Are Canadian Marijuana Stocks Ready To Rebound In The Market?
Are you looking for the best marijuana stocks to invest in right now? With a bipartisan push for federal marijuana legalization underway on Capitol Hill many now have their eye on the top cannabis stocks to buy in 2021. One sector that could see substantial upside with the end of US cannabis prohibition is Canadian cannabis stocks. The Canadian cannabis companies have been planning for entry into the American cannabis market for many years.
Some have established entry through the CBD market while others have made acquisitions that would position them in the US market once it’s federally legal. But due to delays with federal cannabis reform, Canadian marijuana stocks have suffered significant losses dairy 2021. After reaching new highs before mid-February most Canadian pot stocks declined to some of the lowest price points, they have seen this year in October and November.
Now with a possible catalyst in the US Congress, Canadian marijuana stocks are beginning to see some upside in trading this week. This could be an opportunity to make a list of the best Canadian marijuana stocks to invest in for 2021. In general, leading Canadian cannabis companies have experienced some revenue growth this year. Although they have not performed as well as US cannabis companies, they have in some cases improved their balance sheets.
Finding The Best Investments And Establishing The Largest Returns
Before investing in Canadian cannabis stocks, it’s always important to do your own due diligence before starting a position. In general, studying how a stock performs in the market and researching a company’s financial results and press releases can help you find the best companies to invest in. In specific, studying how a stock behaves in the market can help you find the best entry point and largest returns in a trade.
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Making a list of the best pot stocks can help you keep an eye on potential trades. Because the cannabis sector is known for volatility establishing a good entry point can be the difference between seeing gains or losses. Let’s look at 2 top Canadian marijuana stocks to add to your list in November.
Top Canadian Cannabis Stocks To Watch This Week
- OrganiGram Holdings Inc. (NASDAQ: OGI)
- Sundial Growers Inc. (NASDAQ: SNDL)
OrganiGram Holdings Inc.
OrganiGram Holdings Inc. is one of the leading licensed producers of cannabis and cannabis-derived products in the Canadian market. Primarily, the company is known for producing high-quality, indoor-grown cannabis products to both the medicinal and recreational markets. In general, Organigram is developing its international business partnerships increasing the company’s presence in the global cannabis industry. In addition, the company is also growing its wholesale shipping of cannabis and sells products online. Recently, Organigram extended its SHRED product portfolio with high quality, SHRED’ems Gummies. Also, the company launched Edison JOLTS Canada’s first flavored high potency THC ingestible extracts.
OrganiGram produced 84 new SKUs since July 2020 as a part of revitalizing its products portfolio. To highlight, this includes two new high potency strains under the higher-margin Edison brand in Q3. In its latest report, Organigram saw third-quarter fiscal 2021 results with gross revenue up 51% sequentially to $29.1 million. Specifically, the company grew its adult-use recreational net revenue by 40% sequentially to $16.8 million in Q3 2021. Now, the company expects sequentially higher revenue and improved adjusted gross margins in Q4 2021. On November 1st the company provided a corporate update that’s show its Canadian market share growing from 3.9% in January 2021 to 7.7% in September 2021. Giving Organigram the fourth largest position among Canadian LPs.
OGI stock closed at $2.21 on November 10th down 1.75% in the past five trading days. The stock has a 52-week price range of $1.07-$6.45 and is up 68.42% year to date. According to analysts at CNN Business OGI stock has a 12-month median price target of $3.00 per share. In this case, this would represent an upside of 35.93% from its last trading price.
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Sundial Growers Inc.
Sundial Growers Inc. 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. To highlight, the Forbidden Lemon Caviar Cones will be the first caviar cone product to hit the Canadian market. Overall, 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 that is also focusing 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 $0.7246 on November 10th up 6.952% for the trading day. The stock has a 52-week price range of $0.236-$3.96 and is up 43.08% year to date. According to analysts at Tip Ranks SNDL stock has a 12-month average price target of $0.80 per share. This forecast represents an upside of 11.62% from its last trading price.
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