Marijuana Business, Stocks, Finance, & Investing – MJ Shareholders

Brighton to allow marijuana stores for the first time

MJ Shareholders — Sun, 11 Feb 2024 15:29:37 +0000

The city of Brighton is about to get a little greener.

This week, the Brighton City Council voted 7-2 to allow recreational marijuana shops for the first time. The council-approved ordinance allows for the establishment of four stores, with two of the licenses reserved for social equity applicants. Applications open March 1.

This will be the first time Brighton, which is located primarily in Adams County, has ever allowed cannabis businesses within city limits, despite the fact that recreational weed has been legal in Colorado for a decade and medical marijuana has been legal since 2000. The city still prohibits cultivation and manufacturing businesses.

Read the rest of this story on DenverPost.com.

Letters: What marijuana regulation? We purchased a biscotti-flavored vaporizer with THC potency of 84.9%.

MJ Shareholders — Thu, 18 Jan 2024 01:28:37 +0000

Marijuana regulations don’t seem overly complex

Re: “Colorado paved the way, and sky didn’t fall,” Dec. 31 news story

I read with interest the article about the 10-year wild ride of marijuana legalization and was intrigued by the comment by Truman Bradley, executive director of the Marijuana Industry Group, a business trade association.

Read the rest of this story on DenverPost.com.

Three Things Regulators and Policymakers Can Do to Undercut Criminal Markets and Support Legal Main Street Cannabis Businesses

MJ Shareholders — Fri, 11 Aug 2023 02:44:46 +0000

Prepared by NCIA

The simple truth is that regulated cannabis markets are not working for the vast majority of small businesses, including equity businesses.

Regulators increasingly understand that these businesses are struggling, but face the daunting challenge of knowing where to start with the many, many, many voices calling for attention. Of course, regulators are also wary of accepting a rescue plan for Main Street businesses from lobbyists exclusively paid for by the handful of large Wall Street backed businesses that can afford such slick-talking representatives.

Providing a credible voice for those Main Street businesses is at the core of NCIA’s mission.

As a result, our Policy Co-Chairs Khurshid Khoja and Michael Cooper recently traveled to the annual external stakeholders meeting of the Cannabis Regulators Association (better known as CANNRA), where they were invited back to address state and local cannabis regulators from across the country. Michael and Khurshid spoke on issues of crucial importance to the future of the industry, including the challenges facing small businesses, the successes and failures of social equity programs, the potential pitfalls of rescheduling without addressing FDA oversight in advance, and establishing a level playing field between state-licensed cannabis businesses that provide highly regulated delta-9 THC marijuana products, and unregulated actors that provide equivalent products with equally potent, psychotropic and/or chemically analogous cannabinoids derived from hemp.

Regulators were clear at the meeting that they need more credible, tangible solutions for the challenges facing these markets, and they wanted to hear directly from the nation’s oldest, largest and still most representative non-profit trade association for the regulated cannabis industry.

Today, NCIA is proud to offer the first of a series of policy papers that offer specific steps that regulators and policymakers across the nation can take to help these struggling markets.

Want to help NCIA fix the challenges you’re facing? Existing members are encouraged to contact us at Membership@thecannabisindustry.org to provide feedback or learn how you can get involved with this project. Not a member? No problem. Sign up here, and roll up your sleeves to join the fight.

IRC Section 280E: An Unjust Burden on State-Legal Cannabis Businesses

MJ Shareholders — Thu, 03 Aug 2023 14:45:00 +0000

Prepared by NCIA

Section 280E of the Internal Revenue Code forbids businesses from deducting otherwise ordinary business associated with the “trafficking” of Schedule I or II substances, as defined by the Controlled Substances Act.

This provision was enacted by Congress in 1982 in order to penalize illegal drug dealers. However, today the IRS aggressively applies Section 280E to state-licensed cannabis businesses, entities that were never conceived of when the statute was originally adopted.

An overwhelming majority of U.S. states now permit some form of legal cannabis commerce despite its nonsensical Schedule I status under federal law. As a result of the outdated federal status, 280E is being applied to thousands of licensed businesses effectively prohibiting them from taking the ordinary business deductions every other business relies on.

We updated our position paper, “IRC 280E: An Unjust Burden on State-Legal Cannabis Businesses,” to help illustrate the facts about this outdated provision of the tax code. We’ve already delivered this publication to every member of Congress but we encourage you to download it and share with those in your network who need to know about 280E.

The publication includes data from NCIA’s chief economist Beau Witney which shows that exempting state-legal cannabis businesses from 280E would create a net benefit to the economy of nearly $2 billion dollars over the next three years. That means more new jobs, more prosperity, and more payroll taxes for the federal government.

Denver issues ticket, warning letters to unlicensed cannabis hospitality businesses

MJ Shareholders — Tue, 01 Aug 2023 22:44:53 +0000

Eight businesses have recently received warnings for hosting marijuana-related activities in Denver without the required license, with a separate ticket issued to Tetra Lounge.

On Saturday, the city investigated multiple locations after receiving complaints of illegal events taking place, said Eric Escudero, spokesperson for Denver Department Of Excise And Licenses. Officials issued a general violation ticket to the operator of Tetra Lounge at 3039 Walnut St. “for necessity of a license to operate,” he added.

Tetra Lounge didn’t immediately respond to a request for comment. Escudero declined to comment further on that specific case, as it’s being handled by the Denver City Attorney’s Office as a criminal matter. Spokesperson Melissa Sisneros declined to comment on pending litigation.

Read the rest of this story on DenverPost.com.

Risk Management and Insurance Manual: A Novel Cannabinoid Conundrum – Loopholes, Liability, and Legislation

MJ Shareholders — Thu, 27 Jul 2023 22:44:47 +0000

Risk Management and Insurance Manual: A Novel Cannabinoid Conundrum – Loopholes, Liability, and Legislation | The National Cannabis Industry Association

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Prepared by NCIA

The National Cannabis Industry Association’s Risk Management & Insurance Committee is a multidisciplinary group of risk management professionals convened to draw on the expertise and experiences of professionals dedicated to the cannabis community.

This is the third in a series of insurance manuals that will help guide you through the various coverages and definitions used in the cannabis insurance industry. This edition of the RMIC Insurance manual frames the issues surrounding novel cannabinoids and the risk and insurance considerations around them. Read the first edition here, as well as the second edition here.

NCIA is leading the cannabis industry’s unified and coordinated campaign to ensure our business sector is treated fairly and has the opportunity to reach its full potential. Now – more than ever – is the time to invest in your business and the future of the industry by becoming a member.

Join NCIA today

Colorado’s marijuana industry calls this year’s 4/20 sales “the worst” in recent years

MJ Shareholders — Sat, 08 Jul 2023 08:45:00 +0000

Colorado’s marijuana industry dubbed weed sales for this year’s 4/20 “the worst” in five years.

The Marijuana Industry Group, a Denver-based trade association, is sounding the alarm bells for the state’s “struggling” industry, as falling sales compound with business closures and layoffs. This year, the market’s entrepreneurs are contending with too much supply, not enough demand, increased competition in other states, dropping prices, a dearth of cannabis tourism, the draw of black market weed and more.

April’s marijuana sales – medical and retail combined – stood at close to $132 million, which counts as the lowest number in five years, according to the Colorado Department of Revenue. In April 2018, the number was about $124 million.

Read the rest of this story on DenverPost.com.

Dispensary buys former South Broadway firehouse for $3M

MJ Shareholders — Sat, 08 Jul 2023 08:44:54 +0000

A local dispensary has bought a piece of the city’s history.

Wellness Center of the Rockies, also known as The Center, recently purchased a former firehouse at 600 S. Broadway for $3 million.

The seller, Firehouse Thirteen LLC, purchased the property for $300,000 in 2000, property records show.

Read the rest of this story on DenverPost.com.

Infinera Stock Is an Affordable 5G Stock That Could Double or Triple

MJ Shareholders — Sat, 10 Jun 2023 10:45:22 +0000

Why INFN Stock Looks Cheap Right Now

As more organizations dive deeper into 5G technology as a way to power the wireless communications of the future, I expect we could see a renaissance in the 5G space.

One rapidly growing player in the optical networking and 5G sectors is Infinera Corp. (NASDAQ:INFN), a developer of advanced optical networking solutions. Infinera stock presents a compelling risk/reward opportunity to investors.

Infinera generates more than $1.0 billion in annual revenues from more than 1,000 customers around the world. The company serves the majority of the world’s biggest telecommunications service and Internet content providers. (Source: “Investor Day 2021,” Infinera Corp., last accessed January 24, 2023.)

In terms of fundamentals, Infinera is financially sound and is heading toward profitability.

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As for share-price performance, INFN stock has rallied by 50% over the last three months but remains 42% below its five-year high of $12.39 (set in May 2018) and down by 71% from its record high of $25.24 (set in August 2015).

With Infinera stock’s current price weakness, the company is undervalued. This provides opportunities for risk capital.

Chart courtesy of StockCharts.com

Infinera Corp.’s Financials Translate to Attractive Valuation

Infinera’s revenues have risen in its last four consecutive reported years. Its revenues nearly doubled from 2017 to 2021, translating to a compound annual growth rate (CAGR) of 17.9% during this period.

Analysts’ consensus estimate has Infinera growing its revenues by 6.6% to $1.5 billion in 2022, followed by 8.9% to $1.7 billion in 2023. (Source: “Infinera Corporation (INFN),” Yahoo! Finance, last accessed January 24, 2023.)

This means Infinera Corp. trades at just 0.95 times its consensus 2023 revenue estimate.

Fiscal Year	Revenues	Growth
2017	$740.7 Million	N/A
2018	$943.4 Million	27.4%
2019	$1.3 Billion	37.7%
2020	$1.4 Billion	4.4%
2021	$1.4 Billion	5.1%

(Source: “Infinera Corp.,” MarketWatch, last accessed January 24, 2023.)

Infinera produced two straight years of positive earnings before interest, taxes, depreciation, and amortization (EBITDA), following three years of EBITDA losses.

Infinera Corp.’s move toward positive EBITDA indicates that it has been doing a good job on the cost side as its revenues go higher.

Fiscal Year	EBITDA (Millions)	Growth
2017	-$81.6	N/A
2018	-$54.4	33.2%
2019	-$57.8	-6.0%
2020	$7.4	112.8%
2021	$26.5	257.8%

(Source: MarketWatch, op. cit.)

Moving to the bottom line, Infinera Corp. has lost money building its business, but the company has a pathway toward positive generally accepted accounting principles (GAAP) diluted earnings per share (EPS) in 2023.

Analysts expect Infinera to report an adjusted profit of $0.03 per diluted share in 2022 and $0.30 per diluted share in 2023. (Source: Yahoo! Finance, op. cit.)

Fiscal Year	GAAP Diluted EPS	Growth
2017	-$1.32	N/A
2018	-$1.36	-2.9%
2019	-$2.16	-59.0%
2020	-$1.10	49.2%
2021	-$0.82	25.0%

(Source: MarketWatch, op. cit.)

Infinera Corp.’s free cash flow (FCF) was negative in its last five reported years, but the company’s revenue growth and move toward profitability should drive up its FCF toward positivity. In fact, Infinera reported positive FCF of $8.6 million for the third quarter of 2022.

Fiscal Year	FCF (Millions)	Growth
2017	-$79.9	N/A
2018	-$116.8	-71.0%
2019	-$197.6	-44.4%
2020	-$151.3	23.4%
2021	-$13.3	91.2%

(Source: MarketWatch, op. cit.)

Analyst Take

Infinera Corp. is a favorite of institutional investors; 270 institutions hold the majority of INFN stock. Moreover, company insiders have been actively buying shares Over the last six months, insiders bought 545,731 shares of the stock and sold none. (Source: Yahoo! Finance, op. cit.)

The fact that Infinera Corp. has been generating major revenues and the company trades at a low valuation makes Infinera stock compelling. It might be a good idea for investors to follow the moves of institutional investors and the company’s insiders.

Cantaloupe Stock: Overlooked Tech Company Reports Super Q1 Results

MJ Shareholders — Sat, 10 Jun 2023 10:45:11 +0000

CTLP Stock Has 110% Upside

Shares of Cantaloupe Inc (NASDAQ:CTLP) have made some decent gains since November 2022, climbing by about 40% since then.

Conservative Wall Street analysts think Cantaloupe stock has a lot more room to run, potentially making gains of 110% over the next 12 months.

Why do analysts think CTLP stock is such a big deal? Cantaloupe Inc is a leading provider of payment software services for the self-serve retail market, a rapidly growing but overlooked market.

The company recently reported excellent financial results for the first quarter of its fiscal 2023. Management believes the first-quarter results position Cantaloupe Inc for financial growth and profitability in the rest of the fiscal year. There aren’t many tech penny stocks with this kind of outlook.

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On top of that, Cantaloupe Inc recently completed an acquisition, accelerating its international expansion. The company also announced an agreement that will see its hardware be used in more than 20,000 new self-service locations.

Chart courtesy of StockCharts.com

About Cantaloupe Inc

I don’t work in retail, but some days it feels like it when I’m forced to use self-serve checkouts. I may not like it, but this is the future of shopping, and Cantaloupe Inc is leading the charge.

Cantaloupe is a software payments company that provides technology for the “unattended retail” market. The company’s technology is designed to increase customer engagement and sales through digital payments, digital advertising, and customer loyalty programs. (Source: “Investor Day,” Cantaloupe Inc, December 12, 2022.)

Cantaloupe’s customers include businesses in the vending machine, “micro market,” gas station, electric vehicle charging station, laundromat, metered parking terminal, kiosk, amusement, entertainment, and gaming sectors.

Between fiscal 2017 and 2022, the company’s total revenue expanded at a compound annual growth rate (CAGR) of 15%. Its subscription fee revenue climbed at a CAGR of 15% and its transaction fee revenue rose at a CAGR of 22%.

Recent Business Deals

In December 2022, Cantaloupe announced that it had completed its acquisition of Three Square Market (also known as 32M) for $41.0 million. (Source: “Cantaloupe Acquires Three Square Market (32M), Accelerating the Company’s Micro Market Presence and International Expansion,” Cantaloupe Inc, December 5, 2022.)

32M is a leading provider of software and self-service kiosk-based point-of-sale and payment solutions for the micro market industry.

The acquisition gives Cantaloupe full-service capabilities in the high-growth micro market industry and immediately expands Cantaloupe Inc’s international footprint. The acquisition also:

Expands Cantaloupe’s micro market foothold by nearly 3,000 locations in North America and countries including the U.K., Sweden, and Romania
Is immediately accretive to Cantaloupe’s revenue growth and earnings before interest, taxes, depreciation, and amortization (EBITDA) margins
Is estimated to generate $19.0 million of revenue, with EBITDA margins of at least 20%, for calendar year 2022

Also in December 2022, Cantaloupe Inc announced that Sodexo’s convenience business InReach chose Cantaloupe to bring its cashless payment systems to all 18 of its U.S. branches, for 18,800 vending machines and 1,200 micro markets. (Source: “Sodexo’s InReach Chooses Cantaloupe’s Complete Business and Payments Platform to Power 20,000+ Self-Service Locations,” Cantaloupe Inc, December 8, 2022.)

Sodexo North America is a food services company with operations in all 50 U.S. states, Canada, Puerto Rico, and Guam. It’s also part of a global Fortune 500 company that has operations in 55 countries. The company provides catering, culinary, nutritional service, and vending operations.

Sodexo North America serves more than 100 million customers in the corporate, defense, education, energy/resources, government, health-care, long-term care/retirement center, and remote-site sectors.

Strong Q1 Revenue Growth

For the first quarter of fiscal 2023 ended September 30, 2022, Cantaloupe Inc announced that its revenues increased by 26% year-over-year to $57.8 million. This was fueled by the company’s sixth consecutive quarter of record transaction revenue. (Source: “Cantaloupe, Inc. Reports First Quarter Fiscal Year 2023 Results,” Cantaloupe Inc, November 7, 2022.)

The company’s transaction fees went up by 18% year-over-year to $31.3 million, its subscription fees increased by 11% to $15.8 million, and its equipment sales jumped by 108% to $10.7 million.

Cantaloupe Inc reported a first-quarter net loss of $8.9 million, or $0.13 per share, compared to a net loss of $1.6 million, or $0.02 per share, in the same prior-year period.

The company’s active customers increased in its first fiscal quarter by 21% year-over-year to 25,019, while the number of its active devices increased by three percent to 1.2 million.

Ravi Venkatesan, Cantaloupe Inc’s chief executive officer, noted, “Gross margin and adjusted EBITDA were negatively impacted primarily due to one-time migration costs related to our transition to the [Amazon Web Services] cloud environment, and procurement of higher priced components to fulfill customer demand.” (Source: Ibid.)

He continued, “However, this positions us well for growth and profitability for the remainder of the fiscal year.”

For its full fiscal year, Cantaloupe Inc expects to report:

Revenue between $225.0 and $235.0 million, representing year-over-year growth of 10% to 15%
Net income between $1.0 and $5.0 million
Adjusted EBITDA between $12.0 and $17.0 million
Total operating cash flow between $10.0 and $15.0 million

Analyst Take

Cantaloupe stock is a great tech stock in the burgeoning and lucrative unattended retail sector. The company has been adding new customers, increasing the number of its active devices, launching new products, and announcing strategic acquisitions.

The outlook for Cantaloupe Inc is stellar, with the recurring nature of its business driving reliable revenue growth.

The company’s dynamics are expected to continue in fiscal 2023 and beyond, meaning CTLP stock could be set to rise.