Are You Trading These Canadian Marijuana Stocks?
With marijuana stocks and Tech stocks recovering in the market, mid-September is beginning to look like a good month. Although most pot stocks are seeing a pullback some are suffering more than others. While some cannabis companies like Trulieve Cannabis Corp. (OTC:TCNNF) have seen a tremendous upside in the market rising over 100% year to date. Yet other pot stocks to watch like The Valens Company Inc. (OTC:VLNCF) have dropped in market value by 1oo%. Some of these fluctuations are directly related to the COVID lockdowns. However other companies in the cannabis industry are being affected by their negative financials.
With the government deeming cannabis essential the demand for it has increased greatly. This demand for cannabis has played out well for the industry and marijuana stocks. Although the market as a whole is coming off all-time highs, recovery for other marijuana stocks has varied across the board in the cannabis industry. As the market corrects itself this might present a good entry point for investors. Currently, the cannabis sector is heading into a future of economic growth making these 2 marijuana stocks below worth watching.
Marijuana Stock To Watch: A Canadian Cannabis Company
Aurora Cannabis Inc. (NYSE:ACB) is one of the biggest Canadian pure-play pot stocks to watch in the market. Located in Edmonton, Canada, ACB Stock has gained extreme popularity with new investors from the Robinhood Trading App. This is a good move for Aurora and has created excitement from being one of the only marijuana stocks that can be traded on the popular app. Since marijuana in the United States is not federally legal and does not trade on a major exchange, US marijuana stocks are unable to be purchased by investors on the app. This leaves only Canadian marijuana stocks to invest in.
This Popularity helped Aurora gain notoriety but has not translated into gains in the stock price. With Aurora’s stock doing 1-12 reverse stock split back in May, the stock has been pretty volatile since. Aurora‘s stock has been underperforming and has now started to try making changes to its balance sheet. In a press release earlier this month Aurora announced a new CEO and has been working to restructure its operations. Aurora is definitely a pot stock to watch once it gets its act together and begins to show some growth and positive earnings, and its current trading value seems to be stabilizing.
A Profitable Canadian Marijuana Stock To Watch
Aphria Inc. (NASDAQ:APHA) is another Canadian pot stock to watch with possible market potential. Aphria is a vertically integrated cannabis company, that cultivates and sells a variety of cannabis products. Aphria has a lot of potential as a business due to the legalization of derivatives in Canada back in 2019. In the Canadian cannabis market where other marijuana stocks are struggling to become profitable APHA stock has seen a positive EBITDA for five consecutive quarters.
This pot stock is reporting a revenue jump of 129% to around CA$543 million. With these numbers, Aphria beats some of its larger predecessors like Canopy Growth Corp. (NYSE:CGC), that increased revenue by 76% to only CA$399 million for fiscal 2020. Many Analysts contribute Aphria’s success to its new CEO Irwin Simon who took charge in early 2019. With his leadership, Aphria has since then focused on shifting to a new business model that maintains a tighter balance sheet. With APHA stock currently trading at around $1.50 less than its 52 weeks high, the stock has upward potential making it a Canadian marijuana stock to watch.
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