Wednesday, May 05, 2021
Driven By Stem (STMH)(STEM:CA)
Moving Into Michigan
Stem Holdings Inc is engaged in the purchasing, improving, and leasing of properties and finance assets which are operated by third parties and are used for the cultivation and retail sale of marijuana. Its properties includes 42nd Street, and Mulino Farm which are used for agriculture. The company generates its revenue in the form of rental income from tenants.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Michigan Entry. Stem has teamed up with Organic Guyz, a Michigan cannabis company, for the opening of a dispensary in Kalamazoo, Michigan. The location is expected to open in June. In addition, Stem will introduce its Budee e-commerce and delivery platform to service the entire state. Although details of the relationship were not released, we view the expansion as a positive for the Company and in-line with Stem’s stated growth plans.
Attractive Market. Total cannabis sales are projected to top $1.2 billion this year in Michigan, a state that only legalized adult use recreational in 2018 and which saw roughly $500 million of adult recreational sales in 2020. At the end of 2020, the state had just 260 recreational dispensaries. And with just 100 of the state’s 1,764 communities permitting recreational sales according to the …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
