Why is Liberty Health Sciences a Strong Buy?
The American Cannabis Operators Index increased by 46% in 2020 compared to 2019 which indicates it is time to do some serious research on the top-performing companies in the space. Liberty Health Sciences (OTC: LHSIF) has recently become one of the best penny pot stocks in this industry and the Florida-based company has a chain of dispensaries that sell premium branded cannabis products and is a major supplier of medical marijuana in the sunshine state. But why is Liberty Health Sciences a Strong Buy?
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Florida: The Sunshine Market
The cannabis market in Florida is booming and studies indicate Florida has the potential of becoming the largest marijuana market in the US. Although recreational marijuana is yet to get legalized there, about 66% of its citizens are already supporting the cause thereby validating the future availability of a huge TAM opportunity.
Liberty Health Sciences holds about 16% share in this booming market. With more expansions and new facilities, the number might get much bigger. In addition to this, the Florida marijuana market is still in its early stage, and having such a large market share in this stage would provide more competitive advantages as the market opens up further.
Thus, the transition of Florida from only a legal medical marijuana market to a much more promising legalized medical and recreational marijuana market can prove to be a complete game-changer for the company.
Extensive Growth Strategies for Liberty Health Sciences
By the end of the second quarter of the fiscal year 2021, Liberty Health Sciences operated through 26 dispensaries within the state of Florida and aims to have 9 more by the end of the fiscal year.
Providing big discounts and persuading people to purchase products is a smart way to grab new customers. New customers visiting the LHS stores are offered $75 off on purchases over $150. What a way to increase brand awareness and loyalty.
In addition to this, the company’s Lead Community Outreach Specialist also stated he has been working with the physicians in Central Florida to educate people about the benefits of cannabis products found in its stores.
To expand its operations in multiple other states, a few days ago Liberty Health strategically partnered with the Cannabis king Ayr Strategies and since then the stock has been soaring high. This agreement has enabled both the companies to operate in the states of Nevada, Massachusetts, Florida, Pennsylvania, Arizona, Ohio, and New Jersey. Access to those huge cannabis markets will definitely aid LHS in gaining more market share.
The combined experience and expertise of both companies can also leverage their operational demands. This acquisition is going to benefit LHS’ investors as well who would be receiving about a 94% premium on their shareholdings.
LHSIF: Strong Financials
Liberty Health Sciences has been a consistent performer since 2019 as more of its dispensaries started launching in the state of Florida. Sales for the Q2 of the fiscal year 2021 showed the company’s net sales for the quarter had improved by about 70% on a Y/Y basis. The above 500% rise in EBITDA over the year was indeed astonishing considering the economic depression the market was facing due to the current COVID-19 pandemic.
Liberty Health yet again managed to have a positive EBITDA that quarter when most of its peers were struggling with losses. The cash balance also showed it possesses sufficient liquidity in its operations and the resources available would be sufficient for reaching the target of 35 dispensaries by the end of the fiscal year.
Bottom Line: Why is Liberty Health Sciences a Strong Buy?
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Considering the aforementioned factors, and the demands for the decriminalization of cannabis across the US, it seems Liberty Health may continue on this trajectory in the coming years. Analysts believe the price target for this stock sits somewhere in the $2.00/share range. Considering LHSIF is currently trading below a dollar, now seems like the perfect time to pick up a couple discounted shares in this penny pot stock.
Cannin.com analysts first recommended this penny pot stock back in April of 2020. If you had taken our advice and purchased the stock, you now would have tripled your investment. While this stock was a slower burn than most of our other picks, 78% of our picks prove to be true within 30 days or less.
Why is Liberty Health Sciences a Strong Buy?
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