Illinois Legalization Means Good Things For Green Thumb

Summary

• Green Thumb Industries beat expectations in last week's earnings calls - seeing high revenue growth while reporting losses as it invests in growth.
• U.S. Legalization continues to buoy investment opportunity here as does the recent legalization in Illinois.
• As it enters higher growth mode, Green Thumb remains an interesting buy as a lower market-cap high-growth pot stock.

Green Thumb Industries (OTCQX:GTBIF) sells a broad variety of marijuana products in the United States - through medical and recreational stores and centers. The company's products include topical, edibles, flowers, and concentrates for dabbing and vaporizing.

With its headquarters in Chicago, the company markets its products through third-party retailers. It owns and operates a chain of 73 retail stores under the name RISE. These stores are in several states, including Illinois where recreational marijuana legislation was just signed.

Founded in 2014, the company went public in June 2018 in the Canadian Securities Exchange (CSE) under the ticker symbol GTII and Over the Counter (OTC) under GTBIF.

Brief History of GTBIF Stock Performance

Since going public in 2018, the GTII stock has gained 83.1%. This is in line with several other pot stocks in the last year - where excitement about growing legalization efforts have buoyed share prices.

This comes on top of revenue growth exceeding 280% YoY. With a growing industry like marijuana, the numbers are still small and nascent, but the growth is exciting. The question is how long it can go on for and what markets will open up.

The numbers so far are good. Last week's earnings announcement beat expectations and though the company reported a net loss as it invests in new retail and employees, the cash on hand and revenue for the company still look fairly strong.

Marijuana Legalization In The U.S. and Illinois

Following the legalization of marijuana in several states in the United States, it has become a big business, even if it's not legal everywhere yet.

Things look promising, especially from the public opinion standpoint. According to three major national polls conducted in the country, the support for marijuana legalization is increasing rapidly. All three studies reveal that more than 60% of Americans support legalization. For instance, according to

Analyst’s Disclosure:I am/we are long GTBIF. 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.