Short-Term Investing In Cannabis Penny Stocks
Top marijuana stocks continue to show substantial volatility in December trading. One area that investors trade to take advantage of this volatility in is marijuana penny stocks. In 2021 cannabis stocks under $5 took investors on a wild ride in the first quarter of the year. Peaking in February most cannabis stocks have been declining in the market reaching new lows in December. This is mostly because the best cannabis stocks to buy have been trading in correlation to federal cannabis reform.
Now that it seems evident there will be nothing passing in Congress all the momentum from the hype of ending prohibition is gone from the sector. For new investors, this could be a good opportunity to find top penny pot stocks at lower price points. Known as some of the more volatile pot stocks, cannabis penny stocks have seen significant price swings in 2021. Because of these price swings more investors prefer to trade them using short-term trading methods.
In general, investors use day trading and swing trading techniques to produce gains in the market. This allows them to produce gains in the short term with penny stocks that allow for larger positions with less capital. Because of the volatility in the market penny stocks are considered a higher-risk investment. Before making a trade it’s always important to investigate a company’s earnings and stock patterns. Finding the best-performing companies and establishing the best entry points for your investments can help you become a successful trader.
Could We See Upside For Cannabis Stocks Now?
It’s possible that now without the pressure from federal cannabis reform looming over marijuana stocks they may begin to trade off other market fundamentals. As we continue to see a Santa Claus rally in the market top cannabis stocks could begin to regain some momentum. Let’s look at 2 top marijuana stocks to add to your watchlist in December 2021.
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Best Marijuana Stocks To Watch Before Next Year
- Jushi Holdings Inc. (OTC: JUSHF)
- Red White & Bloom Brands Inc. (OTC: RWBYF)
Jushi Holdings Inc.
In the US Jushi Holdings Inc. is a cannabis and hemp company that is expanding its presence in the medical and recreational cannabis markets. Primarily, the company is building a portfolio of branded cannabis and hemp-derived assets for the American market. At the present time, Jushi operates 27 dispensaries under the BEYOND/HELLO brand nationwide. Additionally, Jushi has 31 retail licenses in the US, and its national brand of cannabis dispensaries Beyond/Hello continues to see growth online and in-store. In October the company announced it secured a $100 million acquisition facility from Sunstream Bancorp Inc. Additionally, the company opened its 2nd retail location in Virginia.
In November Jushi reported its third-quarter 2021 results with revenue of $54 million up 116.7% year over year. The company produced a net income of $38.2 million an improvement of $68.2 million. In addition, Jushi saw an Adjusted EBITDA of $6.4 million an increase of 124.9% from Q3 2020. As a result, the company produced a gross profit of $24.5 million an increase of 99.6% year over year. Also, the company launched new branded cannabis products in the commonwealth of Virginia. Jushi will debut its brand The Lab, vaporizable cartridges, and Tasteology its chewable line. In Q3 Jushi expanded its Nevada footprint and launched flower sales in Virginia.
JUSHF Stock Performance
JUSHF stock closed on December 9th at $3.97 up 6.58% in the past five trading days. Currently, the stock has a 52-week price range of $3.26-$9.063. According to analysts at Tip Ranks JUSHF stock has a 12-month average price target of $7.36 per share. Specifically, this would represent an upside of 81.71% from its last trading price of $3.97.
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Red White & Bloom Brands Inc.
Next up is Red White & Bloom Brands Inc. a company positioning itself to be one of the top multi-state operators in the US cannabis industry. Primarily, the company is expanding in the legal cannabis and hemp markets with retail locations in Michigan, Illinois, Massachusetts, Arizona, Florida, and California. To highlight, RWB made the acquisition of all Florida operations from Acreage Holdings Inc. (OTC: ACRHF). As a result, 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 August the company closed the acquisition of a 45,000 sq ft greenhouse 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.
In November RWB reported its third-quarter 2021 financials with revenue of $11.8 million up 93% year over year. The company’s EBITDA was $5.9 million for Q3 compared to a loss of $5.8 million in Q3 2020. RWB sustained a Q3 2021 net loss of $5.5 million compared to a loss of $9.5 million in Q3 2020.
Words From The CFO
“RWB is being very strategic in pursuing vertical integration only when there is value to be added. We aim to be asset-light and brand rich. Our strategy is to support the brands in the most profitable way. We have been putting the teams in place to support this strategy in each state where we operate. As RWB integrates vertically in multiple states, we anticipate that our margins will dramatically increase, enabling us to move toward profitability.”
Chris Ecken, RWB CFO
RWBYF Stock Performance
RWBYF stock closed on December 9th at $0.3542 down 32.81% in the past month. The stock has a 52-week price range of $0.335-$1.65 and is down 39.83% year to date. According to analysts at Gov Capital RWBYF stock has a 1-year forecast of $2.137 per share. As the cannabis sector continues to show upside these could be top cannabis stocks to watch to end 2021.
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