.The lack of federal reform and Florida failing to pass Amendment 3 have dampened spirits and lowered expectations, stock prices, and valuations as we head into the new year.Below are five factors we expect to have an impact on the cannabis industry in 2025.

Cannabis Trends Update - Five Factors That Will Drive 2025

<ul><li>The US cannabis MSOS ETF ended the week +7.05%, while the global YOLO ETF finished +7.03%.</li><li>The MJUS ETF rebalancing drove considerable volatility in the underlying, with MariMed (CSE: MRMD, OTCQX: MRMD) and TerrAscend (TSX: TSND, OTCQX: TSNDF) both up more than 30% in the last five sessions, while Curaleaf (TSX: CURA, OTCQX: CURLF) and Green Thumb Industries (CSE: GTII, OTCQX: GTBIF) ended in the red.</li><li>The top 10 MSOs (by enterprise value) have reported 2Q earnings. </li></ul>

The US cannabis MSOS ETF ended the week +7.05%, while the global YOLO ETF finished +7.03%.The MJUS ETF rebalancing drove considerable volatility in the underlying, with MariMed (CSE: MRMD, OTCQX: MRMD) and TerrAscend (TSX: TSND, OTCQX: TSNDF) both up more than 30% in the last five sessions, while Curaleaf (TSX: CURA, OTCQX: CURLF) and Green Thumb Industries (CSE: GTII, OTCQX: GTBIF) ended in the red.The top 10 MSOs (by enterprise value) have reported 2Q earnings. 

The Highlights - Cannabis News for the Week Ending August 16, 2024

<ul><li>This week, MSOS dropped 9.34%, while YOLO fell 4.46%. All the top 10 (by enterprise value) MSOs finished down.</li><li>Verano (NEO: VRNO, OTCQX: VRNOF) -17.11% and Cannabist (NEO: CBST, OTCQX: CBSTF) -14.17% felt the most pain. Jushi (CSE: JUSH, OTCQX: JUSHF) held up best, losing 5.17% over the past five sessions.</li><li>MSOS peaked 1,223 days ago on February 10, 2021, and is in a -87.31% drawdown. .</li></ul>

This week, MSOS dropped 9.34%, while YOLO fell 4.46%. All the top 10 (by enterprise value) MSOs finished down.Verano (NEO: VRNO, OTCQX: VRNOF) -17.11% and Cannabist (NEO: CBST, OTCQX: CBSTF) -14.17% felt the most pain. Jushi (CSE: JUSH, OTCQX: JUSHF) held up best, losing 5.17% over the past five sessions.MSOS peaked 1,223 days ago on February 10, 2021, and is in a -87.31% drawdown. .

The Highlights - Cannabis News for the Week Ending June 14, 2024

United States

Jushi Holdings Inc. operates as a holding company. The Company, through its subsidiaries, focuses on building a diverse portfolio of high-quality cannabis and hemp products. Jushi Holdings serves customers in the United States.

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Jushi Holdings (JUSH CN)

Glass House Brands Inc - Taking Another Look at Cannabis Stocks

Sentiment for cannabis stocks remains at all time lows with the MSOS and MJ ETFs down 95% and 93% respectively from their highs.

Atrium Research

WTR Small-Cap Spotlight Recap - Five Cannabis Trends for 2025

Rescheduling Is the Single Biggest Catalyst for US Cannabis. It removes the 280E tax burden that prevents US plant-touching operators from...

Water Tower Research

Cannabis Trends Update - Five Factors That Will Drive 2025

The lack of federal reform and Florida failing to pass Amendment 3 have dampened spirits and lowered expectations, stock prices, and valuations as...

Water Tower Research

The Highlights - Cannabis News for the Week Ending August 16, 2024

The top 10 MSOs (by enterprise value) have reported 2Q earnings. Revenue declined 0.8% Q/Q and grew 4.27% Y/Y, while adjusted EBITDA fell 0.9% Q/Q...

Water Tower Research

The Highlights - Cannabis News for the Week Ending June 14, 2024

Verano (NEO: VRNO, OTCQX: VRNOF) -17.11% and Cannabist (NEO: CBST, OTCQX: CBSTF) -14.17% felt the most pain. Jushi (CSE: JUSH, OTCQX: JUSHF) held...

Water Tower Research

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