Post-Turkey Day Picks: Marijuana Stocks with Sky-High Potential
The United States cannabis industry and top marijuana stocks are witnessing a remarkable expansion. Recent forecasts predict significant growth in the coming years. This surge is fueled by increasing legalization and societal acceptance. As a result, investors are keenly observing marijuana penny stocks. These stocks represent companies in the developing phase of the cannabis sector. They offer unique growth opportunities. However, their low share prices often reflect higher volatility and risk.
Trading marijuana penny stocks requires a strategic approach. Short-term traders mainly rely on technical analysis. This analysis helps in identifying market trends and potential entry or exit points. It involves studying stock charts and various market indicators. For successful trading, understanding these technical aspects is crucial. Traders often look for patterns and signals in stock movements. These insights guide their investment decisions.
Proper risk management is essential in dealing with marijuana penny stocks. These stocks can be unpredictable. Diversifying investments can mitigate risks. Setting stop-loss orders is also a common strategy. This approach limits potential losses. Investors should always be aware of the risks involved. They should invest only what they can afford to lose. Being informed and cautious is key in navigating the dynamic world of marijuana penny stocks.
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Leading Cannabis Penny Stocks for Late November Picks
- TerrAscend Corp. (OTC: TSNDF)
- Acreage Holdings, Inc. (OTC: ACRHF)
- MariMed Inc. (OTC: MRMD)
TerrAscend Corp.
TerrAscend is a well-known cannabis company in North America that operates in several states and mostly caters to the medical and recreational cannabis industries. They are committed to satisfying the various demands of their clients by offering premium cannabis goods, such as edibles, concentrates, and flower. A chain of dispensaries that are thoughtfully positioned throughout several states, with a notable concentration in Pennsylvania, New Jersey, and California, comprise TerrAscend’s retail footprint.
In the cannabis market, the company has a strong reputation thanks to its dedication to quality and innovation. TerrAscend’s business model is vertically integrated, meaning that they have control over every step of the supply chain, from distribution to cultivation. By taking this method, they can guarantee the quality and consistency of their products and set themselves up for growth in states where cannabis laws are still changing. TerrAscend is a prominent player in the rapidly growing cannabis market, drawing in both medicinal and recreational users. It has a strong presence in important states and focuses on providing a wide variety of cannabis products.
Third Quarter 2023 Financial Highlights
- Net Revenue was $89.2 million, compared to $72.1 million in Q2 2023 and $66.2 million in Q3 2022, representing an increase of 23.7% sequentially and 34.7% year-over-year.
- Gross Profit Margin was 53.6%, compared to 50.2% in Q2 2023 and 47.0% in Q3 2022.
- GAAP Net loss from continuing operations was $8.4 million, compared to $12.9 million in Q2 2023 and $300.6 million in Q3 2022.
- EBITDA from continuing operations1 was $20.7 million, compared to $6.5 million in Q2 2023 and ($317.9) million in Q3 2022.
- Adjusted EBITDA from continuing operations1 was $24.2 million, compared to $12.8 million in Q2 2023 and $12.8 million in Q3 2022.
- Adjusted EBITDA Margin from continuing operations was 27.1%, compared to 17.8% in Q2 2023 and 19.3% in Q3 2022.
- Net cash provided by operating activities – continuing operations was $9.4 million compared to $1.8 million in Q2 2023 and $2.3 million in Q3 2022.
- Free cash flow from continuing operations was $7.7 million compared to ($0.2) million in Q2 2023 and ($9.5) million in Q3 2022.
TSNDF Stock Performance
TSNDF stock closed at $1.60 on November 22nd, down 10.61% in the past month of trading. In this case, the stock has a 52-week price range of $1.00-$2.50 and is up 41.51% year to date.
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Acreage Holdings, Inc.
Acreage Holdings, Inc. is a cannabis grower and retailer with locations around the United States. If the US embargo is repealed, Acreage’s collaboration with Canopy Growth Corporation (NASDAQ: CGC) may result in a purchase. The economies of New York and New Jersey are expected to have significant growth in the next years as a result of their large geographic borders. Acreage intends to complete the construction of its development center in New Jersey, the state with the highest number of licensed retailers.
Third Quarter 2023 Financial Highlights
- Consolidated revenue of $56.5 million, a decrease of 2.8% compared to the quarter ended June 30, 2023 (“Q2 2023”).
- Gross margin was 38%. Excluding the impact of non-cash inventory adjustments, gross margin for Q3 2023 was 41%.
- Net Loss for Q3 2023 was $7.9 million.
- Adjusted EBITDA* was $6.6 million and Adjusted EBITDA* as a percentage of consolidated revenue was 12%.
ACRHF Stock Performance
ACRHF stock closed at $0.15 on November 22nd, down 13.89% in the last week of trading. The stock has a 52-week price range of $0.11-$1.25 and is down 69.61% year to date.
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MariMed Inc.,
MariMed Inc., a cannabis operator operating in multiple states, strives to improve people’s lives daily by providing high-quality products, services, and values. The Company cultivates, owns, and runs state-licensed cannabis facilities that are leaders in horticulture concepts, cannabis production, cannabis-infused products, and dispensary operations—from seed to sale. The success and ongoing growth of MariMed and its managed business divisions can be attributed to its skilled management team. A selection of the company’s best-selling and most prestigious brands and products include Vibrations: High + Energy, Betty’s Eddies, Nature’s Heritage, InHouse, Bubby’s Baked, K Fusion, and Kalm Fusion.
Q3 2023 Financial Highlights
For the three months ending September 30, 2023, the Company reported a revenue of $38.8 million. This is an increase from $33.9 million in the same period in 2022. However, the GAAP gross margin decreased to 43% in 2023 from 48% in 2022. The Non-GAAP gross margin also saw a decline, from 48% in 2022 to 45% in 2023.
The GAAP net income shows a loss of $4.3 million for the three months ending September 30, 2023. This contrasts with a net income of $2.7 million in the same period in 2022. The Non-GAAP net income also reflects a loss of $3.1 million in 2023, a significant drop from the $4.7 million net income in 2022. Despite these losses, the Non-GAAP Adjusted EBITDA was $6.1 million in 2023, down from $8.6 million in 2022. The Non-GAAP Adjusted EBITDA margin also decreased from 25% in 2022 to 16% in 2023.
Over the nine months ending September 30, 2023, the Company’s revenue was $109.7 million. This is an increase from $98.2 million over the same period in 2022. The GAAP gross margin for these nine months was 44% in 2023, down from 49% in 2022. Similarly, the Non-GAAP gross margin decreased to 45% in 2023 from 49% in 2022.
The GAAP net income over the nine months shows a loss of $5.9 million in 2023. This contrasts with a net income of $8.9 million in 2022. The Non-GAAP net income also reflects a loss of $2.2 million in 2023, compared to a net income of $17.0 million in 2022. However, the Non-GAAP Adjusted EBITDA was $19.4 million in 2023, down from $27.9 million in 2022. The Non-GAAP Adjusted EBITDA margin decreased from 28% in 2022 to 18% in 2023.
MRMD Stocks Performance
MRMD stock closed at $0.3090 on November 22nd, down 22.36% in the past month of trading. In this case, the stock has a 52-week price range of $0.2510-$0.58 and is down 13.25% year to date.
Marijuana Stocks with Sky-High Potential
In conclusion, the expanding U.S. cannabis industry offers intriguing opportunities for investors, especially in the realm of marijuana penny stocks. These stocks, representing emerging companies in the sector, present the potential for significant growth. However, they also carry inherent risks due to their volatile nature. Investors need to approach these opportunities with a blend of optimism and caution. The growth trajectory of the cannabis industry, driven by wider legalization and societal acceptance, creates a favorable environment for these stocks.
When dealing with marijuana penny stocks, a well-thought-out strategy is crucial. Traders must employ technical analysis to make informed decisions. This involves a deep dive into market trends and indicators for better timing of trades. Additionally, robust risk management is indispensable. Diversifying investments and setting stop-loss orders are practical measures to minimize potential losses. Investors must be prepared for sudden market shifts because these stocks can be highly unpredictable. Ultimately, success in this market hinges on being well-informed and maintaining a cautious investment stance.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
