Are Top Marijuana Stocks Primed For Gains?
As we continue to see declines for top marijuana stocks in 2021 is it time to start a position? At the present time, recent events in Congress show there is bipartisan support for federal cannabis reform. Although it seems the process may take longer than cannabis investors would like to see it could be presenting an opportunity from current trading prices. One area of the market that has been hit hard in recent trading is Canadian cannabis stocks.
Because the Canadian cannabis market stands a lot to gain from entry into the US market these setbacks in federal policy have affected investor sentiment. This along with the fact that Canadian cannabis companies are not performing as well as US cannabis companies have hurt them in the market. In the past year, Canadian pot stocks have seen the most price volatility in the market.
After reaching new highs in February many pot stocks are now trading at levels seen before the November 2020 election. Most of the 2021 rally was due to the belief that Congress would get legislation passed this since this has not happened investors are looking in other areas for value. But from current trading prices, there could be some upside for many top cannabis stocks.
Researching The Top Pot Stocks To Invest In
Before investing in cannabis stocks, it’s important to research a company and follow how the stock performs in the market. Looking into earnings and press releases is a good way to find the best performers in any industry. In addition, studying trading charts and establishing the best entry for your position can help you achieve the largest returns. While most of the cannabis sector continues to see declines let’s look at 2 top Canadian marijuana stocks for your list next week.
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Best Canadian Cannabis Stocks For Your List In November
- Aurora Cannabis Inc. (NASDAQ: ACB)
- OrganiGram Holdings Inc. (NASDAQ: OGI)
Aurora Cannabis Inc.
First up let’s look at Aurora Cannabis Inc. a Canadian company that produces and distributes medical cannabis products globally. This year the company announced its entry into the US cannabis market through the acquisition of Reliva a CBD producing company in America. In addition, Aurora expanded its San Rafael ’71 portfolio with the launch of 3 new proprietary cultivars. Also important, the company delivered an $8 million shipment of cannabis to Israel. Primarily, the company is working on restructuring its balance sheet and has fulfilled the inaugural shipment to the French medical cannabis pilot program.
On November 9th Aurora announced its fiscal 2022 first-quarter results with total cannabis net revenue of $60.1 million compared to $54.8 million in Q4 FY21. Specifically, the company has an Adjusted EBITDA loss of $11.5 million. Aurora still is the #1 Canadian LP in the global medical cannabis market and says its business transformation plan is on track.
Words From The CEO
“During the quarter, total cannabis net revenue increased by approximately 10% sequentially, driven by our industry-leading and high margin global medical cannabis business. Our premiumization strategy also gained traction, as evidenced by 29% sequential revenue growth in our premium dry flower brands of San Rafael ’71 and Whistler, primarily driven by the launch of three new Coast cultivars.”
Miguel Martin, Chief Executive Officer of Aurora Cannabis.
ACB Stock Performance
ACB stock is trading at $7.10 on November 19th down 17.53% in the last five trading days. Currently, the stock has a 52-week price range of $5.85-$18.98 down 15.64% year to date. According to analysts at CNN Business, ACB stock has a 12-month median price target of $6.36 per share. This would be a downside of 10.45% from its current trading price.
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OrganiGram Holdings Inc.
Next up, OrganiGram Holdings Inc. is one of the leading licensed producers of cannabis and cannabis-derived products in the Canadian market. At the present time, the company is known for producing high-quality, indoor-grown cannabis products to both the medicinal and recreational markets. In general, Organigram is developing its international business partnerships increasing the company’s presence in the global cannabis industry. Additionally, the company is also growing its wholesale shipping of cannabis and sells products online. Recently, Organigram extended its SHRED product portfolio with high quality, SHRED’ems Gummies. Also, the company launched Edison JOLTS Canada’s first flavored high potency THC ingestible extracts.
OrganiGram produced 84 new SKUs since July 2020 as a part of revitalizing its products portfolio. To highlight, this includes two new high potency strains under the higher-margin Edison brand in Q3. In its latest report, Organigram saw third-quarter fiscal 2021 results with gross revenue up 51% sequentially to $29.1 million. Specifically, the company grew its adult-use recreational net revenue by 40% sequentially to $16.8 million in Q3 2021. Now, the company expects sequentially higher revenue and improved adjusted gross margins in Q4 2021. On November 1st the company provided a corporate update that’s show its Canadian market share growing from 3.9% in January 2021 to 7.7% in September 2021. The company will deliver its fourth-quarter and full-year fiscal 2021 results on November 23rd before the market opens.
OGI Stock Performance
OGI stock closed at $2.015 on November 19th down 13.52% in the past five trading days. The stock has a 52-week price range of $1.07-$6.45 and is up 51.50% year to date. According to analysts at CNN Business OGI stock has a 12-month median price target of $3.00 per share. In this case, this would represent an upside of 49.08% from its last trading price.
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