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Is Trulieve The Best pot Stock To Buy Right Now?

The situation with the cannabis industry may have been quite difficult for quite some time but there have been few companies that have managed to stand away from the crowd. One such company is Trulieve Cannabis (CSE:TRUL) (OTCQX:TCNNF), which has emerged as one of the leaders in the cannabis industry in the United States and that has been reflected in the share price as well.

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The Trulieve stock has performed impressively over the past month and during the period, the stock has rallied by as much as 100%. In such a situation, it could be worthwhile for investors to perhaps take a keener interest in the stock.

Earnings Recap

Earlier this week, on Wednesday, the company reported its financial results for the second fiscal quarter and the performance proved to be highly impressive. Trulieve managed to generate revenues of $120.8 million for the quarter, which proved to be a record for the company, and in addition to that, it reflected a year on year rise of as much as 26%.

The adjusted EBITDA earnings came in at $60.5 million, which represented the 10thh straight quarter in which the company managed to turn a profit. More importantly, it constituted roughly 50% of the revenues generated by the company.

In addition to that, Trulieve also managed to generate free cash flow to the tune of as much as $39.6 million and the GAAP (generally accepted accounting principles) adjusted margins came in at an impressive 75%. Kim Rivers, the Chief Executive Officer of the company stated that the performance reflects Trulieve’s capability of generating from one quarter to the next through the continued expansion of its retail footprint. It should also be noted that as of June 30, 2020, the company reported cash and cash equivalents of as much as $150 million.

All this points to the fact that for those who are looking to invest in cannabis stocks, Trulieve could well be the best possible option in August. The company has become the biggest operator in the lucrative state of Florida and accounts for 51% of all medical marijuana sales in the state. Market research suggests that the Florida market could be worth as much as $1.9 billion in sales a year by 2024.

Trulieve has managed to become the biggest player in the state through organic retail growth and has kept marketing and operating costs under control. It is also generating a significant nominal profit and if Trulieve can venture beyond Florida then it could trigger another major spurt of growth.

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