Top Cannabis Penny Stocks In 2021
Right now, in August top marijuana stocks to buy are showing their traditional volatility in the market. Although most leading cannabis companies are reporting phenomenal earnings right now the market is not trending upward as these financials are reported. Instead, some of the leading cannabis stocks are still declining in the market after dropping very strong revenue growth. For the most part pot stocks have behaved in this manner so far this year.
In general, the only event that has had a positive impact on top marijuana stocks is US cannabis legalization. Since the November election of President, Biden investors began to feel that a Democratic-led Congress and a Democratic president in the White House would establish some form of federal cannabis reform. Unfortunately, almost 1 year later nothing has been passed in Congress to end federal cannabis prohibition.
This has taken its toll on investors and currently, top marijuana stocks are trading near their lowest values in 2021. One area that’s seen significant gains in 2021 is marijuana penny stocks. For those not familiar with penny stocks these are any equities trading under the $5 stock price. In the first quarter of 2021 top cannabis penny stocks saw significant gains until February 10th. After this, the cannabis sector has seen substantial declines that have persisted for over five months.
Understanding Penny Stocks And Pot Stocks In August
Before investing in penny pot stocks there are a few important factors to consider about the sector. For one the best marijuana penny stocks to invest in are known for displaying significant market volatility. In other words, cannabis penny stocks are a high-risk high reward area of the market.
Because of this more investors prefer to trade cannabis penny stocks using short-term methods. For investors, it’s important to do your due diligence on a company before starting in a position. Researching a company’s financials and watching how the stock performs in the market can help you achieve the best returns on your investments.
As the possibility of some form of federal cannabis reform occurring in 2021, this could be a good time to find top marijuana penny stocks for your watchlist in August. At the time being many cannabis penny stocks are trading at some of their lowest stock prices. With this in mind, let’s take a closer look at some top cannabis penny stocks for your list this week.
Top Marijuana Penny Stocks To Watch In August
Fire & Flower Holdings Corp.
At the present time, Fire & Flower Holdings Corp. is a leading adult-use cannabis retailer with more than 85 corporate-owned stores in its network. Currently, the company’s wholly-owned technology development subsidiary, Hifyre Inc., is advancing its retail operations model while providing additional independent high-margin revenue streams for the company. Fire & Flower entered the U.S. cannabis market through a strategic licensing partnership with American Acres. In detail, this licensing partnership and acquisition option with American Acres gives Fire & Flower entry into the California, Arizona, and Nevada cannabis markets. Additionally, Fire & Flower subsidiary Hifyre entered into a strategic agreement with leading U.S. analytics company BDSA.
The company reported fiscal first-quarter 2021 revenue of $44.1 million up 91% from the prior year. Marking, Fire & Flowers fourth consecutive quarter of positive adjusted EBITDA with $2.3 million. The company’s Hifyre digital retail platform generated $2.8 million in Fiscal Q1 an increase of 252% year over year. Fire & Flower sustained a net loss of $61.6 million in the first quarter. In June the company announced a strategic supply agreement to expand its Humbles portfolio to Fire and Flower customers online and in-store throughout North America. In August Fire Flower officially entered the California market as American Acres changed its name to Fire Flower US Holdings.
FFLWF Stock Performance
FFLWF stock is trading at $0.75 on August 12th up 10.29% year to date. The stock has a 52-week price range of $0.60-$1.20 and has dropped by 19.35% in the past six months. According to an analyst at Market Beat FFLWF stock has a consensus price target of $01.85 per share. In essence, this would represent an increase of 146.7% from its last trading price of $0.75. Because of this FFLWF stock could be one of the best marijuana penny stocks to watch under $1 per share.
[Read More] Best Marijuana ETFs In 2021
Red White & Bloom Brands Inc.
Red White & Bloom Brands Inc. is positioning itself to be one of the top MSOs in the US cannabis market. At the present time, the company is expanding in the legal cannabis and hemp markets with retail locations in Michigan, Illinois, Massachusetts, Arizona, Florida, and California. RWB made the acquisition of all Florida operations from Acreage Holdings Inc. (OTC:ACRHF). After the acquisition, RWB will have 8 retail stores in prime locations in Florida, a 114,000 SQ. foot facility, and a 400 Sq. foot office building.
In July RWB provided its Q1 2021 financial results with adjusted sales of $32.7 million an increase of 14.5% compared to Q4 2020. On August 4th the company closed the acquisition of a 45,000 square foot greenhouse sitting on 4.7 acres in Florida. The acquisition adds near-term cultivation capacity while the company works on its 114,0000 square foot facility in Sanderson Florida. Today RWB announced it would release its Q2 2021 financials on August 30th after the close.
RWBYF Stock Performance
RWBYF stock is trading at $0.7491 on August 12th up 28.71% year to date. The stock has a 52-week price range of $ 0.604-$1.65 and has declined by 15.99% in the last month. According to analysts at Wallet Investor RWBYF stock has a 1-year forecast of $1.276 per share. Currently, these are some of the lowest prices RWBYF stock has seen in 2021.