Ascend Wellness Holdings (AAWH), mcap=$461m, price $2.45 vs $2.35

– A bet that early investments by cannabis multi-state operators into limited license markets will pay off significantly over time.
– AAWH is set up to be a multi-bagger over the next few years.
– The company’s footprint was chosen to be in states with limited licenses, and larger upfront costs – thus deterring competition.
– Well-regarded management.

Valuation: Trades at 5.2x ’22 and 3.0x ’23 EBITDA. Larger MSO peers are 7-8x the current year. At 8x forward EBITDA would be $9-10/share stock.

Exp. gain: +300% to $9-10/share.

Full $AAWH write-up (free guest account required):

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