‘Green Thumb Industries (GTBIF) is Undervalued’ Says Miller Value Partners
Miller Value Partners, an investment management firm, published its ‘Opportunity Equity’ fourth-quarter 2020 Investor Letter – a copy of which can be seen here. A net return of 35.4% was recorded by the fund for the Q4 of 2020, outperforming its S&P 500 benchmark that delivered a 12.15% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Miller Value Partners, in their Q4 2020 Investor Letter, said that Green Thumb Industries Inc. (NYSE: GTBIF) is undervalued in terms of their licenses. Green Thumb Industries Inc. is a cannabis consumer packaged goods company that currently has a $7.7 billion market cap. For the past 3 months, GTBIF delivered an impressive 77.76% return and settled at $36.44 per share at the closing of February 12th.
Has the Canadian cannabis bubble popped again?
Investors poured into pot stocks this week, fueled by fervent social media posts and optimism that the drug would become legal in the U.S. sometime this year. Cannabis companies - large and small, American or Canadian, profitable or perennial losers - all recorded significant gains over the past month.
However, many of those names came back to earth on Thursday, potentially spelling an end to the early-2021 run. Nanaimo, B.C.-based Tilray Inc. plummeted 50 per cent to close at US$32.16. Meanwhile, Aphria led the TSX laggards with a nearly-36-per-cent drop. Hexo Corp., Aurora Cannabis Inc., Cronos Group Inc., and Canopy Growth Corp. all fell more than 20 per cent on the day.
Trading volume on OTC Markets demonstrated a strong start to 2021, with crypto and cannabis-related companies dominating the top trading activity.
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