Best Penny Stocks in the Cannabis Sector for Memorial Weekend
Many investors are looking for the best marijuana stocks to watch in the cannabis industry as Memorial Day weekend gets closer. This sector is buzzing with activity due to recent positive news about US cannabis legalization. The US cannabis industry is growing rapidly. In 2022, the market was valued at $13.2 billion. It is expected to reach $33 billion by 2025. With this growth, investors are increasingly interested in penny stocks that could offer significant returns. However, due to the volatile nature of penny stocks, technical analysis and proper risk management are essential. Using these tools, investors can make more informed decisions and protect their investments.
Additionally, recent headlines suggest that federal legalization in the US could be on the horizon. This potential change would dramatically boost the industry. Many states are already pushing forward with their legalization measures. For example, New York and New Jersey have recently legalized recreational marijuana. This has led to increased market activity in these states. With this momentum, savvy investors are looking for the next big opportunity. They can identify promising penny stocks by carefully analyzing stock charts and trends. Moreover, managing risks by setting stop-loss orders and diversifying portfolios can help safeguard against losses. Staying informed and cautious is key in the dynamic world of marijuana penny stocks.
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This Week’s Top Marijuana Penny Stocks for Your Watchlist
- Planet 13 Holdings Inc. (OTC: PLNH)
- Gold Flora Corporation (OTC: GRAM)
- TerrAscend Corp. (OTC: TSNDF)
Planet 13 Holdings Inc.
Planet 13 Holdings Inc. (PLNH) is a leading cannabis company known for its unique retail experiences. They operate the world’s largest cannabis dispensary in Las Vegas, Nevada. Additionally, they have expanded their presence with another store in Orange County, California. The company is dedicated to creating immersive experiences for customers, combining entertainment with cannabis retail.
Planet 13 continues to grow, focusing on states with significant cannabis markets. Their flagship store in Las Vegas draws tourists and locals alike. Meanwhile, the Orange County location is quickly gaining popularity. With plans for further expansion, they aim to increase their footprint in key markets. By offering a diverse range of products and a unique shopping experience, Planet 13 is positioned for continued success in the cannabis industry.
First Quarter 2024 Financial Highlights
Planet 13 Holdings Inc. reported Q1 2024 revenue of $22.9 million, a decrease from $24.9 million in Q1 2023. The company experienced a net loss of $5.9 million, an improvement from the $8.5 million loss in the previous year. Adjusted EBITDA loss was zero, compared to a $1.3 million loss in Q1 2023. The gross profit margin improved to 45.8% from 43.7%, due to reduced retail discounting. Total expenses decreased to $14.1 million from $15.3 million. Cash on hand increased to $20.8 million from $11.8 million at the end of 2023.
Co-CEO Larry Scheffler highlighted the impact of potential cannabis rescheduling from Schedule I to Schedule III. This change could significantly enhance cash flow and net income. Planet 13 is preparing for this shift by expanding its Neighborhood store network. Additionally, the company is focused on growth strategies to counteract pricing pressures in Nevada. The recent acquisition of VidaCann aims to bolster the company’s revenue and operational leverage. This acquisition is expected to drive more cash flow, especially in a post-280E tax landscape.
Co-CEO Bob Groesbeck emphasized the company’s progress in achieving its growth objectives. The opening of the DAZED! Cannabis lounge in April and the imminent closure of the VidaCann acquisition are notable milestones. These moves position Planet 13 as a top player in the Florida market. The team at VidaCann has shown impressive growth, and Planet 13 is excited to maintain this momentum. As Florida moves towards potential adult-use legalization, the company anticipates significant opportunities. This period marks the beginning of an extensive growth plan to transform Planet 13 from a local brand with a global following to a national presence.
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Gold Flora Corporation
Gold Flora Corporation (GRAM) is a prominent player in the cannabis industry, focusing on cultivation, manufacturing, and retail. It is known for its high-quality cannabis products and comprehensive vertical integration. The company operates several stores, primarily in California, where it has established a strong presence. Gold Flora’s dedication to quality and customer satisfaction sets it apart in the competitive cannabis market.
Gold Flora continues to expand its footprint with plans for further growth. The company leverages its extensive experience in cannabis cultivation and manufacturing to deliver premium products. Its California operations serve as a hub for innovation and excellence. Gold Flora focuses on sustainability and quality control, ensuring its products meet high standards. Maintaining a strong retail presence, it caters to a growing customer base seeking reliable and top-tier cannabis products. This strategic approach positions Gold Flora for continued success in the evolving cannabis industry.
First Quarter 2024 Financial Highlights
Gold Flora Corporation announced its Q1 2024 financial results, showing a 13% sequential revenue growth to $32.2 million. The company achieved an adjusted gross profit of $17.4 million, representing a 54% adjusted gross margin. The net quarterly loss was $13.7 million, and adjusted EBITDA was a loss of $1.8 million. Despite these losses, cash in operating activities improved to $4.4 million, down from $6.4 million in Q4 2023. Cash and cash equivalents totaled $14.2 million as of March 31, 2024. The company has completed its prior cultivation expansion projects and is scaling post-harvest production activities.
Gold Flora has successfully launched its new brand, Gramlin, aimed at high-volume consumers. This brand features premium flower products, with vape and pre-rolls to follow. The introduction of Gramlin has been well received, driving increased sales through the company’s retail chain and third-party retailers in California. Additionally, Gold Flora expanded its cultivation canopy to 107,000 square feet, with further growth expected in the second half of 2024. The company has also leased additional cultivation space, increasing its footprint to 160,000 square feet. This expansion is set to boost annual flower production by approximately 25,000 pounds. The company remains focused on enhancing profitability and productivity through refined cultivation methods and increased production capabilities.
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TerrAscend Corp.
TerrAscend Corp. (TSNDF) is a leading North American cannabis operator. The company is involved in cultivation, manufacturing, and retail. Overall, they are significant in states like New Jersey, Pennsylvania, and California. With multiple stores and production facilities, TerrAscend aims to provide high-quality cannabis products to a broad customer base.
TerrAscend continues to expand its footprint, focusing on key markets with strong growth potential. In New Jersey, they operate some of the largest dispensaries, catering to both medical and recreational users. In Pennsylvania, they have established a robust medical cannabis network. Meanwhile, TerrAscend leverages its expertise in California to offer premium products in a competitive market. The company’s vertically integrated approach ensures control over quality and supply chain, positioning them for continued success in the rapidly evolving cannabis industry. With a commitment to innovation and customer satisfaction, TerrAscend is ready to grow with the market.
First Quarter 2024 Financial Highlights
TerrAscend Corp. reported Q1 2024 net revenue of $80.6 million, a 16.1% increase year-over-year. The company achieved a gross profit margin of 48.0%, slightly down from 48.8% in Q1 2023. Net loss from continuing operations was $14.9 million, improving from a $19.2 million loss the previous year. In addition, EBITDA from continuing operations was $8.7 million, up from $6.1 million in Q1 2023. Adjusted EBITDA from continuing operations reached $16.2 million, a 33% increase from $12.2 million in Q1 2023. Cash flow from operations improved to $13.3 million, while free cash flow was $10.5 million.
During Q1 2024, TerrAscend expanded its footprint and product offerings. The company saw an 80% increase in Pennsylvania wholesale sales, driven by its Legend flower and Valhalla edibles brands. They also launched new products, including 100mg edibles in Pennsylvania. TerrAscend acquired additional equity in State Flower and three Apothecarium dispensaries in California. This expansion aims to leverage the company’s vertically integrated model for greater profitability. Overall, the company remains optimistic about future growth, citing regulatory changes and market opportunities.
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Marijuana Penny Stocks to Add to Your Watchlist Now
This week, marijuana penny stocks are attracting significant attention from investors. The US cannabis industry continues to grow rapidly, valued at $13.2 billion in 2022. Experts predict it will reach $33 billion by 2025. Recent news about possible federal legalization has further fueled interest. For instance, the DEA’s potential rescheduling of cannabis from Schedule I to Schedule III could dramatically impact the market. Investors are eager to identify promising marijuana penny stocks that could yield high returns.
When considering marijuana penny stocks, technical analysis, and proper risk management are crucial. Technical analysis helps investors understand stock trends and make informed decisions. Risk management strategies, such as setting stop-loss orders and diversifying portfolios, are essential to protect investments. With the cannabis industry evolving, staying informed about regulatory changes and market conditions is vital. As more states move towards legalization, the opportunities for growth in this sector are immense. This week offers an opportunity to explore and invest in top marijuana penny stocks.
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