Earnings Season and the Future of Marijuana Penny Stocks
August 2023 is a good time for individuals interested in the volatile world of marijuana stocks. Because of the growing legality and acceptability of cannabis products, these emerging companies, frequently distinguished by low stock prices, have attracted considerable interest. As investors look for new opportunities, it’s critical to identify the top marijuana penny stocks primed for growth in this turbulent but potentially lucrative industry. With creative developments, evolving regulatory landscapes, and shifting customer preferences impacting the sector, discerning investors are directing their attention to companies that demonstrate excellent fundamentals and a strategic understanding of market trends.
Regarding marijuana penny stock investing, paying close attention to technical indicators and risk management becomes critical. Because these stocks are volatile, a thorough examination of price patterns, trading volumes, moving averages, and other technical indicators that can provide insight into anticipated price changes is required. When used wisely, these indicators can assist in making educated judgments and identifying appropriate entry and exit opportunities. However, the inherent volatility highlights the significance of a well-planned risk management strategy, including position sizing, stop-loss orders, and diversification. Navigating the world of marijuana penny stocks in August 2023 requires embracing growth opportunities while reducing dangers through a disciplined and systematic trading technique.
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Keep an Eye on These Marijuana Stocks During Earnings
- Glass House Brands Inc. (OTC: GLASF)
- Planet 13 Holdings Inc. (OTC: PLNHF)
- MariMed Inc. (OTC: MRMD)
Glass House Brands Inc.
Glass House Brands Inc., a vertically integrated hemp and cannabis company, serves one of the country’s fastest-growing industries. The company focuses on the California market, where it develops distinctive eco-friendly brands to meet consumers’ needs across various industries. Mama Sue Wellness, Glass House Farms, and Forbidden Flowers are some of the company’s well-known products. In September 2021, the corporation intends to invest in a 5.5 million square foot greenhouse in Southern California. The new company’s chief financial officer is Mark Vendetti. PLUS, a well-known California edibles firm, was purchased for $25.6 million in December. After the market close, the company will report its second quarter 2023 results on August 14th.
First Quarter 2023 Financial Highlights
Glass House reported net revenues of $29.0 million in the first quarter of 2023, a 108% rise over the same period in 2022 but a 10% sequential dip over the same time in 2022, primarily due to seasonality. This performance exceeded our Q1 projection range of $27 million to $29 million. Furthermore, wholesale biomass revenue climbed 182% from the first quarter of 2022 to the fourth quarter of 2022 but declined 7% sequentially. Product sales rose 179% year on year in the third quarter, reaching approximately 49,923 pounds of equivalent dry weight.
Consolidated gross profit increased from $2.3 million, or 17%, in the first quarter of 2022 to $10.2 million, or 32%, in the fourth quarter, to $12.0 million, or 41% of net revenues. This gross margin percentage has been at its greatest level since the second quarter of 2022, the final quarter before wholesale prices began to decline precipitously.
Q2 2023 Outlook
The company estimates revenue of $38 to $40 million. Due to the ongoing unfavorable retail environment, it expects CPG and Retail revenue to be identical to Q1. The rise above Q1 23 is primarily due to a seasonal increase in biomass output due to higher sunshine levels in Q2 compared to Q1. Based on trends through early May, we expect the average wholesale biomass selling price to be $325 per pound.
GLASF Stock Performance
GLASF stock ended at $3.25 on August 8th, up 10.54% in the last five days of trading. In this case, the stock has been trading in a 52-week range of $1.78-$4.51. GLASF stock is up 70.16% year to date.
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Planet 13 Holdings Inc.
Planet 13 (www.planet13holdings.com) is a cannabis firm with award-winning cultivation, production, and dispensary activities. It has offices in Las Vegas and Orange County, California. Planet 13 also has a Florida medical marijuana treatment center license and a preliminary Illinois Social-Equity Justice Involved dispensary license. Planet 13’s mission is to establish itself as a renowned brand known for its high-quality cannabis retail operations and new product development. After the market close, the company will release its second quarter 2023 results on August 9th.
Planet 13 Announces Q1 2023 Financial Highlights
- Q1 2023 Revenue of $24.9 million, compared to $24.8 million in Q4 2022
- Q1 2023 Net loss of $6.3 million
- Q1 2023 Adjusted EBITDA of $0.68 million
Planet 13 announced in December that a consumption lounge would soon be a part of the iconic Las Vegas SuperStore experience. In January, the business launched its fourth marijuana store on Florida’s “Fun Coast” in Port Orange. Port Orange, which has a population of over 600,000 people, is a major tourist destination that includes Deltona, Daytona Beach, and Ormond Beach.
PLNHF Stock Performance
PLNHF stock closed on August 8th at $0.5599, down 1.94% in the last month of trading. The stock has a 52-week price range of $0.52-$1.99 and is down 8.21% year to date. According to analysts at CNN Business, PLNHF stock has a 12-month forecast median target of $1.29 per share. In this case, this would represent an increase of 129.96% from its last trading price of $0.5599.
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MariMed Inc.
MariMed Inc., a multi-state cannabis operator, works daily to enhance people’s lives through high-quality goods, actions, and ideals. From seed to sale, the Company develops, owns, and operates state-licensed cannabis facilities that are models of excellence in horticultural concepts, cannabis production, cannabis-infused products, and dispensary operations. MariMed has an experienced management team, which has resulted in the continuous expansion and success of the Company and its managed business divisions. Betty’s Eddies, Nature’s Heritage, InHouse, Bubby’s Baked, K Fusion, Kalm Fusion, and Vibrations: High + Energy are just a few of the top-selling and award-winning products and brands from the Company.
Second Quarter 2023 Financial Highlights
Here are the summarized financial highlights for the Company’s consolidated results (in millions, except percentage amounts) for the three and six months ended June 30, 2023, and 2022:
- Revenue: $36.5 million (Q2 2023) compared to $33.0 million (Q2 2022); $70.9 million (H1 2023) compared to $64.3 million (H1 2022).
- GAAP Gross margin: 45% (Q2 2023) and 45% (H1 2023) compared to 45% (Q2 2022) and 50% (H1 2022).
- Non-GAAP Gross margin: 46% (Q2 2023) and 46% (H1 2023) compared to 46% (Q2 2022) and 50% (H1 2022).
- GAAP Net (loss) income: ($0.9 million) (Q2 2023) compared to $1.9 million (Q2 2022); ($1.6 million) (H1 2023) compared to $6.1 million (H1 2022).
- Non-GAAP Net income: $0.6 million (Q2 2023) compared to $5.5 million (Q2 2022); $0.9 million (H1 2023) compared to $12.3 million (H1 2022).
- Non-GAAP Adjusted EBITDA: $6.3 million (Q2 2023) compared to $8.9 million (Q2 2022); $13.4 million (H1 2023) compared to $19.3 million (H1 2022).
- Non-GAAP Adjusted EBITDA margin: 17% (Q2 2023) and 19% (H1 2023) compared to 27% (Q2 2022) and 30% (H1 2022).
2023 FINANCIAL GUIDANCE
MariMed remains committed to its proven strategic growth plan and continues to operate some of the best facilities in the cannabis industry. The Company’s guidance for the full-year 2023 is as follows:
- Revenue of at least $150 million;
- Gross margin in line with the full year 2022, which was about 48%;
- Non-GAAP Adjusted EBITDA of $32 million to $35 million;
- Capital expenditures of $30 million.
MRMD Stocks Performance
MRMD stock closed at $0.3261 on August 8th, down 20.46% in the past month of trading. The stock has a 52-week price range of $0.28-$0.6940 and is down 8.45% year to date. According to analysts at CNN Business, MRMD stock has a 12-month average price target of $1.00 per share. In this case, this would represent an increase of 206.65% from its last trading price of $0.3261.
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Trading Top Pot Stocks In 2023
Top marijuana penny stocks offer short-term thrill and long-term promise. Navigating demands a balanced approach with careful risk management. Companies’ allure due to low cost and growth potential requires careful consideration. Risk management, especially short-term, is key. Define entry/exit points, set stop-loss, and avoid heavy investment. Penny stocks are volatile; they adapt fast using analysis for informed decisions.
Long-term cannabis growth appeal requires robust risk management commitment. Diversify across industries for portfolio stability. Rigorous research, select growth potential. Set clear goals and disciplined entry/exit to ease the market impact. Profit and protect via patience and risk strategies.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
