Thursday, August 28, 2025

Analyst Reverses ‘Never Just One Cockroach’ Stance on Verano Holdings, Goes Long After $50M Buyback Announcement

Analyst Doug Kass is now bullish on Verano Holdings (NEO: VRNO) just two short years after saying that “there is never just one cockroach” while describing the company’s issues in 2022. The reason: “a sizeable” share buyback.

In April 2022, Verano postponed its fourth-quarter and full-year financial results because of what it described as an accounting issue. The issue, the company said, had “to do with one transaction in a single dispensary that happened in 2019,” and clarified that it had “no bearing on 2021” just that it was transitioning to a new auditor and therefore “converting three years of IFRS financials to US GAAP.”

Regarding this, Kass said that he has a “long-held rule that regardless of the ‘degree’ of the accounting issue or dispute I immediately sell,” adding that he has “ZERO tolerance rule on accounting debates, disagreement and/or infractions, particularly when it has to do with a disagreement between a company and an auditor.”

But these days, he’s singing a different tune. Verano on Monday announced a $50 million share repurchase program, signaling the company’s strong financial position, which contrary to ‘having not just one cockroach,’ has shown consistent revenue growth.

He did say that he hoped he was wrong back in 2022, as WeedStreet420 captured in their tweet above.

“Decades of investing has taught me that ‘there is never one cockroach’ It is far better to err on the side of conservatism by jettisoning companies that have announced ‘accounting issues’ My experience is that they are rationalized and often turn into something else. Hope wrong,” Kass wrote.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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