Canadian Cannabis Stocks In 2021
As top marijuana stocks continue trading near some of the lowest levels in 2021 are you looking to invest? Initially, in 2021 the best cannabis stocks to buy started the year rallying in the market until almost mid-February. Since then, the cannabis sector has experienced a downtrend that has left top pot stocks trading at their lowest stocks prices in October. Additionally, marijuana stocks have also experienced enhanced market volatility as well. One way many more investors are taking advantage of the increased volatility is by trading marijuana penny stocks.
Penny stocks are known as any equities trading under the $5 mark. In the first quarter, these cannabis stocks rallied significantly delivering triple-digit percentage gains for traders. One reason for this uptrend earlier in the year was federal marijuana legalization. Many new retail investors poured into the cannabis sector believing Congress would pass marijuana legalization earlier in the year. Some of these cannabis penny stocks also became favorites on the Reddit platform and are known as meme stocks.
This also has helped them gain notoriety with new retail investors. When trading penny pot stocks many investors prefer using short-term trading methods like day trading and swing trading. Using these methods traders can lock in short-term gains as prices fluctuate. Because penny stocks trade at much lower level’s investors can establish larger positions with less capital.
Investing In Penny Stocks And The Cannabis Industry
For investors, it’s important to do your own due diligence on a company before investing. Researching a company’s financial results and studying how the stock moves in the market can help you achieve the most gains on your investments. Because top marijuana penny stocks are extremely volatile this can make the difference between seeing gains or taking losses. In Canada, cannabis companies are patiently waiting for the US government to end cannabis prohibition.
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These companies have established an entrance into the US market and continue growing across Canadian provinces. As October continues to drive cannabis penny stocks to lower levels, it could be time to make a watchlist of top marijuana stocks to invest in. In 2021 the possibility of the US legalizing marijuana has increased in the fourth quarter. This could boost top Canadian cannabis stocks in 2021. Let’s look at 2 top marijuana penny stocks for your list in October.
Best Canadian Marijuana Penny Stocks In 2021
- Sundial Growers Inc.(NASDAQ: SNDL)
- Neptune Wellness Solutions Inc. (NASDAQ: NEPT)
Sundial Growers Inc.
On Reddit, Sundial Growers Inc. gained popularity as a mem stock in 2021. The company engages in the production and marketing of cannabis products for the adult-use market in Canada. In general, 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. Specifically, 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. On October 7th Sundial announced it would acquire Alcanna Canada’s largest private liquor retailer.
Sundial 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. As a result, 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 is trading at $0.6621 on October 15th down 6.48% in the last month. Currently, the stock has a 52-week price range of $0.138-$3.96 and is up 40.27% year to date. According to analysts at CNN Business SNDL stock has a 12-month median price target of $0.78 per share. In this case, this would represent an upside of 18.51% from its current trading price.
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Neptune Wellness Solutions Inc.
Recently, Neptune Wellness Solutions Inc. completed a transition to a fully integrated consumer packaged goods company. In general, the company is launching a lineup of CBD beverages in the US including CBD-infused flavored teas and lemonades. Specifically, Neptune is transitioning from a B2B cannabis and hemp extraction company to a consumer products company. Now, with a new focus on consumer products the company is providing cannabis, nutraceuticals, beauty, and personal care, and organic food & beverage products. On October 6th the company appointed Jessica Adkins as Senior Vice President and Corporate Communications.
In 2021 Neptune secured a supply agreement with Alberta Gaming, Liquor, and Cannabis expanding the company’s presence into over 1600 retailers in Canada. As a result, the company can now sell recreational cannabis products through its Mood Ring and PanHash brands across British Columbia, Alberta, Ontario, and Quebec. In August Neptune’s delivered its first-quarter fiscal 2022 results with revenue of $12.4 million compared to $11.2 million year over year. Although still reporting a gross profit loss of $2.9 million this is an improvement from the $3.3 million In Q1 of fiscal 2021.
NEPT stock is trading at $0.554 on October 15th down 6.56% in the last month. The stock has a 52-week price range of $0.54-$3.60 and is down 64.85% year to date. According to analysts at Tip Ranks NEPT stock has a 12-month average price target of $1.01 per share. In essence, this would be a gain of 83.64% from its current trading price of $0.55. In 2021 top marijuana penny stocks could be a way to achieve short-term gains in a volatile market.
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