Cannabis Stocks To Watch In January 2022
Are you looking for top marijuana stocks while the cannabis sector is down? For almost a year the best cannabis stocks have been experiencing declines with most setting new lows in the last 2 months. For the most part, these declines can be attributed mostly to delays with federal cannabis reform in the US. As these delays continue the cannabis sector is pricing in 2022 without federal legalization or reform. In recent weeks one of the best performing parts of the cannabis sector has also experienced significant declines.
In general cannabis REITs and ancillary cannabis companies performed the best in the cannabis sector in 2021. But have now declined significantly in January 2022. In the US many leading cannabis companies use marijuana REITs to expand their cultivation and processing facilities through triple net leases with long-term agreements. This has allowed cannabis REITs to build large long-term portfolios with some of the largest cannabis companies in the US.
As delays continue in Congress with ending prohibition cannabis REITs will continue to build their portfolio. Another area that’s positioned to grow alongside the cannabis industry is ancillary cannabis companies. In general, ancillary companies are those companies that support the cannabis industry without touching the actual plant. Some of these companies supply the equipment used to grow cannabis like hydroponic setups, lighting, and nutrients.
Best Cannabis Stocks For Long Term Investing
Because the top cannabis stocks are known for having substantial market volatility some investors prefer not to invest in the sector on a long-term basis. But there are some pot stocks that could offer investors better long-term positions. Initially, these could be marijuana stocks that also offer a dividend for long-term shareholders. In addition, throughout 2021 ancillary cannabis stocks also held their value better than vertically integrated pot stocks as the year progressed. Now with these cannabis stocks declining heavily in the last two months, it could be time to add them to your watchlist. Let’s look at 2 top marijuana stocks for your 2022 list right now.
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Best Cannabis Stocks To Watch This Week
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- Agrify Corporation (NASDAQ: AGFY)
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc., a real estate investment trust focused on the US-regulated cannabis sector, is one of the largest marijuana REITs. The corporation now has 7.7 million rentable square feet and 2.7 million square feet under construction. With a weighted average remaining lease period of 16.7 years, most of these properties are 100% leased. The corporation currently owns 103 properties in 19 states. IIP has spent $1.5 billion and promised another $391.7 million to reimburse renters for property renovations as of November 3rd. The company continues to purchase properties, particularly in Pennsylvania and Massachusetts, which will significantly increase its lease portfolio in 2021.
IIP released its third-quarter 2021 results in November, reporting total revenues of $53.9 million for the period. In general, the company made roughly $29.8 million in net income in the third quarter, or about $1.20 per diluted share. The corporation presently has $554.4 million in short-term investments and $127.3 million in cash. IIP announced a $1.50 per share dividend for the fourth quarter of 2021 in December. This works out to a $6 yearly dividend per common share. The company adds 27 properties to its portfolio in Colorado, Pennsylvania, and North Dakota by the end of 2021IIP released its Q4 2021 operations and investment capital markets activity on January 5th. The deal to exchange $2.3 million in cash and issue 1,684.237 shares for $110 million in exchangeable senior notes due in 2024 is one activity that could have dragged down IIPR stock.
IIPR Stock Performance
On January 10th, IIPR stock was trading at $211.98, down 15.34% over the previous five trading days. The stock is currently trading in a 52-week price range of $160.91-$288.02, up 11.29% in the past six months. The stock of IIPR has a 12-month median price objective of $290.00 per share, according to CNN Business experts. In this example, this would be a 36.81% increase over the previous trade price of $211.98.
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Agrify Corporation
Agrify Corporation, situated in the United States, manufactures precision hardware and software for the indoor agriculture industry. The company now offers vertical farming systems, integrated grow racks, and LED grow lights. Agrify’s cutting-edge technology and software solutions help businesses achieve the highest possible quality, consistency, and output at the lowest possible cost. The company’s overall services include consulting, engineering, and construction. Precision Extraction Solutions and Cascade Sciences, two well-known manufacturers of extraction, post-processing, and testing equipment and solutions for the cannabis and hemp sectors, have just been acquired by the company. In October, the company announced its entry into the Arizona cannabis industry, thanks to a partnership with Olive El Mirage.
In November, the company announced its third-quarter 2021 results, which showed sales of $15.8 million, up 460 % year over year. Agrify’s new bookings were $32.2 million, bringing its total backlog to $117.5 million. Specifically, Bud & Mary’s Cultivation, Inc. has announced the first comprehensive turnkey solution partnership with Agrify, which will see the company install up to 1200 vertical farming units at its 50,000 square foot facility. Curaleaf Holdings, Inc. (OTC: CURLF) has also entered a multi-year research and development arrangement with the company. This research will look at the impact of the cultivation environment on plant health and harvest output. The company reiterated its full-year forecast of $48-$50 million for 2021.
AGFY Stock Performance
AGFY stock is trading on January 10th at $8.97 down 3.81% for the trading day. The stock has a price range of $6.81-$35.94 and is down 28.03% in the past six months. According to analysts at Tip Ranks AGFY stock has a 12-month average price target of $34.67 per share. In this case, this would be an increase of 286.94% from its last trading level of $8.97.
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