Could The Cannabis Sector Recover In October?
Are the top marijuana stocks a wise choice for October investing? Many important cannabis equities have hit new lows in this month’s trade, mirroring the general market’s decline. In general, the price of Canadian marijuana equities has fallen precipitously this year. Canadian marijuana companies saw a dramatic value fall over the first half of 2022. One of the first parts of the marijuana industry to benefit from any momentum may be the Canadian cannabis market.
The US federal cannabis legalization delays have had a substantial impact on market value, and LPs are currently having difficulty turning a profit in Canada. The fact that Canadian cannabis businesses are listed on prominent US stock exchanges attracts investors. Because of this, any industry development can start with Canadian cannabis companies before expanding to the rest of the market. For your October list, let’s take a closer look at 3 of the top marijuana stocks in Canada.
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Best Canadian Marijuana Stocks For Your Watchlist Right Now
- Canopy Growth Corporation (NASDAQ: CGC)
- Tilray Brands, Inc. (NASDAQ: TLRY)
- Village Farms International, Inc. (NASDAQ: VFF)
Canopy Growth Corporation
Canopy Growth has built a strong reputation as one of Canada’s top producers of cannabis and products derived from it. At the present time, the company’s hemp- and cannabis-based goods are mostly sold in the US, Canada, and Germany. CBD alcoholic beverages will be offered in the US starting in 2021 as a result of a partnership between Canopy and Southern Glazers Wine & Spirits. In addition, to increase the variety of products it distributes in Canada, Canopy acquired Supreme Cannabis Company, Inc., a premium cannabis business. The business has unveiled Whisl, a cutting-edge CBD vape that can help you maintain control of your mood all day long.
The company published its financial 2023 first-quarter results on August 5. The information shows that the $110 million in net revenues for the first quarter of FY2023, when compared to the same period in FY2022, decreased by 19%. Due to a planned shift in the company’s focus on higher margins, premium, and mainstream items, value flower sales in the Canadian recreational cannabis market fell. This decline was the cause of the $66 million total global cannabis net sales in the first quarter of FY2023, which were 29% lower than the same period the previous year. The non-cash fair value adjustments and a $1,725 million impairment of goodwill were the main causes of the $2,088 million net loss in the first quarter of FY2023, which was an increase of $2,478 million over the first quarter of FY2022.
The corporation wants to strengthen its position in Canada’s high-end industries for the fiscal year 2023. The company also intends to offer its products abroad, particularly to Canadian leisure enterprises. Excluding costs associated with the United States, the company forecasts that these operations will generate positive Adjusted EBITDA in FY2024.
CGC Stock Performance
CGC stock closed at $2.59 on October 18th up 4.86% in the past five days of trading. Currently, the stock has a 52-week price range of $2.13-$15.96 down 70.33% year to date. According to analysts at CNN Business CGC stock has a 12-month median price target of $2.22 per share. This estimate would be a 14.46% decline from its last trading price of $2.59.
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Tilray, Inc.
Tilray, Inc. is a multinational cannabis consumer packaged goods (CPG) company with operations in the US, Canada, Europe, Australia, and Latin America. As a market leader in Canada, the company has established a reputation as one of the greatest cannabis enterprises globally. To expand its business, Tilray is getting ready to enter the US market. Tilray was the first business to grow and market medical marijuana in Germany. The company claims that meals and beverages containing CBD infusions are in high demand in the US and Canadian markets. In 2021, Tilray and Great North Distributors made the decision to work together to promote the growth of Canada’s legal marijuana sector.
Tilray released financial statistics for the fiscal year 2022 that set records at the end of July. Revenue increased by 8% to $153 million and by 22% to $628 million overall in the fourth quarter of 2022. The Company anticipates its operating business divisions would generate positive free cash flow and Adjusted EBITDA of between $70 and $80 million in the fiscal year 2023. It’s interesting to note that Tilray reported a net loss of $457.8 million in the fourth quarter as opposed to a profit of $33.6 million in the same quarter the year prior. In February, the company in Malta began selling medical marijuana products.
By acquiring the vast majority of the convertible notes issued by MedMen, Tilray has strengthened its position in the US cannabis industry. In addition, Southern Glazer’s Wine & Spirits will market CBD-infused beverages in the US, the business announced on August 3. Tilray will announce its financial results for the first quarter of its fiscal 2023 on October 7, 2022.
TLRY Stock Performance
On October 18th the shares of TLRY closed at $3.38, up 5.96% in the past month of trading. The 52-week price range for the stock is $2.65-$13.95 and is down 51.92% year to date. According to CNN Business experts, TLRY stock has a 12-month consensus price objective of $3.75 per share. In this case, this represents an 11.11 percent increase over the previous trading price of $3.38.
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Village Farms International, Inc.
Village Farms International, Inc. and its affiliates produce, market, and distribute greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. The business also conducts CBD and cannabis-related business in the US and Canada. One of the biggest cannabis businesses in North America is Pure Sunfarms, a fully-owned subsidiary of Village Farms. A delta 2 greenhouse with a cannabis production license has been granted to Pure Sunfarms, doubling its capacity for output. At www.villagefarms.com, Village Farms debuted a brand-new website and logo last year.
The total revenues for the second quarter of 2022 increased overall by 18% compared to the same period the previous year, reaching $82.9 million, according to the company’s financial report, which was made public on August 9. The Canadian cannabis company’s net revenues also rose by 37% sequentially and 20% annually, setting a new quarterly high. Pure Sunfarms is the most well-known brand of dried flowers now available in Canada. The company’s reported combined net loss of $36.6 million, or $0.41 per share, includes an impairment charge for Balanced Health Botanicals’ goodwill and intangible assets of $29.8 million. Since acquiring EU GMP certification in March, Pure Sunfarms has been permitted to export cannabis goods to European markets. Pure Sunfarms and NOYA will also import Cookie’s cannabis concentrates into Canada.
VFF Stock Performance
VFF stock closed at $2.00 on October 18th down 17.01% in the last month of trading. Currently, the stock has a 52-week price range of $1.89-$9.52 and is down 68.82% year to date. According to analysts at CNN Business VFF stock has a 12-month median price target of $5.50 per share. In this case, this would represent an upside of 175% from its last trading price of $2.00.
Canadian Pot Stocks And Q4 Investments
It can be difficult for investors to start making long-term investments given the current market instability. Canadian LPs can be a better option for short-term investments due to their high level of price volatility. In general, it is believed that cannabis stocks have a higher risk-reward ratio. Before making an investment, you should do your own research on the company. Information on the top businesses in a given industry may be found in press releases and financial reports from a company. In general, your trading performance might be enhanced by using technical indicators and understanding more about chart patterns. The best Canadian marijuana stocks to watch right now as investors prepare for higher volatility in 2022 are those that are mentioned above.
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