Pot Stocks And The US Cannabis Market
Are you looking for different ways to invest in top marijuana stocks in 2021? To start October top cannabis stocks are trading near some of the lowest market values so far this year. In the past several weeks the House has passed several federal cannabis legislations that will help the US cannabis market if it makes it through the Senate. But Senate Majority Leader Chuck Schumer already stated he would not advance marijuana banking reform before legalization.
This puts a monkey wrench on the House and shows that the hold-up for any type of reform could continue for the moment. If this pushes cannabis reform until 2022, we could see the cannabis sector either consolidate lower as the markets pull back or continue trading near these lower trading levels. For investors looking to invest in the cannabis industry, this could be a good time to make a list of top marijuana stocks to invest in.
Although federal cannabis reform may not happen this year it’s highly likely to happen next year. With the cannabis sector growing rapidly the US cannabis market is predicted to more than double in the next five years. Finding cannabis companies with strong financials and growth potential can help you solidify the best investments. Currently, there are many ways to take advantage of the current value in the cannabis sector.
Ancillary Cannabis Stocks And Other Ways To Invest In The US Market
Ancillary cannabis stocks have become one way more investors are gaining exposure to cannabis. Primarily, ancillary cannabis companies are those that support the cannabis industry without touching the actual plant. One area that has continued to perform for investors in this category is cannabis REITs. Although there are very few cannabis REITs now the ones like Innovative Industrial Properties, Inc. (NYSE:IIPR) have held their value through this recent downtrend. Some of these marijuana REITs also provide a dividend for long-term shareholders.
Another way to invest in cannabis stocks is through vertically integrated companies. These companies produce cannabis from seed to sale and are the core of the industry. In 2021 these companies have seen substantial revenue growth and continue expanding their market share. Let’s look at 2 top marijuana stocks for your list in October 2021.
Marijuana Stocks To For Your October Watchlist
Power REIT (PW)
Power REIT (PW) is a specialized real estate investment trust focused on sustainable real estate with attractive risk-adjusted returns. Currently, Power REIT owns a growing portfolio of Controlled Environment Agriculture or CEA properties in the form of greenhouse and associated processing space. Specifically, the properties are leased to tenants that are licensed to produce medical cannabis at the facilities. The properties are targeting expansion and Power REIT has the option to fund the capital costs of property upgrades. Power REIT’s greenhouse properties are an environmentally friendly cultivation solution.
In 2021, Power REIT expanded its Colorado footprint by acquiring a 10-acre property that includes the construction of a 12,000 square foot greenhouse space. Generally, this gives the company investment properties across Southern Colorado with over 83 acres and 383,328 square feet of CEA facilities. In September the company acquired a 556,146 square foot cannabis greenhouse cultivation and processing facility for $18.4 million. This facility will the largest cannabis cultivation facility in Michigan and one of the largest in the US. In Power REITs latest results net income per share increase 148% and Core FFO per common share increased 102%.
PW Stock Performance
For Q2 the company paid a dividend of $0.4834 per share each quarter which would be a total of $1.9375. The dividend is payable on September 15th to stockholders of record as of August 15, 2021. PW stock closed on October 1st at $49.97 up 19.65% in the past month. The stock has a 52-week price range of $18.12-$52.00 and is 87.06% year to date. According to analysts at CNN Business PW stock has a 12-month average price target of $63.00 per share. This would represent an upside of 25.02% from its last trading price.
Ayr Wellness Inc.
Ayr Wellness Inc. is the fourth largest cannabis company in the Florida cannabis market. As it stands, Ayr has 42 operating dispensaries in Florida and a total of 56 stores nationwide. In addition, the company has entered the Illinois market with the acquisition of Herbal Remedies Dispensaries, LLC. Also, Ayr received a provisional license to sell adult-use cannabis at greater Boston dispensaries in Massachusetts. In Specific Ayr has agreed to acquire Tahoe Hydro an award-winning cultivator and high-quality cannabis flower produce in Nevada. Recently, Ayr Wellness Partner Land of Lincoln was awarded a retail dispensary license in Illinois through the state’s lottery process. On September 29th Ayr launched Sun Gems THC-infused gummies throughout its Florida dispensaries.
In September the company signed an agreement to acquire the owner of Levia cannabis-infused hard seltzers. In August Ayr reported its second-quarter 2021 results with revenue of $91.3 million up 222% year over year. To highlight, the company had an adjusted EBITDA was $27.4 million on a US GAAP basis up 225% year over year. Ayr sustained a US GAAP operating loss of $24.9 million which included one-time expenses, and non-operating adjustments of $52.3 million. The company raised its 2022 revenue target to $800 million with a $300 million AEBITDA. In addition, Ayr provided a 3Q 2021 guidance of $100 million in revenue.
AYRWF Stock Performance
AYWRF stock closed on October 1st at $26.08 up 9.44% in the last five trading days. The stock has a 52-week price range of $20.00-$37.50 and is up 10.50% year to date. According to analysts at Tip Ranks AYRWF stock has a 12month average price target of $54.88 per share. In this case, this would be an increase of 110.43% from its current trading price.
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