Trulieve: Florida Is Becoming More And More Competitive

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Cornerstone Investments


  • Trulieve is facing increasing competition from local operators including many MSOs that are bigger and better-funded.
  • Curaleaf and Surterra are two of the largest competitors to Trulieve and Liberty Health is also expanding aggressively.
  • We think Trulieve has decent visibility to grow into its current valuation but increasing local competition and sole reliance on Florida remain the biggest risks to the stock.

Trulieve (otcpk:TCNNF) has dominated the Florida market since the beginning. The company built its billion-dollar empire single-handedly on its sprawling retail and cultivation footprint within the Sunshine State. However, just as Trulieve is having difficulties exporting its success to other states, we are seeing an incredible pick-up in the speed in which other competitors are expanding their footprint in the Florida market. We think Trulieve needs to prepare itself for an increasingly hostile competitive environment and we think margin compression is a possible near-term risk for investors to consider given the number of new entrants and their aggressive actions lately.

(All amounts in USD)

Florida Heating Up

Trulieve is facing increasing competition in its home state Florida as other competitors ramp up their expansion efforts. We will discuss the key competitors for Trulieve in Florida to illustrate the point that Trulieve is no longer the only dominant player in Florida. Moreover, Trulieve is facing competitions from MSOs that are much bigger and better funded which spells trouble for the company in the near to medium-term.

Curaleaf (otcpk:CURLF) opened its 24th dispensary in Florida on April 30 which is also the 44th dispensaries for the company overall. Curaleaf is the largest U.S. cannabis company by market cap now and it has ample capital to support its continued growth in Florida. We expect the company to continue its rampant expansion and reach the 30 store limit in no time. We think Curaleaf is a prime example of a well-capitalized MSO expanding in Florida to capture the strong growth in one of the fastest-growing medical markets.

Surterra Wellness (Private) is a private company in the U.S. cannabis market and holds another license in Florida. The private most recently raised $65 million Series C funding in July 2018 and raised a total of $200 million

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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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