Key Marijuana Penny Stocks to Keep an Eye On
The US marijuana sector and top marijuana stocks are buzzing with activity, offering an array of penny stocks to watch this week. These stocks belong to companies operating in cultivation, distribution, and technology related to cannabis. They are poised for volatility, attracting investors seeking high-risk, high-reward opportunities. The industry’s growth is fueled by increasing legalization across states, despite federal restrictions. This scenario creates a unique market dynamic. Investors are keenly watching legislative developments. They impact stock valuations significantly.
Understanding the US cannabis industry’s trajectory involves looking at its growth potential. Analysts predict significant expansion in the coming years. This is due to more states legalizing cannabis for medical and recreational use. With growth, comes the need for technical analysis and proper risk management. These tools are crucial for navigating the volatile marijuana penny stock market. Technical analysis helps in identifying trends and patterns. Proper risk management minimizes potential losses. Both are essential for investors in this high-stakes sector.
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Top US Marijuana Penny Stocks to Watch
- Planet 13 Holdings Inc. (OTC: PLNH)
- Glass House Brands Inc. (OTC: GLASF)
- Gold Flora Corporation (OTC: GRAM)
Planet 13 Holdings Inc.
Headquartered in Las Vegas, Nevada, Planet 13 Holdings Inc. is a well-known cannabis company. “Planet 13 Superstore,” one of the largest cannabis stores in the world, is operated by Planet 13, a company known for its innovative and immersive approach to cannabis shopping. The company’s main goal is to supply a broad variety of cannabis products, such as edibles, extracts, flower, and more. It caters to both recreational and medical clients.
As of right now, Planet 13’s main clientele is in Nevada, where company headquarters are located in Las Vegas. Our flagship location’s unique and immersive shopping idea has made it a well-known cannabis destination that draws visitors from all over the world. With a focus on providing a sophisticated and enjoyable purchasing experience, Planet 13 is a leading player in the cannabis retail sector.
The organization’s reputation as a trailblazer in the cannabis retail sector can be primarily ascribed to its commitment to providing an extensive assortment of high-quality items and an exceptional client experience. Planet 13 has solidified its position as a pioneer in the cannabis sector and set itself up as an example for other dispensaries looking to enhance the customer experience with its innovative retail approach.
Financial Highlights – Q3 – 2023
In its Q3 2023 financial report, Planet 13 Holdings Inc. revealed mixed results in several important areas. With $24.8 million in revenue for the quarter, less than 3.3% of last year’s comparable period’s total was made. The reduction was ascribed to a little drop in Nevada’s wholesale revenue in addition to fewer SuperStore sales. Despite this, gross profit rose to $11.1 million, mostly as a result of a drop in retail product discounts, which raised the gross margin to 44.7% from 41.2%.
Nonetheless, a one-time non-cash impairment charge of $39.6 million was the primary cause of the company’s overall spending increase to $55.1 million. The entire expense, without the impairment, came to $15.4 million. As a result, Planet 13 saw a net loss of $46.0 million for the quarter as opposed to a $6.3 million loss in the same period of the previous year. This rise in net loss was mostly caused by the impairment charge. Additionally, operating leverage caused the adjusted EBITDA margin to decrease, from $0.5 million to $0.2 million, after a better gross margin partially offset the reduction.
After examining the balance sheet, Planet 13 revealed that its cash reserves had decreased to $36.8 million from $52.4 million at the close of 2022. While total liabilities stayed mostly steady at $41.5 million, total assets dropped from $233.6 million to $178.4 million.
A major step toward expanding its footprint, Planet 13 recently announced its desire to acquire VidaCann. September 2023 saw the completion of both the Nevada domicile move and the OTC trading symbol change. In addition, the business demonstrated its dedication to improving client experiences on November 1, 2023, when it revealed plans for the Dazed! Consumption Lounge.
PLNH Stock Performance
PLNH stock closed on February 14th at $0.7109, down 18.29% in the last month of trading. Currently, the stock has a 52-week price range of $0.451-$1.20 and is up 11.06% year to date.
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Glass House Brands Inc.
Specializing in the manufacturing, marketing, and cultivation of high-quality cannabis, Glass House Brands is a major player in the US cannabis market. With its headquarters located in California, Glass House Brands is a well-known vertically integrated company that prioritizes environmentally friendly products. In California, they have a solid reputation in the cannabis business, which is well known for its size and rising potential. Retail brand Glass House Brands has established multiple sites to further solidify its presence in the state as a result of its strategic growth.
In response to California’s increasing demand for cannabis for both recreational and therapeutic purposes, a company by the name of Glass House Brands offers premium cannabis products. They are unique in the business due to their dedication to sustainable and ecologically friendly farming practices. Both consumers and investors are lured to the emerging cannabis industry, in which Glass House Brands is widely acknowledged as a major player. California continues to be a leader in the use of and legalization of cannabis.
Third Quarter 2023 Highlights
Glass House Brands announced exceptional financial results and noteworthy accomplishments for the third quarter of 2023. Notably, their cash buffers increased to $37.9 million from $22.7 million in the previous quarter thanks to an inflow of $12.8 million from a Series D Preferred Equity Fund Raise. The company’s operating cash flow rose sharply, from $8.3 million to a record $9.1 million in the second quarter of 2023. Adjusted EBITDA improved significantly as well, rising from $9.5 million to $10.7 million in the previous quarter.
The most significant metric in their Q3 results was their revenue, which hit a record $48.2 million and climbed by an incredible 71% year over year and 8% sequentially. Although the gross margin dropped from 55% in the second quarter of 2023 to 54% in the same quarter of the previous year, it was still far higher than 31%. The company reported a spectacular 142% spike in Q3 Biomass sales over the previous year, in addition to a 36% increase in output.
Looking ahead, Glass House Brands released its Q4 2023 forecasts. Revenues of $38 million to $40 million, a 21% increase over Q3 2022, were forecast. However, the guideline expects a 19% straight fall from the mid-point due to adverse weather that lowers flower output.
GLASF Stock Performance
GLASF stock ended at $6.63 on February 14th, up 13.72% in the last month of trading. In this case, the stock has been trading in a 52-week range of $2.12-$7.20. GLASF stock is up 40.17% year to date.
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Gold Flora Corporation
Gold Flora Corporation is a cannabis industry pioneer, driven by a female management team. This innovative business oversees a diverse range of activities, such as fifteen retail locations around California and eight unique cannabis brands. It also manages a number of other business ventures. Stately Distribution, a major component of its portfolio, is in charge of a number of prestigious retail brands. These are Varda, Caliva, Coastal, Calma, King’s Crew, Airfield Supply Company, and Higher Level. This wide variety of products highlights Gold Flora’s noteworthy market share in the cannabis industry.
Gold Flora is based in Desert Hot Springs and has a huge operational footprint. Three buildings totaling 72,000 square feet are part of its facilities, which are devoted to indoor growing. The business is preparing to add some 240,000 square feet to its current site as part of a significant expansion. The purpose of this action is to adapt to the shifting market demands. Moreover, the modern 200,000-square-foot campus functions as the hub for extraction, manufacture, and activities related to Stately Distribution. These facilities’ advantageous position guarantees effective logistics and top-notch security, both of which are essential for protecting their goods.
Additionally, Gold Flora Corporation is a major force in the Californian cannabis industry’s distribution of well-known brands. Its distribution network consists of partnerships with Roll Bleezy, Cruisers, Mirayo by Santana, and its line of luxury brands, Gold Flora, Monogram, and Caliva. Jetfuel Cannabis, Aviation Cannabis, and Sword & Stoned are some of its other well-known brands. Gold Flora’s dependable supply chain and well-established distribution channels have made it the preferred choice for numerous external organizations looking to purchase high-quality cannabis goods.
Third Quarter 2023 Highlights
In the third quarter of 2023, Gold Flora Corporation achieved notable financial success. The company reported a total revenue of $32 million, with a gross profit of $11.3 million. This reflects a substantial 35% gross margin. Adjusted figures were even more impressive, with an adjusted gross profit of $18.1 million, equating to a 57% margin. A significant factor in these results was a net income of $23 million, bolstered by a $49 million non-cash gain from a merger with TPCO Holding Corp. Operational highlights include successful strategic initiatives like cost-saving measures, organizational restructuring, and an expansion in cultivation capacity, which have positioned Gold Flora for continued growth and market dominance.
GRAM Stock Performance
GRAM stock ended at $0.3618 on February 14th, down 3.52% in the last month of trading. In this case, the stock has been trading in a 52-week range of $0.005-$0.426. GRAM stock is up 126.13% year to date.
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Prime US Cannabis Penny Stocks for Investors
In conclusion, the top marijuana penny stocks this week present a fascinating mix of risk and opportunity. Investors eyeing these stocks should leverage technical analysis. It’s a powerful tool. It helps predict future price movements based on historical data. Understanding chart patterns and indicators can guide entry and exit points. This is crucial in a market known for its swift price changes. Additionally, staying updated on industry news and legislative changes is key. These factors can dramatically impact stock prices overnight.
Proper risk management cannot be overstressed when investing in marijuana penny stocks. Diversifying your portfolio is one strategy. It helps mitigate risks associated with any single investment. Setting stop-loss orders can also protect against significant losses. Remember, while the potential for high returns is tempting, the volatility of these stocks requires a cautious approach. Overall, by combining technical analysis with sound risk management practices, investors can navigate this challenging yet potentially rewarding market more effectively.
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