MSO and LP Stock-Based Comp Analysis

As I work my way through analyzing the cannabis industry, I wanted to know how much the "Big 5" MSOs and LPs have been paying out to employees/management in the form of stock-based compensation. In line with what I expected, the LPs have been significantly larger issuers of stock-based compensation than the MSOs. Dialing into … Continue reading MSO and LP Stock-Based Comp Analysis

The Significance of Accruals and the MSOs

Summary Due to adjustments in fair value of inventory and biological assets, I am wary of potential earnings management/manipulation.Using traditional methods to measure cash flow and balance sheet accruals, during Q2'20 Trulieve measured with the highest earnings quality, but otherwise reported the worst earnings quality in FY'19.Curaleaf reported the lowest earnings quality relative to the … Continue reading The Significance of Accruals and the MSOs

Potential mispricing between MSO Warrants and LP Call Options

Call Options & Warrants @CCINVEST2 on Twitter made me wonder - are warrants for the MSOs appropriately priced? https://twitter.com/ccinvest2/status/1321121450615603200?s=20 I started by taking a step back and looking at 2022 LEAPS for a few of the U.S. listed LPs. In line with what I expected, call options expiring in 2022 imply breakeven prices that trade … Continue reading Potential mispricing between MSO Warrants and LP Call Options

MSOs vs LPs Pre-Election Volume Analysis

With the U.S. presidential election around the corner, I was curious to see what kind of demand the LPs have experienced in comparison to the MSOs. Time and time again, CNBC reports on the Canadian Licensed Producers when speaking to U.S. cannabis legalization/decriminalization, instead of the U.S. Multi-State Operators. As a quick example, Todd Harrison … Continue reading MSOs vs LPs Pre-Election Volume Analysis