The Cannabis Investing Podcast · Seeking Alpha

Cannabis investors - what you should know

·51 min·3 clips

Gastovich says Q1 2024 is the latest window for Schedule 3 before election season could block it.

1. The Cannabis Investing Podcast episode “Cannabis investors - what you should know” centers on cannabis equities, Schedule 3, and company-level operating discipline. 2. Host Reena Sherbel speaks with Nick Gastovich, known as Canninvestments on Twitter and Seeking Alpha, and he is presented as a sector analyst whose work aims to bring clarity and transparency to cannabis investors. 3. The episode asks what cannabis investors should know in mid-December 2023 as federal reform, Q3 earnings, and state-by-state market shifts all move at once. 4. Gastovich says the market is still “classic cannabis,” with MSOS swinging about 70% on the Schedule 3 announcement and then giving the move back. 5. He says Q3 earnings showed companies adjusting to Maryland coming online and Ohio moving toward adult use. 6. He argues the main theme is a sector-wide shift toward cash flow and profitability after years of prioritizing growth. 7. He says that shift matters because companies are trying to avoid dilution, equity raises, and more debt. 8. Gastovich points to Green Thumb Industries as a company that has stayed consistent on cash flow and profitability. 9. He contrasts that with Trulieve, where revenue fell from about $317 million in Q2 2021 to roughly $275 million recently, even as OPEX came down. 10. He also says Curaleaf has pulled out of California, Colorado, Oregon, and Vermont, while cutting about 750 employees over the year. 11. He highlights Grown Rogue as a smaller operator that knows “what they’re good at” by growing indoor flower at low cost in Oregon, Michigan, and New Jersey. 12. He uses Merimet as a counterexample, saying its cash flow and margin profile weakened as price compression hit the industry. 13. He explains that Illinois stores near the Missouri border were hurt when Missouri turned on and Illinois added more retail doors. 14. He says vertical integration helps because companies can move more product through their own doors as wholesale markets become more competitive. 15. He warns that 2021 overbuilding, including 250,000-square-foot-plus facilities in multiple states, is the wrong model for the current market. 16. He says investors should track share count growth against revenue growth, and he cites GTI’s fully diluted share count rising only about 1% since end-2021 while revenue grew about 13%. 17. The tone is analytical and conversational, with Sherbel pressing for concrete examples and Gastovich answering in company-by-company detail. 18. The format is a long-form interview that moves from market-wide themes into one-nice-one-less-nice stock commentary on names like Green Thumb, Trulieve, Curaleaf, Glasshouse, and Jushi. 19. Investors comparing cannabis operators, especially those focused on balance sheets and dilution. 20. Listeners seeking narrative stories or sector beginners without stock context.

As heard by us

A sober cannabis market check that keeps trading reality ahead of sector hype.

This conversation centers on cannabis stocks, Canadian operators, ETF access, and the mismatch between investor interest and market structure.

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You want a grounded read on cannabis investing, with MSOS, Canadian names, and sector pressures in view.

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