Is Now The Time To Invest In Top Cannabis Stocks In 2021?
Are you watching top marijuana stocks wondering if now is a good time to buy? At the present time, many leading cannabis stocks are trading near their lowest market value this year. In June the month began with some upside for most of the cannabis sector. But negative market sentiment has left the top pot stocks trading lower in the market.
One area, that has seen significant gains in 2021 is top marijuana penny stocks. In the first quarter of 2021 marijuana penny stocks saw the most upward momentum in the market. After February 10th the cannabis sector began a sharp decline that has continued for over 4 months now. For those not familiar with penny stocks they are any stocks trading under the $5 mark. In general penny stocks are a high-risk part of the market.
This makes it extremely important to do your due diligence before investing. Essentially, researching a company and understanding how the stock performs in the market is key to making a good investment. In 2021 top marijuana penny stocks gained worldwide notoriety when a few top marijuana penny stocks were discussed among the meme stocks. In January and February Reddit and Robinhood, investors began to push some of the top marijuana penny stocks to watch higher in the market.
Top Pot Stocks In June 2021
Now as the markets continue to recover some of the value lost in last week’s trading it could be time to find the best marijuana penny stocks for your watchlist in June. For the short term investing in cannabis penny stocks present an opportunity to see returns rapidly from current trading levels. With some events that could ignite some upward momentum in the cannabis sector currently present the potential in marijuana penny stocks is interesting for investors.
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At the present time, more traders prefer investing in this area of the market on a short-term basis. With this in mind, we can begin to take a closer look at some marijuana penny stock that could hold value for investors. Currently, the market value for most top marijuana stocks to buy could produce significant gains in 2021. As June begins to come to a close here are 2 marijuana penny stocks to add to your watchlist right now.
Marijuana Penny Stocks To Watch
- Sundial Growers Inc. (NASDAQ:SNDL)
- Greenlane Holdings, Inc. (NASDAQ:GNLN)
Sundial Growers Inc.
Recently, Sundial surprised investors with its first positive earnings report from operations in the company’s history. Specifically, the company saw first quarter 2021 earnings of C$1.7 million compared to a loss of C$32.7 million in Q4 of 2020. Additionally, the company reported a first-quarter positive adjusted EBITDA of C$3.3 million compared to a loss of C$5.6 million sequentially. Also, in the first quarter of 2021 Sundial delivered high-quality inhalable cannabis and invested in its library of premium cannabis strains. Currently, the company managed to harvest its highest potency flower with Top Leaf’s LA Kush Cake producing an excess of 28% THC.
Another important factor is that Sundial has two main segments they are focusing on for-profits their cannabis operations and other company investments. Recently, the company realized C$2.8 million in interest and fee revenue from long-term loans to third parties. In addition, Sundial has C$12.9 million in realized and unrealized gains from investments in securities. At the present time, Sundial has been getting renewed interest from Reddit and Robinhood investors in June. While other leading Canadian cannabis companies deliver subpar earnings, this company is holding its own now.
SNDL stock closed on June 21st at $0.9129 up 92.80% year to date. In February SNDL stock reached a 52-week high of $3.96 but is down 13.88% in the last five days. According to analysts at CNN Business SNDL stock has a 12-month median price target of $0.71 per share. This estimate would mean a decrease of 22.29% from its current trading level. For this reason, SNDL stock may be in a position to see some more downside this month.
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Greenlane Holdings, Inc.
Recently becoming one of the largest cannabis accessories companies serving the global market is Greenlane Holdings, Inc. Primarily the company is a platform that sells accessories, child-resistant packaging, and specialty vaporization products in the US. Currently, Greenlane has a customer base of more than 11,000 retail locations across the world. The company recently acquired a company that gave it a much larger company footprint globally. Recently Greenlane announced it has merged with KushCo Holdings, Inc. (OTC: KSHB) in an all-stock deal creating a new provider of cannabis ancillary products and packaging. As it stands the combined companies are projected to have a pro forma revenue of around $310 – $330 million in 2021.
Greenlane released its first-quarter 2021 financials and has had a decent start in 2021. Specifically, Greenlane Brand sales set back-to-back quarterly sales records and account for 25% of the company’s total revenue. In the first quarter of 2021 Greenlane Brands saw sales of $8.5 million. Greenlane delivered total revenue of $34 million in Q1 2021 compared to $33.9 million in Q1 2020. As the company comes closer to closing the merger this could be a good opportunity to find an ancillary investment in the cannabis market.
GNLN stock closed on June 21st at $3.99 almost flat year to date. In February GNLN stock saw a high of $8.73 and is currently up 16.33% in the past month. According to analysts at Tip Ranks GNLN stock has a 12-month average price target of $6.67 per share. In essence, this would represent an increase of 68.86% from its last trading levels. With this in mind, GNLN stock could be a better option to invest in than other more popular meme stocks right now.
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