The Canadian Cannabis Industry In 2021
For investors looking for the best marijuana stocks in October, there are many different pot stocks trading at lower price points right now. One area that has been hit particularly hard in 2021 is Canadian cannabis stocks. In 2020 the Canadian cannabis sector rallied around the notion the US would legalize cannabis use federally in 2021 allowing them to fully enter the American marijuana market.
With the Senate delaying the process of that happening so far this year the best Canadian pot stocks to invest in have lost substantial market value. Now in the fourth quarter lawmakers have passed the SAFE Banking Act and the MORE Act once again in the House. But in the Senate, Chuck Schumer continues delaying legalization until there is enough bipartisan support to push it through. In Canada, leading cannabis companies have been delivering improved financials but are now trailing behind the top US MSOs in revenue growth.
Canadian cannabis companies have continued to maximize their growth potential internationally and in Canada. Additionally, they have also planned their entry into the US cannabis market and currently are doing business in America in ways they are legally able to. In June 2021 Canada retail cannabis sales grew to $246.9 million. In July Canadian cannabis sales increased 45.6% year over year to $274.09 million. The market is growing and is in many ways similar in size to the California market.
Investing In Canadian Pot Stocks Right Now
For investors researching the best cannabis companies and following how a stock performs in the market can help you make the largest returns. One way investors get familiar with a company is by following its earnings results and press releases before starting a position. Additionally getting familiar with how a stock performs in the market can help you make the best entry into a trade. Especially in a volatile market like the cannabis sector, this could make a significant impact on the upside you see from a position.
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In today’s trading, top Canadian cannabis stocks have seen some upward momentum throughout the day. As more investors begin to see the potential top pot stocks may have from current levels, we could see more upside. With the possibility of the US passing federal marijuana legalization in the next six months Canadian marijuana stocks could have a potential rebound. Let’s look at 2 top Canadian marijuana stocks for your list this week.
Best Canadian Marijuana Stocks For Your Watchlist In Q4 2021
- Village Farms International, Inc. (NASDAQ: VFF)
- High Tide Inc. (NASDAQ: HITI)
Village Farms International, Inc.
Village Farms International, Inc. the company and its subsidiaries, produces, markets, and distributes greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. Additionally, the company began focusing on opportunities in the cannabis and CBD segments in Canada and the US. In detail, Village Farms wholly-owned subsidiary Pure Sunfarms is one of the largest cannabis operations in North America. Notably, this summer Pure Sunfarms received a cannabis cultivation license for a delta 2 greenhouse increasing production capacity by 50%.In September Village Farms unveiled new corporate branding and launches a new website www.villagefarms.com., embodying evolution to an international, plant-based, consumer products company.
Pure Sunfarms reported second-quarter 2021 results achieving 135% year over year growth in retail branded sales. The company has total net sales for the first six months of $42.2 million an increase of 70% from the same period in 2020. Pure Sunfarms achieved 38% sequential net sales growth and 192% sequential adjusted EBITDA growth. Currently, the company has become the top-selling licensed producer of dried flower in Ontario, Alberta, and British Columbia. In August Village farms acquired 100% of Balanced Health Botanicals a profit leader in the US CBD market.
VFF Stock Performance
VFF stock is trading at $7.84 on October 19, 2021, heading into the close. Currently, the stock has a 52-week price range of $4.55-$20.32 and is down 32.33% in the past six months. According to analysts at CNN Business VFF stock has a 12-month median price target of $18.07 per share. In this case, this would represent an upside of 130.52% from its current trading price.
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High Tide Inc.
High Tide Inc is a retail-focused cannabis corporation that also manufactures and distributes consumption accessories. At the present time, High Tide has a portfolio of companies that include a dominant Canadian cannabis retail chain. Also, the company has a global manufacturer and distributor of cutting-edge smoking accessories. Primarily, the company has established the largest accessories eCommerce platform in the world. High Tide opened its 30th retail location in Ontario which is the companies 101st branded retail location across Canada. The company announced that its company shares have now been included in the ETFMG Alternative Harvest ETF (NYSE: MJ). In addition, High Tide was also included in Investment Managers Series Trust II – Cannabis Growth ETF (BUDX). On October 19th High Tide closed on the acquisition of Blessed CBD and is entering the UK Market.
In Q2 of 2021, the company completed the acquisition of Smoke Cartel Inc. And also launched the sale of hemp-derived CBD products under its Grasscity brand. Overall, High Tide continues to see expansion into the US market through the acquisition of a leading online retailer Dankstop. In September the company reported its third-quarter 2021 results with revenue increasing by 99% to $48.1 million. As a result, gross profits increased by 75% to $16.7 million year over year. In detail, the company has an Adjusted EBITDA of $1.5 million compared to $3.4 million the prior year. The difference in the adjusted EBITDA is primarily related to High Tide’s uplifting to the NASDAQ.
HITI Stock Performance
HITI stock is trading at $6.02 on October 19, 2021, down 13.69% in the past month of trading. The stock has a 52-week price range of $3.00-$13.29 and is up 93.04% year to date. According to analysts at Tip Ranks HITI stock has a 12-month average price target of $13.85 per share. In essence, this would represent an increase of 129.89% from its current trading price. As things progress for the cannabis sector these could be the top Canadian cannabis stocks for your list this week.
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