Each week, I begin the New Cannabis Ventures newsletter with some unique perspective. I wanted to share this week's intro, as it includes a graphic that I think everyone will find interesting.
A little more than a year ago, noting how quickly the publicly-traded cannabis stocks were beginning to track the real cannabis industry, we debuted the Public Cannabis Company Revenue Tracker, which is professionally managed by New Cannabis Ventures. Traders, investors and hedge funds alike have latched on to the data in this tracker to better understand the imbalance between cannabis companies operating within North America. With the completion of earnings season this week, we note that there are now 13 companies that generated US$10 million or more in their most recently reported quarter. Nine of these companies report in USD, while the other four report in CAD.
While we believe that revenue levels and growth rates are the primary metric investors are tracking in order to judge whether a company is even worth looking at to begin with, we expect the focus will start to include measures of profitability in 2019 as the industry continues to grow. Already we have noticed market participants doing a better job at no longer being misled by silly penny stock press releases, but instead starting to better evaluate and understand financial statements. For those who have been following us, you know we are excited about more diligent investors.
Among the thirteen companies below, we note that there are some extreme differences, even for those that are similar operationally. The large revenue producers include four different types of companies, including four Canadian licensed producers (LPs), six American multi-state operators (MSOs), two CBD from industrial hemp companies and one ancillary company.
We aren't going to weigh in on the individual companies ...