Green Thumb: The 'Trump Rescheduling Moment' Is Here
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Julian LinInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryGreen Thumb Industries is rated a 'Buy,' driven by GAAP profitability, a strong balance sheet, and potential regulatory catalysts.GTBIF stands to benefit significantly if cannabis is rescheduled, potentially normalizing tax rates and boosting net income from $31 million to $106 million YTD.The company’s conservative capital allocation, low leverage, and management discipline differentiate GTBIF amid sector volatility and persistent price compression.Valuation at 7x EV/EBITDA (or 14x normalized earnings) is reasonable if rescheduling occurs, but risks remain elevated if regulatory reform stalls. Stefan Tomic/iStock via Getty Images Green Thumb Industries (GTBIF) has surged as of late due to speculation that President Trump may reschedule cannabis via executive order. The sector had previously been beaten to a pulp due to stubborn price compression headwinds. Investors looking for a wayThis article was written byJulian Lin36.72K FollowersFollowJulian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways. Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with access to Julian 24/7. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of GTBIF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.