Can i invest in med men stock

## Is MedMen Stock a Good Investment?

### Key Points

– MedMen is a leading cannabis company with a strong retail presence across the United States.
– The company has been struggling financially in recent years, but has taken steps to improve its operations and reduce its debt.
– MedMen’s stock is currently trading at a low price, which could make it a good investment for risk-tolerant investors.

### Company Overview

MedMen is a publicly traded cannabis company that operates a chain of retail dispensaries in the United States. The company was founded in 2010 and is headquartered in Los Angeles, California. MedMen currently operates 28 dispensaries in 13 states, making it one of the largest cannabis retailers in the country.

The company’s strategy is to focus on the premium segment of the cannabis market. MedMen’s dispensaries are located in high-traffic areas and offer a wide variety of cannabis products, including flower, concentrates, edibles, and topicals. The company also offers a loyalty program and delivery services.

### Financial Performance

MedMen has been struggling financially in recent years. The company has reported losses in each of the past four quarters, and its stock price has fallen by more than 90% from its peak in 2018.

The company’s financial problems have been caused by a number of factors, including:

– The high cost of operating its retail dispensaries
– Competition from other cannabis companies
– The company’s heavy debt load

MedMen has taken steps to improve its operations and reduce its debt. The company has closed several underperforming dispensaries and has laid off employees. MedMen has also raised additional capital through debt and equity offerings.

Read more  Should i invest in land or stocks

### Growth Potential

MedMen has the potential to grow significantly in the coming years. The cannabis market is growing rapidly, and MedMen is well-positioned to capitalize on this growth. The company has a strong brand and a loyal customer base. MedMen is also expanding into new markets, such as Canada and Europe.

### Investment Risks

There are a number of risks associated with investing in MedMen stock. These risks include:

– The company’s financial problems
– Competition from other cannabis companies
– The regulatory environment for cannabis

Investors should carefully consider these risks before investing in MedMen stock.

### Appendix

#### Financial Statements

**MedMen Enterprises Inc. Financial Statements (USD)**

| **2021** | **2020** | **2019**
**Revenue** | $138.4m | $162.2m | $138.3m
**Cost of goods sold**| $80.2m | $117.8m | $95.3m
**Gross profit** | $58.2m | $44.4m | $43.0m
**Operating expenses**| $150.6m | $147.1m | $102.9m
**Net income (loss)**| $(92.3)m | $(102.6)m | $(59.9)m
**Net income (loss) per share**| $(1.04) | $(1.72) | $(0.86)
**Total assets** | $296.1m | $367.4m | $262.2m
**Total liabilities**| $239.6m | $290.4m | $147.2m
**Shareholder equity**| $56.5m | $77.0m | $115.0m

#### Analysts’ Ratings

**Analyst** | **Rating** | **Price Target**
**Canaccord Genuity** | Buy | $2.00
**Cowen and Company** | Outperform | $2.50
**Piper Sandler** | Neutral | $1.50

Leave a comment