Market Sentiment Continues To Affect Marijuana Stocks
As the cannabis sector continues to feel the effects of current market sentiment most marijuana stocks are seeing a red day in trading. In today’s trading investors seem to be sitting on the sideline waiting for the announcement from the Federal Reserve. Because of a renewed increase in treasury yields investors have grown nervous of a change in monetary policy from the Fed.
But with the cannabis sector currently down in the market, it could be an opportunity to pick up marijuana stocks at a lower price point. One area that has seen substantial gains in 2021 is the best marijuana penny stocks to watch. Currently, the one with the most notoriety is Sundial Growers Inc. (NASDAQ: SNDL). Because of the media frenzy due to Reddit investors that mention the pot stock, it climbed substantially in the market. Currently SNDL stock is trading around $1.50 a share with a high in February of $3.96.
But this stock is not the only marijuana stock trading under $5 that’s shot up to start 2021. In many instances, top penny cannabis stocks have managed to see triple-digit percentages to start the year. And as things continue to progress in the U.S. with more states legalizing the recreational market growth seems to be happening rather quickly.
Preparing For Cannabis Investments
For investors new to the cannabis sector first thing to be ready for is market volatility. Hands down the cannabis sector are one of the more volatile areas of the market. Doing your own due diligence and watching how pot stocks perform in the market is key to making a good investment.
In reality, the cannabis sector is a high-risk high-reward place to invest. Since November 2020 cannabis stocks have seen upward momentum in the market. Many investors have been able to invest early on and have seen gains in market value. Finding marijuana stocks to buy at lower market values could be difficult with so many options in the market. One thing to watch stocks for is market fluctuations watching a stock’s daily performance can give you a better chance of making a good investment.
Before investing you should always do your own research into these companies before starting a position. For the purpose of researching some potential investments under $5 per share let’s take a look at 2 marijuana penny stocks to add to your March watchlist.
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Marijuana Stocks To Watch:
Harborside Inc. is one of the original California cannabis retailers that started in 2006. Initially, the company was awarded one of the first six licenses granted in the United States. At the present time, Harborside has six dispensaries in California and Oregon. In the companies, last financials Harborside saw record revenue growth in Q3 of 2020. Specifically, Harborside reported $19.6 million in revenue with a positive adjusted EBITDA of $4.5 million. The Company’s strong combined gross margin of 54.7% is attributed to improved harvest yields and higher wholesale volumes.
Currently, Harborside has started expanding and could continue to grow its presence in California. In January the company released its preliminary full-year 2020 results in which the company expects gross revenue between $61-$63 million. In addition, the company expects a 2021 gross revenue of $68-$72 million. The company is expecting growth derived from improved pricing in retail and its efficiency in the wholesale cannabis operations.
HBORF stock is up 25.48% year to date with a high of $2.54 in February. Currently trading at $2.10 going into the close on March 17th the stock is up about 2% in the market. According to analysts at Stock Invest HBORF stock is expected to rise 21.47% during the next 3 months. Because of recent leadership changes the company could begin to expand at a faster rate. With This in mind, HBORF could be a marijuana stock to watch for March.
4Front Ventures Corp
4Front Ventures Corp is a multi-state cannabis company that distributes over 25 cannabis brand products. At the present time, 4Front has operations in Illinois, Massachusetts, California, Michigan, and Washington state. In 4Fronts Q3 2020 financials the company saw pro forma revenue of $22.3 million up 170% year over year. Also, the company has also given initial 2021 pro forma revenue of $170-$180 million. At the present time, the company’s existing projects represent a long-term revenue opportunity upwards of $650 million. In general, 4 Front could experience growth in Arizona due to the introduction of the adult-use cannabis market.
On March 15th 4Front announced it entered into a definitive agreement to secure land and funding for a massive cultivation and production facility in Illinois. In detail Innovative Industrial Properties, Inc., (NYSE: IIPR) to build a 558,000 square foot facility in Illinois. In fact, this would be the largest facility of this type in the state.
FFNTF stock is up 56.04% year to date with a high of $1.98 in February. Currently closing trading on March 17th at $1.40 the stock could have some future potential. According to analysts at Stock Invest FFNTF stock could rise 73.26% during the next 3 months. For this reason, FFNTF stock is a top marijuana penny stock to watch for the rest of March.
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