Cannabis Stocks And Federal Marijuana Legalization And Banking Reform
Are you looking for ways to invest in top marijuana stocks before 2022? For most of 2021 cannabis sector has been experiencing market declines as the year has progressed. Currently trading at some of the lowest market value seen this year many of the best cannabis stocks to buy could have future potential for upside. This week JP Morgan has dealt another blow to top pot stocks with restrictions to US operations that are listed on the OTC Markets.
In general, this means all US MSOs are now restricted from investors that use JP Morgan’s services. Because US cannabis companies are still federally illegal, they are not able to trade on major US stock exchanges. This has left the US cannabis sector with a limited pool of retail traders to invest in American companies. JP Morgan is following other banking companies that have recently taken similar action including Credit Suisse.
Other trading apps like the popular Robinhood Markets, Inc. (NASDAQ: HOOD) also prohibit their users from trading OTC stocks denying access to top US cannabis stocks from a large pool of retail investors. But there are some US cannabis companies that trade on the major exchanges. Ancillary cannabis stocks are those companies that support the cannabis market without touching the actual plant. Because they trade on the major exchanges they may not be affected by recent restrictions.
Researching Companies And Making The Best Returns In 2021
Before investing in cannabis stocks it’s important for investors to do their own due diligence. In general, researching a company’s financial results and press releases can help you find the best-performing companies. In addition, studying how a stock behaves in the market can help you make the best entry points for your investments. Setting your stop loss and taking profit levels before making a trade is also a good way to minimize your losing trades and maximize your winning trades.
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As top cannabis stocks continue to show downside it could be time to make a list of pot stocks to invest in for 2021. This week has delivered some of the lowest stock prices pot stocks have seen since 2020. Although we have seen delays from the senate regarding federal cannabis reform it’s most likely this will happen no later than next year. Let’s look at 2 top cannabis stocks for your watchlist right now.
Top Marijuana Stocks To Watch Right Now
- Greenlane Holdings, Inc. (NASDAQ: GNLN)
- Charlotte’s Web Holdings, Inc. (OTC: CWBHF)
Greenlane Holdings, Inc.
Greenlane Holdings, Inc. is one of the largest cannabis accessories companies serving the global market. In general, the company sells premium cannabis accessories, child-resistant packaging, and specialty vaporization products in the US and international markets. At the present time, Greenlane has a customer base of more than 11,000 retail locations around the world. Recently, Greenlane completed the merger with KushCo Holdings, Inc. In October the company entered into an agreement to acquire DaVinci a leading developer and manufacturer of premium portable vaporizers.
On November 3rd the company announced preliminary third-quarter 2021 financials which forecast net sales of $40-$41 million. In addition, Greenlane is reporting an Adjusted Gross margin between 19% to 21%. Also, the company has a total cash balance of about $13 million. Greenlane is expected to release its Q3 2021 results on November 15th after the market close.
GNLN stock is trading at $1.78 on November 4th up 6.43% in the past five trading days. Currently, the stock has a 52-week price range of $1.68-$8.73 and is down 54.04% year to date. According to analysts at CNN Business GNLN stock has a 12-month median price target of $5.50 per share. In this case, this would represent an increase of 208.99% from its current trading price.
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Charlotte’s Web Holdings, Inc.
Next on the list is Charlotte’s Web Holdings, Inc one of the market leaders in Hemp CBD wellness products in the US. Primarily, the company has held its leading industry position in the US CBD market for years and continues showing growth. In specific, Charlotte’s Web has premium quality products made with American farm-grown hemp genetics. To highlight, the company manufactures this into hemp extracts and has the number one CBD brand in the US. Charlotte’s Web has distribution through more than 22,000 retail locations across the nation. In October the company announced retail expansions in California following the passing of Assembly Bill 45.
In August Charlotte’s Web reported its second-quarter 2021 results with revenue increased to $24.2 million versus $21.7 million year over year. Additionally, DTC eCommerce revenue increased 1.0% to $15.7 million equating to 64.9% of Q2 revenue. As a result, B2B revenue increased 37.7% year over year boosting gross profits to $15.8 million or 65.5% of consolidated revenue. The company has an adjusted EBITDA of $3.9 million and $27.1 million in cash. On November 15th the company is expected to release its third-quarter 2021 financials after the close.
CWBHF stock is trading at $1.58 on November 4th, down 18.04% in the past month. The stock has a 52-week price range of $1.534-$7.00 and is down 51.82% year to date. According to analysts at Tip Ranks CWBHF stock has a 12-month average price target of $3.25 per share. This forecast would represent an increase of 106.68% from its current trading price.
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