September’s Cannabis Stocks: Top Stocks on the Radar
Welcome to the worldwide arena of marijuana stocks in the ever-changing cannabis sector, where the intersection of financial prospects and rising legality is creating a buzz unlike any other. As we approach September 2023, the stage is set for investors to investigate the top marijuana penny stocks with enormous growth potential. Technical analysis is critical in both day trading and swing trading methods in this volatile market, providing traders with vital insights into price movements and trends.
Technical analysis, with its charts and indicators, provides traders with a data-driven way to evaluate the performance of penny stocks. Understanding support and resistance levels, moving averages, and relative strength will help you make informed decisions in the highly unpredictable cannabis penny stock market, whether you’re a day trader searching for short-term gains or a swing trader looking for longer-term gains. In this fast-paced market, these tools are critical for spotting entry and exit points and managing risk.
The cannabis market in the United States remains fruitful for investors, with states gradually legalizing marijuana for medical and recreational purposes. Based on anticipated growth figures, analysts predict significant market expansion in the following years. As legal impediments are removed, the business is positioned for greater income, job creation, and innovation, making it an appealing sector for those hoping to profit from the nascent cannabis market. In this article, we will look at the top marijuana penny stocks to watch as September progresses, providing a glimpse into the exciting potential that awaits in this evergreen industry.
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Cannabis Stocks Worth Watching in September
- Planet 13 Holdings Inc. (OTC: PLNHF)
- MariMed Inc. (OTC: MRMD)
- MediPharm Labs Corp. (OTC: MEDIF)
Planet 13 Holdings Inc.
Planet 13 (www.planet13holdings.com) is a cannabis company that has won awards for its cultivation, production, and dispensary operations. Its offices are located 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 aims to become a globally recognized brand known for high-quality cannabis retail operations and novel product development.
Financial Highlights – Q2 – 2023
Operating Results
All comparisons below are to the quarter ended June 30, 2022, unless otherwise noted
- Revenue was $25.8 million as compared to $28.4 million, a decrease of 9.1%. The decline in revenue was driven by a decline in the average price of cannabis in Nevada, partially offset by an increase in wholesale revenue in Nevada.
- Gross profit was $11.9 million or 46.0% as compared to $13.8 million or 48.7%. The decline in gross profit was driven by a decrease in the average price of cannabis in Nevada and a greater percentage of revenue coming from lower-margin wholesale revenue.
- Total expenses were $15.4 million as compared to $15.6 million, a decrease of 1.6%. The decline in total expenses was driven by lower share-based compensation offset by higher professional fees associated with potential M&A.
- Net loss of $4.3 million as compared to a net loss of $2.0 million. The increase in net loss was driven by lower gross profit dollars as well as high one-time costs associated with potential M&A.
- Adjusted EBITDA of $3.0 million as compared to Adjusted EBITDA of $2.9 million. The higher Adjusted EBITDA margin was primarily due to improvement in the Company’s operating costs.
PLNHF Stock Performance
PLNHF stock closed on August 31st at $0.81, up 71.07% in the last week of trading. The stock has a 52-week price range of $0.451-$1.74 and is up 32.79% year to date. According to analysts at CNN Business, PLNHF stock has a 12-month forecast median target of $1.26 per share. In this case, this would represent an increase of 55.33% from its last trading price of $0.81.
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MariMed Inc.
MariMed Inc., a multi-state cannabis operator, strives to improve people’s daily lives through high-quality goods, deeds, and beliefs. The Company develops, owns, and runs state-licensed cannabis facilities that are examples of excellence in horticultural concepts, cannabis production, cannabis-infused products, and dispensary operations from seed to sale. MariMed has an experienced management team, which has resulted in the Company’s and its managed business divisions’ continual expansion and success. Betty’s Eddies, Nature’s Heritage, InHouse, Bubby’s Baked, K Fusion, Kalm Fusion, and Vibrations: High + Energy are just a few of the Company’s best-selling and award-winning brands.
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 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 $0.4245 on August 31st, up 45.13% in the past week of trading. The stock has a 52-week price range of $0.4-$0.075 and is up 19.17% 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 135.57% from its last trading price of $0.4245.
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MediPharm Labs Corp.
MediPharm Labs, founded in 2015, specializes in developing and manufacturing purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API), and advanced derivative products in an ISO standard-built clean room facility. In addition, MediPharm Labs has invested in an expert, research-driven workforce, cutting-edge technology, downstream purification processes, and purpose-built facilities with five primary extraction lines in order to provide its customers with clean, trusted, and precision-dosed cannabis products. MediPharm Labs formulates, develops (including sensory testing), processes, packages, and distributes cannabis extracts and sophisticated cannabinoid-based products to domestic and international markets via its wholesale and white-label platforms.
Second Quarter 2023 – Select Highlights
- Completed our first commercial delivery to the United States. The delivery was comprised of clinical trial material for a fully funded large-scale phase two clinical trial.
- On April 1st, 2023, MediPharm closed the acquisition of VIVO Cannabis Inc. (“VIVO”) in an all-equity business combination.
- Revenue has doubled versus the prior year with the incorporation of VIVO.
- Gross profit was positive for the third consecutive quarter. Largest Adjusted Gross Profit increase in company history and best adjusted gross profit since Q4 2019 at approximately 21%
- Successful integration of VIVO, including executing a restructuring and cost savings program that will save approximately $7M on an annualized basis as we progress towards our previously communicated synergy target of $7-$9M. (2)(3)(4)(5)
- Adjusted EBITDA(1) of negative $3.2M, an improvement of $3.2M or 50% versus Q2 2022, and remained consistent with Q1 2023 despite the incorporation of VIVO, which historically had an Adjusted EBITDA(1) of negative $2M per quarter.
- Strong balance sheet, relative to our peers, with $14.7M of cash, less than $3M of debt, and a plan to generate cash in the near term.
MEDIF Stock Performance
MEDIF stock closed at $0.0639 on August 31st, up 22.41% in the past week of trading. In this case, the stock has a 52-week price range of $0.28-$0.6940 and is up 31.21% year to date.
[Read More] Top Marijuana Stocks To Watch Right Now 2023
September’s Bud Blossoms: Top Cannabis Stocks to Monitor
Ultimately, September 2023 offers a bright picture for cannabis investors, with a diverse mix of penny stocks set for growth. The growing path of legalization, along with thorough technical analysis and the thriving US cannabis industry, forms a field of financial opportunity. As we delve into the intriguing realm of marijuana penny stocks, we must exercise caution and closely monitor market patterns.
Penny stocks can be volatile and speculative, so cautious research, risk management, and diversification are essential for investors. With the potential for significant gains and the cannabis industry’s continuous expansion, these top marijuana penny stocks are worth watching as September unfolds, providing a glimpse into the exciting prospects in this evergreen sector. Stay informed, be cautious, and may your cannabis stock investments be as lucrative as the industry.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
