Trulieve CEO on multi-state operators blockbuster quarter and the future of marijuana

Kim Rivers, Trulieve CEO, discusses the company’s blowout earnings report. With CNBC’s Courtney Reagan and the Fast Money traders, Guy Adami, Tim Seymour, Dan Nathan and Steve Grasso. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

The stars may be aligning for cannabis stocks as they tear higher on hopes around a reported Republican-led legalization effort, Tim Seymour said.

The Amplify Seymour Cannabis ETF (CNBS) portfolio manager and CNBC contributor told CNBC’s “ETF Edge” on Wednesday that a possible bill drafted by South Carolina House Rep. Nancy Mace to deschedule and regulate the federally illegal substance “could be a game changer for the cannabis industry.”

The removal of cannabis from Schedule I of the Controlled Substances Act would make it legal in the U.S.

“Despite all of the strong growth and bottom-up dynamics, [cannabis] really still is very much a macro story for investors,” Seymour said.

″[It’s] huge news for a market that was not expecting descheduling or a federal outcome potentially before midterm elections and something that clearly is in the price of cannabis stocks,” he said.

Both U.S. and Canadian cannabis stocks have skyrocketed since Marijuana Moment first reported on the bill’s existence, with many names including Seymour’s CNBS ETF erasing most of their recent downdrafts.

“You’ve effectively put in a reset, a sanity check, because as bullish as the backdrop is for investing in cannabis, it’s been a very difficult run for the last nine months,” Seymour said. “This announcement immediately took a spring-loaded industry significantly higher and maybe reset a lot of those charts.”

Big industry players including Trulieve and TerrAscend could also impress with their upcoming earnings reports, said Seymour, also founder and chief investment officer at Seymour Asset Management.

“Sequential third-quarter growth for a lot of the cannabis companies will not be what it was year over year, but 20%-40% growth at a time when the industry is frankly just becoming a lot more sophisticated,” he said.

“These are companies that are finally getting … that much more refined,” he said, highlighting the “operational excellence coming at a time when the valuations still put cannabis as a growth sector very much near the bottom of sectors that are showing enormous growth.”

Between earnings season, legalization hopes, possible merger and acquisition activity heating up, and valuations reset, cannabis stocks could continue their ascent, he said.

CNBS climbed more than 3% on Thursday. It is up nearly 7.5% year to date.

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10 Comments

  1. jonathan Stafford on November 22, 2021 at 1:48 pm

    They don’t have an accurate sale reporting system so it’s all fake (former employee who left because he realized it was all fraudulent… good products but compare the current prices to what they’d be able to charge n legal markets and you’ll start to realize how quickly this company will fold when they are forced out of their monopoly they created in Florida )



  2. Bob Bab on November 22, 2021 at 1:48 pm

    The results were great. I like the CEO, own the stock, agree with Tim. I think they will start looking at acquisitions but with an eye on "is this accretive" otherwise they’ll end up eroding their margin which will hurt the story and the stock price. Also they NEED federal legalization. All the major companies will say, "no, we don’t need that we are doing great" and that’s true for the companies, but not true for the investors – investors that want ROI need the institutional money, the banking, the synergies of cross-state. Still, a great long-term investment.



  3. FrankBowness on November 22, 2021 at 2:00 pm

    SHOUTOUT Daniel Pronk!!! Nice to see Kim on CNBC covering Trulieve!!



  4. Noles&Jags on November 22, 2021 at 2:03 pm

    Investors of Trulieve as well as several other MSO’s need to look at the big picture here. When the federal government stops looking at these MSO’s as state outlaws, the big boys (BUD, MO, TAP) will swallow up these new companies like fresh guppies and pay a premium to do it. Getting off the OTC will be top priority for all MSO’s as it should be. Then making their balance sheets look perfect will put them at the top of the sin city aquisition list. Kim Rivers is a living legend and I have enjoyed watching her work. Forward!



  5. Chris Molloy on November 22, 2021 at 2:11 pm

    😎



  6. Jay Phillips on November 22, 2021 at 2:19 pm

    Great job Kim, Kim Rivers is a dynamo CEO. I am stock owner and believer in the catalysts that will drive this stock higher. Just getting started in Pa, WV, Mass and Ga. This company is going to be busy growing and counting cash over the next decade.



  7. trkoby on November 22, 2021 at 2:19 pm

    Let’s get real CNBC. The people buying US MSOs are looking for a 100% return in a matter of weeks. And they’ll dump immediately if it’s not achieved.



  8. redogman67 on November 22, 2021 at 2:35 pm

    Wow CNBC, what a loaded question to start the interview. Trulieve and Kim are boss, CNBC should take some notes.



  9. PeanutButter Kong on November 22, 2021 at 2:38 pm

    nice job Kim. Kicking some butt. If you need to move margins to compete do it: you have the economies of scale by going deep in markets: just keep those G&A costs reasonable. Keep up the killer growth rate and try to keep debt low. I’ll keep buying 😉



  10. jonathan Stafford on November 22, 2021 at 2:40 pm

    Kim how is single life with your husband now someone’s prison wife.