Marijuana Stocks See Volatility In February 2021
In February marijuana stocks have taken investors on a rollercoaster ride of market volatility. Although many seasoned investors are used to this type of trading activity in the cannabis sector, new investors could be shaken out of positions with substantial losses. As markets close the month of February relatively flat after reaching new highs it could be time to look for cannabis stocks to invest in for March.
During February investors have caught a glimpse of where the cannabis sector could go with stronger market sentiment. Primarily marijuana stocks could be heavily impacted by federal cannabis reform in 2021. Foundationally the U.S. cannabis market could continue to grow rapidly with new laws regarding banking and decriminalization. Also, Canadian cannabis companies could enter the U.S. market once the government has regulations in place.
In the meantime, many cannabis companies have been expanding and building a larger presence in the industry. Of course, top marijuana stocks like Trulieve Cannabis Corp. (OTC: TCNNF) have seen substantial growth since 2020 and could hold potential gains for 2021. But there is another area in the cannabis market that has gained more momentum in 2021.
Marijuana Penny Stocks Performance In The Market
Despite being a much more volatile part of the cannabis sector marijuana penny stocks have performed well to start the year. In reality, many cannabis stocks trading at lower levels have seen significant gains in January. In fact, some of seen triple-digit percentage gains in the market. By the same token, recent market trends have brought pot stocks to lower trading levels.
As a result, many cannabis stocks could be at decent levels to start a position in the cannabis market. At length, the cannabis industry has significant future growth potential and for the short term, this recent pullback could be a good consolidation before the cannabis sector’s next run.
When we talk about marijuana penny stocks technically, we are talking about cannabis stocks trading under a $5 value. In general, this is a high-risk, high reward area of the market and should be viewed in this manner. For the purpose of finding marijuana penny stocks for your watchlist in March. Let’s look at 2 cannabis stocks trading under the $2 range.
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Marijuana Stocks To Watch:
Harborside Inc. is a California cannabis retailer founded in 2006. Initially, the company was awarded one of the first six licenses granted in the United States. Currently Harborside has six dispensaries in California and Oregon. Harborside saw record revenue growth in Q3 of 2020. In fact, 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% was driven by improved harvest yields and higher wholesale volumes.
At the present time, it seems Harborside has begun expanding again and could continue to grow its presence in California this year. In 2021 Harborside has seen a string of administrative and executive changes. In January the company announced that Chief Operating Officer Greg Sutton stepped down from his post on January 15th. Recent changes could be part of the company’s restructuring for future growth.
HBORF stock is up 26.75% year-to-date with a high of $2.54 on February 16th. Since the HBORF stock has fallen to $1.95 to close the month of February. According to analysts at Stock Invest HBORF stock could rise 66.62% during the next 3 months. This is based on the stock’s short-term market trends. With this in mind, HBORF stock is a top marijuana penny stock to watch heading into March.
Indus Holdings, Inc.
Indus Holdings, Inc. is a cannabis company with production capabilities, that include cultivation, extraction, and manufacturing. Additionally, the company specializes in brand sales, marketing, and distribution. The company has an extensive portfolio of brands is a distributes its own cannabis products. In addition, Indus also services an extensive portfolio of brands and licensed retailers. In January Indus announced expansion efforts to a new cultivation and processing facility. Specifically, these plans include building a state-of-the-art cultivation and processing facility to produce high-quality cannabis.
This week on February 24th Indus announced it will be presenting at the Benzinga Cannabis Capital Conference taking place on February 25th-26th. In fact, George Allen, Chairman of the Board for Indus will participate in a panel discussion. On February 16th Indus announced it would release its Q4 2020 and full-year results on Monday, March 1st after the close.
INDXF stock is up 55.26% year-to-date with a high of $2.00 in February. Currently INDXF stock closed the week at $1.87 on February 26th the stock is up 5.65% for the day. According to Wallet Investor INDXF stock has a one-year forecast target price of $2.786. As INDXF stock continues to show momentum in the market it’s a cannabis stock to watch under $2.00.