David Trood
Advanced Flower Capital Overview
Advanced Flower Capital Inc. (NASDAQ:AFCG), a cannabis mortgage REIT, keeps disappointing investors. I last wrote about AFCG on March 28, giving it a Buy rating based on its low valuation
Advanced Flower Capital: The Dividend Is In Danger Again, I'm Out (Downgrade)
Summary
- Advanced Flower Capital's disappointing results, underperforming loans, and management's shaky track record have eroded my confidence and prompted a downgrade from Buy to Sell.
- Distributable earnings failed to cover the dividend in Q1, raising the risk of another cut and highlighting ongoing execution issues and slow loan recoveries.
- Despite a low valuation and high yield, persistent declines in book value and lack of clear catalysts make AFCG a value trap, not a bargain.
- I'm moving on from AFCG for now—investors should sell and wait for tangible signs of operational recovery before reconsidering.
I objectively search for undervalued stocks of any size across a wide variety of industries using quantitative methods that I've thoroughly backtested for success. I believe the numbers are more important than the story (most of the time), as they tend to paint a more realistic picture of the company’s prospects. I have been investing since 2013. Apart from what I’ve learned from experience, my knowledge comes from reading a vast number of stock market books over the years. Some of my favorites include 100 Baggers, Financial Shenanigans, and The Quants.Earlier part of StockBros Research and now writing under this account.
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