On of today Marijuana Market UpdateI will reply to an email to the viewer about a popular stock of cannabis: Jushi Holdings Inc. (OTC: JUSHF).
Dan Recently sent me an email to ask:
Hey! I’ve been watching JUSHF for quite some time and now that it’s around $ 1.60 a share, do you think we’re at the bottom and it presents a solid long-term buying opportunity?
Thanks for your question, Dan.
First, let’s talk about society.
Jushi Holdings Inc. Deep Dive
Jushi Holdings Inc. (OTC: JUSHF) Based in Boca Raton, Florida. It cultivates, processes and distributes medical and adult cannabis products for use in Pennsylvania, Virginia, Ohio, Illinois, California, Nevada and Massachusetts.
It also offers hemp-based CBD products under brand names such as:
- the bank.
- The laboratory.
- Nira + clinics.
- And taste.
Joshi also operates 32 retail sites.
During the first quarter of 2022, JUSHF:
- Acquired The Apothecarium, a Las Vegas-based medical cannabis clinic chain.
- Acquired NuLeaf Inc. In Nevada, which includes a massive breeding plant and a processing facility.
- And it launched its own flower brands, The Bank and Seche in Massachusetts.
But Joshi’s stock is still far from its highs.
When Dan wrote to me last week, Joshi is trading at around $ 1.60 per share. It has since fallen to around $ 1.49 per share.
JUSHF rose 2% on Monday as the rest of the market sold. This is not a market hitting movement, but it is something that needs to be taken into account.
The stock is about $ 0.80 below its simple 50-day moving average – which is a bear.
JUSHF Cannabis Power Rating
Let’s take a look at our cannabis power rating system to see where JUSHF ranks among the other cannabis stocks.
Overall, the stock wins a 32Which is “Bear,” with a 12 On momentum and 60 On value.
JUSHF has collapsed 74% in the last 12 months. The 2% jump on Monday was nice to see, but it’s too early to know if this is a sustainable uptrend.
So let’s focus on its value.
JUSHF value + holdings
I compared the price-to-price ratio (earnings, sales and book values) to industry averages. In this case, the program I use compared Joshi to the agriculture industry.
For the record, the program I use introduces most cannabis growers to the agriculture industry.
Currently, JUSHF has a price-to-earnings ratio of 6.43, compared to an industry average of 13.4 – so Joshi is about half the average … which is good in terms of value.
Its selling price ratio is 1.22, while the industry average is 4.22 – another good sign of JUSHF’s value.
However, its price-to-book ratio is 1.39 … slightly higher than the industry average of 1.14.
All of this suggests that JUSHF is a decent value compared to other industry-related stocks.
Long-term potential for JUSHF
To answer Dan’s question, I think there are strong long-term chances for JUSHF, but I do not know if the 2% increase at the beginning of the week is enough to continue.
This is the biggest problem I currently have with it and other cannabis stocks.
I just do not know if we have reached the bottom yet.
If the broader decline in the market continues, it will present a stronger counter-spirit to the entire cannabis market. Investors are watching two things right now: the overall trend in stock prices and cannabis legalization efforts.
The Bottom Line: JUSHF expands further to Nevada and increases product offerings in other states. And it does so at a pace that will not last too long. Purchasing a growing and processing facility along with a new retailer minimizes potential supply issues to a minimum.
Overall, I would like to see a deeper uptrend in the stock before I sign a buy here.
That’s all for me this week.
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Where Jushi Stock (JUSHF) Goes From Here Source link Where Jushi Stock (JUSHF) Goes From Here