If we had to pick the most complex investment themes we cover, synthetic biology and gene editing would be at the top. So would cannabis. Legalizing marijuana for adult use in various states while keeping things illegal at the federal level has created a very complex environment to navigate. As with any thesis, our goal is to find the market leader and place our bets. To do so, we isolated the top six multi-state operators (MSOs) and then started evaluating each.
Our simple screening method looks at metrics such as intangible assets on balance sheets (a lower number is better), ratio of cash to liabilities (more cash is better), and of course the absence of any red flags. So far, Trulieve appears to be the most desirable MSO based on these criteria.