It doesn’t start well ! For the past year, the marijuana industry has been an absolute train wreck.

Since the industry exploded higher during the first quarter of 2019, virtually every pure-play cannabis stock has lost between 50% and 95% of its value.

Nasdaq write..

To our north, regulatory-based supply issues are predominantly to blame, with Health Canada slow to approve cultivation and sales licenses, and Ontario (Canada’s most-populous province) struggling to assign dispensary licenses. Meanwhile, in the U.S., high tax rates on legal weed have made it difficult for licensed producers to complete with black-market growers. And, as the icing on the cake, obtaining financing for North American pot stocks has been hit and miss.

But there is one exception to the rule: Innovative Industrial Properties (NYSE: IIPR).

Although real estate investment trust (REIT) Innovative Industrial Properties (also known as IIP) is down ever so slightly over the trailing 12 months, it’s practically doubled in value over the past 18 months, and is up close to 200% since April 2018. Being the most profitable pure-play pot stock on a per-share basis makes these gains easy for investors to digest.

Last week, Grizzly Research released a 36-page report highlighting the many ways it believes IIP is worse than WeWork. 

The primary gist of Grizzly’s report is that IIP has acquired a low-quality portfolio of assets in two respects. First, Grizzly’s research appears to indicate that IIP grossly overpaid for the assets it’s acquired, which in turn has inflated the company’s book value. While book value isn’t something investors pay close to attention to for most companies, it can have a lot more bearing with a REIT. In fact, Grizzly suggests these overinflated acquisitions are “bordering in our opinion on fraud.”

Read full Nasdaq report.

The Grizzly 36 Page Report