Top Cannabis Stocks In Q2 2022
Are July’s top marijuana stocks on your watchlist? US cannabis companies have suffered as a result of the federal cannabis reform’s delays while making billions of dollars yearly. When trading in a market like this one, day traders and swing traders often earn the most money. Some long-term cannabis investors choose to use short-term tactics to trade around their long-term core positions. This makes it possible for them to profit from daily stock price swings. The fact that US MSOs are only allowed to trade on the OTC Markets is one factor contributing to their much lower trading levels.
Cannabis companies are still not allowed to operate in the US according to federal law, hence they are unable to trade on major US exchanges. A bipartisan plan that would provide US marijuana companies access to financial services and permit them to list on stock exchanges was introduced in Congress on Thursday. The Capital Lending and Investment for Marijuana Businesses CLIMB Act‘s major sponsors are Representatives Guy Reschenthaler (R-PA) and Troy Carter (D-LA). The cannabis sector would theoretically have more financial lending and investment choices. It accomplishes this by lending assistance to existing government agencies and commercial financial institutions.
Trading Marijuana Penny Stocks
For those who are unfamiliar, penny stocks are any equities that trade for less than the benchmark price of $5. Generally speaking, cannabis penny stocks are notorious for having dramatic price swings that many cannabis investors exploit temporarily. Particularly, many active traders employ day trading and swing trading tactics to generate returns with short-term holdings. Many prominent US MSOs, like Cresco Labs Inc. (OTC: CRLBF) and Curaleaf Holdings Inc. (OTC: CURLF), are trading at values similar to those of penny stocks in July. In these circumstances, these lowered price points may provide retail investors with viable short- and long-term investment opportunities.
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Top Marijuana Penny Stocks For Q3 2022
- Planet 13 Holdings Inc. (OTC: PLNHF)
- TILT Holdings Inc. (OTC: TLLTF)
- Fire & Flower Holdings Corp. (OTC: FFLWF)
Planet 13 Holdings Inc.
In 2021, the Planet 13 megastore opened in Orange County, becoming the biggest cannabis dispensary complex in California. The Nevada-based company has been recognized for its manufacturing, dispensary, and cultivation operations along the Las Vegas Strip. Planet 13 is well-known for its 112,000-square-foot Superstore dispensary on the Las Vegas Strip. Planet 13 is home to two of the largest superstore dispensaries in the world. A smaller replica of the company’s main store, the Medezin store, combines a smaller dispensary retail space, also opened. The company completed the vertically integrated purchase of Next Green Wave in California on March 2.
According to corporate data released in May, sales for the first quarter of 2022 were $25.7 million, an increase of 8% over the previous quarter. Additionally, the company generated $2.6 million in Adjusted EBITDA in the first quarter of 2022. As a result, the corporation lost $2.1 million in the first quarter of 2022 rather than $6.0 million at the same time as the previous year. The gross profit was $12.9 million, or 50.2 percent, less than the gross profit from the previous year, which was $13.0 million, or 54.7 percent. Planet 13 said that it acquired a lease for its second and third dispensaries in Florida in May and June. On July 5th the company closed on a Florida property acquisition for a 23-acre parcel with a 10.500 square foot building.
PLNHF stock closed on July 6th at $1.21 down 24.69% in the past month. Currently, the stock has a 52- week price range of $1.08-$6.81 and is down 59.29% year to date.
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TILT Holdings Inc.
TILT Holdings Inc., a company focusing on global markets, provides business solutions to cannabis entrepreneurs aiming to build a global brand. The European Union, the United States, Canada, Israel, Mexico, and South America are among the main markets served by the companies. To be clear, TILT has a sizable portfolio of companies that provide manufacturing, cultivation, technology, and hardware to other leading cannabis companies. In general, the company supplies medical-grade inhalation devices to the European and American markets for medicinal cannabis.
TILT reported sales of $42.4 million for the first quarter of 2022 as opposed to $46.8 million for the same time in the previous year. Lower sales volume in the company’s inhalation division and price compression for the division’s bulk and house-branded wholesale cannabis products were the main causes of the decline. Additionally, gross profit before fair value adjustments was $9.4 million, or roughly 22% of revenue. This is down from $13.5 million, or roughly 29% of revenue, in the same quarter a year earlier. Importantly, Adjusted EBITDA decreased from $6.2 million to $1.5 million from the same time last year. To sell its goods initially in Ohio, TILT struck a new brand alliance in Q1 2022 with Timeless Refinery. Timeless is a client of the business that also uses inhalation technology.
TLLTF stock is trading at $0.18 on July 6th down 27.74% in the past month. The stock has a 52-week price range of $0.065-$0.538 and is down 20% year to date.
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Fire & Flower Holdings Corp.
Fire & Flower Holdings Corp. is a large adult-use cannabis retailer in Canada with over 85 corporate-owned locations. The company’s fully owned technical development subsidiary, Hifyre Inc., is developing a comprehensive retail operations plan. Additionally giving the business new high-margin revenue streams. Fire & Flower has formally entered the US cannabis market thanks to a clever license agreement with American Acres. Principally, this licensing deal and acquisition option with American Acres will allow Fire & Flower to access the cannabis markets in California, Arizona, and Nevada. The Fire & Flower subsidiary Hifyre also disclosed a strategic partnership with renowned American analytics firm BDSA.
Having reported its financial and operational results for the first quarter of fiscal 2022, Fire & Flower reported consolidated revenue for the period of $40.9 million, a decline of 4% from the prior quarter and a decrease of 7% from the same quarter of the prior year. Additionally, the business had a negative $2.3 million in consolidated Adjusted EBITDA for the quarter. In order to make the Humbles collection more accessible to Fire & Flower clients in North America, both online and in stores, the two companies have signed a strategic supply agreement. American Acres officially entered the California market when it changed its name to Fire Flower US Holdings. The company proved it is pursuing a digital strategy by completing the acquisitions of Wikileaf and PotGuide in September. In October, the company said that the Circle K co-location pilot program will continue.
FFLWF stock closed on July 6th, at $1.85 down 31.73% in the last month of trading. The stock has a 52-week price range of $1.71-$8.70 and is down 53.02% year to date.
Investing In Pot Stocks In July 2022
Given that the prices of the leading US marijuana stocks have dropped significantly in the first half of 2022, it may be time to keep a watch on them. By examining a company’s financial statements and news releases, you can decide whether assets are suitable for your portfolio and trading style. If you can read technical indicators and chart patterns, you might be able to make better-informed trading decisions. The current cannabis market volatility may present a chance for active traders in July.
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