Curaleaf Holdings: Is This Cannabis Company A Buy Or Hold?
We’ve been analyzing cannabis stocks from a mid-term investor perspective, covering major players like Aurora (NASDAQ:ACB):, Canopy (NASDAQ:CGC):, and High Tide (NASDAQ:HITI), all listed on major exchanges.
Now, we’ll shift focus to the first case of a cannabis stock traded OTC, which is an extended situation for cannabis stocks.
Despite being a major industry player in the U.S., Curaleaf Holdings INC’s stock (OTC:CURLF) has been on a prolonged downtrend, dropping from a high of $5.50 in early 2023 to its current low near $1.70.The stock is traded over-the-counter (OTC), meaning it is not listed on major exchanges like the NYSE or NASDAQ, which on occasion results in lower trading volumes and less liquidity due to reduced visibility and accessibility for investors.
But this isn’t the case with Curaleaf, which normally trades with sound volumes. While most companies we’ve covered so far are recovering ground this April-May 2024, Curaleaf seems not to have found the bottom, having dropped 75% from its 2022 high of over $8.
Price Action
In the long run, price action shows three major situations:
- 2022-2023 Peak to Downtrend:
The stock’s decline from its 2022 peak aligns with broader industry challenges, likely tied to the cannabis sector’s regulatory and growth constraints. It reflects diminished investor confidence in Curaleaf’s growth potential or profitability. - Mid-2023 Stabilization:
The brief consolidation during …