LEEEF Must Be a Buy

I last wrote about Leef Brands on 12/14, and the stock has dropped 31% since then. I looked at some good news but thought LEEEF was still a bad cannabis stock. Since then, cannabis stocks have dropped a lot, with the Global Cannabis Stock Index declining 19.7% and MSOS plunging 26.4%. LEEEF, down more, must be a buy, right? Well, no!

Why LEEEF Is Not a Buy

For those who think LEEEF is down a lot, it is not. Let me updated the chart I shared in that last piece:

So, LEEEF is down a little, but MSOS is down a lot more! Even looking at just the 2026 return, which is down 16.6%, this is not that much more than MSOS, which has dropped 7.5%. Looking at the low from last April of $0.1041, LEEEF is up 24.9%. This does trail the big rally in MSOS of 116.3%, but MSOS is priced ridiculously in my view. Be careful if it tests $0.10!

The chart is just part of the story. In that last article in December after the good news about debt conversion for equity, I pointed to the very high valuation. The market cap was then $46 million, and, at this lower price, it is now $32 million. Again, the company burns cash and has negative book value.

As I concluded that last article, I pointed out that the former analyst at a firm covering cannabis stocks is there now, and he pumps the stock regularly and loudly. There are no analysts covering the stock, and it is very thinly traded. It is listed in Canada, files with Canada and not the SEC, and it reports numbers in Canadian dollars.

Conclusion

The cannabis sector is very tough right now. The stocks are generally lower to begin 2026, and the bear market turns five years old in just a few weeks. Things may improve, but I think that there are much better ideas for investors than LEEEF. While it has dropped a lot, it is no bargain and is not a Buy.