My best medical marijuana stock for 2021

Almost all cannabis companies with big ambitions are involved in the medical marijuana segment, given its relatively high margins.

One company in particular, however, has more potential than the others, according to Eric Volkman, veteran Motley Fool contributor. He reveals his medical marijuana stock pick for 2021 in this conversation with Cannabis and Health Bureau Chief Corinne Cardina Jurney during Motley Fool Live, recorded on December 22.

Corinne Cardina: Let’s talk about what you think is the best medical marijuana stock for 2021.

Eric Volkman: I appreciate Truly (OTC: TCNNF). Trulieve is, fundamentally, a Florida-based full-service medical stock that has made many inroads into this market. I’m not sure if it’s probably number 1 in Florida, but its market share has hit double digits. He seems to be constantly opening dispensaries statewide.

Keep in mind that Florida is a big state. Also, there are parts of it that are older in terms of demographics, the kind of demographics that would likely be more prone to or require medical marijuana and while expensive and keen to grow their footprint, they don’t. They didn’t pay attention, they didn’t overpay for the assets they bought. They do, which I would characterize on a regular and sensible basis, and this market still has room for growth.

Also, the South is not really a hotbed of marijuana legalization, that could change. We were talking just before the green wave, which includes the Mississippi which is not that far from Florida. Maybe that could help spark a mini green wave in the South, and if it does, Trulieve could be about to take advantage of it.

Nearby places like Georgia, for example, could also be a very good market. Especially in cities, in urban areas where the demographics are younger and I think there is a more receptive audience and potential clientele for their services. So Trulieve is something worth watching.

Of course, they are subject to the challenges and limitations of every marijuana business. But they handle it pretty well and they’re a little low-key, a little under the radar. As far as I know, they haven’t indicated any plans or a change in strategy to expand out of Florida, but I’m sure they’re at least thinking about it. This is the title worth watching, I think it is a title that will do relatively well [in 2021].

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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