The upcoming vote in Florida on recreational cannabis has sparked significant interest among investors, who are keen to capitalize on potential opportunities in the burgeoning market. One company standing out is AYR Wellness (AYRWF), a cannabis operator with a strong presence in Florida. According to the Viridian Credit Tracker, AYR is considered a strong buy, boasting a compelling 20% yield. This high yield is fueled by AYR’s significant foothold in the Florida market, positioning it for substantial growth if recreational cannabis use is legalized. For investors looking to get ahead of the potential shift in the Florida cannabis landscape, AYR presents a compelling investment opportunity.
The Viridian Credit Tracker also suggests other strategic trades within the cannabis sector. For example, investors are advised to consider buying Cresco Labs (CRLBF) at a 12.6% yield and selling Curaleaf (CURLF) at 10.1%. This trade offers a 250 basis point yield upgrade, backed by Cresco’s strong financials and credit improvement. Investors seeking higher returns and credit strength should consider this option.
While TerrAscend (TRSSF) offers a 12% yield, the tracker recommends selling it. Despite being a significant player in the cannabis industry, TerrAscend’s lower yield and limited exposure to Florida’s growth potential make it less appealing compared to AYR.
Another notable observation is the financial situation of Cannabist (CCHWF). While the spreads among top cannabis stocks are attractive, Cannabist’s credit rating is considered the weakest due to liquidity concerns following recent asset sales. Although potential improvements may occur in the future, its lower credit rating may limit Cannabist’s near-term upside.
Given the potential for significant expansion in Florida’s cannabis market, investors looking to maximize gains should consider the following pair trade: buy AYR at 20%, sell TerrAscend at 12%, and explore Cresco Labs at 12.6% versus Curaleaf at 10.1%. The outcome of the vote could dramatically alter the cannabis stock landscape. Taking action before this pivotal event could lead to substantial returns.
