Top Cannabis Stocks And The Negative Impact Of Delays In Congress
As the best marijuana stocks to buy continue to decline in October are you looking for ways to make gains in the cannabis market? For almost a year now cannabis investors have been expecting the US Congress to pass marijuana legalization and banking reform in 2021. Although we have seen the House pass the MORE Act and the SAFE Banking Act the delays in the Senate continue to persist. This has caused the cannabis sector to continue a downward trajectory that it’s been on since it reached new highs in February. This year the Senate has dealt a major blow to top marijuana stocks in the market.
Without some form of federal cannabis reform, this year investors are looking in other areas of the market to find value in October. Although cannabis companies are performing well and delivering strong financials this has not translated into gains in the market. Now with another round of earnings scheduled in November pot stocks could be primed for a reversal. Currently, many investors are taking advantage of the volatility in the cannabis sector by trading marijuana penny stocks. In general penny stocks are those equities that trade under the $5 stock price.
Canadian LPs In 2021 And The Stock Market
Canadian cannabis penny stocks have seen the most volatility in 2021. This is because Canadian pot stocks trade on major US exchanges like the Nasdaq and NYSE. This has given them much more exposure to a new pool of retail investors from Robinhood and WeBull. Unfortunately for US cannabis companies, they are only allowed to trade on the OTC Markets. Recently these Canadian cannabis stocks have begun to see significant price swings in October. With the possibility of a federal catalyst for the US cannabis industry increasing with each passing day, it could be time to start a watchlist of the top cannabis stocks for November.
In Canada, the cannabis market has also shown substantial growth in 2021. In August Canadian cannabis retail sales reached a record-high $288.80 million up 43.8% from a year ago. Some of these penny pot stocks have also gained previous notoriety as one of Reddit Investors picks and delivered significant gains in the first quarter. Before investing in marijuana penny stocks, it’s important to know this is a higher risk area of the market. Many investors prefer trading penny stocks using short-term trading methods like day trading and swing trading. Let’s look at 2 top marijuana penny stocks for your list in November.
Best Cannabis Penny Stocks To Watch Trading Under $2
HEXO Corp. is a Canadian company with award-winning cannabis products in the market. In general, the company has a presence throughout a global industry, serving the Canadian recreational market with an extensive brand portfolio. As it stands, HEXO is producing medical sales in Canada, Israel, and Malta. In addition, the company has been expanding into is the US cannabis market as well. Right now, HEXO serves the Colorado market with Truss CBD USA a joint venture with Molson Coors. Recently, the company acquired Zenabis Global Inc. a Canadian licensed cultivator of recreational and medical-grade cannabis. Both acquisitions will help solidify the future expansion for HEXO in Canada, Europe, and the US market.
In its third-quarter fiscal 2021 results, the company reported that total net sales increased 2% year over year. Total net sales declined by $10.2 million from Q2 FY21. This was partly due to the company’s production issues relating to certain cannabis products. Additionally, the company did not produce any international medical sales in that quarter due to revised testing and additional certifications by the Israeli government. HEXO also purchased its first US production facility through a wholly-owned US subsidiary. The 50,000 square foot facility is in Fort Collins, Colorado, and will provide high-quality Powered by HEXO products across the US. The company will deliver its fourth quarter and fiscal year 2021 financial results on October 29th before the market opens.
HEXO closed on October 27th at $1.62 down 14.43% in the past five trading days. Currently, the stock hit a new 52-week low today of $1.61. According to analysts at CNN Business HEXO stock has a 12-month median price target of $4.05 per share. In this case, this would be an upside of 150.55% from its last trading price of $1.62.
Sundial Growers Inc.
On Reddit, Sundial Growers Inc. gained popularity as a meme stock in 2021. The company engages in the production and marketing of cannabis products for the adult-use market in Canada. Primarily, the company manufactures and distributes inhalable products, such as flower, pre-rolls, and vapes. Recently Sundial announced it launched the first Canadian Caviar cone under the Top Leaf brand. In detail, the Forbidden Lemon Caviar Cones will be the first caviar cone product to hit the Canadian market. To highlight, this launch reinforces Sundial’s focused innovation pipeline around premium inhalable in the Canadian cannabis market. In October Sundial announced it would acquire Alcanna Canada’s largest private liquor retailer.
Sundial has become a cannabis company and is focused on investment operations. The company reported its Q2 2021 financials with net revenue for the cannabis segment of $9.2 million. Additionally, with the company’s investment fee revenue Sundial made $5.7 million and $3.7 million in profit from equity investments. As a result, the company saw net revenue of $18.6 million in Q2 2021. Specifically, the company produced gross cannabis revenue of $12.7 million an increase of 8% sequentially. Also, in Q2 2021 Sundial sustained a net loss of $52.3 million and an adjusted EBITDA loss of $0.2 million.
SNDL stock closed at $0.6525 down 3.57% in the past five trading days. The stock has a 52-week price range of $0.138-$3.96 and is up 40.40% year to date. According to analysts at Tip Ranks SNDL stock has a 12-month average price target of $0.80 per share. In essence, this would be a 22.61% upside from current trading levels.
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