Are Top Cannabis Stocks Primed For A Rebound?
Are you looking for different ways to gain exposure to top marijuana stocks? In 2021 the cannabis industry has continued to grow rapidly with new states legalizing cannabis on the medical and recreational fronts. But the best cannabis stocks to invest in having experienced declines for over nine months. In October some of the top pot stocks to buy are trading at the lowest levels investors have seen this year.
After rallying at the beginning of the year cannabis investors have been watching marijuana stocks fall month after month. So, the question is had we reached the bottom for the cannabis sector? In truth, the best marijuana stocks to buy saw significant upside in 2020 and the first part of 2021. This was mostly because investors believed the federal government would legalize marijuana earlier in the year.
Now as we proceed through the fourth quarter it becomes less likely they will pass marijuana this year. But it’s highly unlikely Congress can continue to prolong cannabis banking for too much longer. This would be a major catalyst for the cannabis market and could send pot stocks to much higher trading levels. With the overall market reaching new highs we could see some better trading for cannabis stocks in November.
Investing In Top Pot Stocks In Q4 2021
Before investing in marijuana stocks it’s important to do your research on a company before starting a position. Following how a stock performs in the market and using trading tools to find the best entry point can help you establish the best returns on your investments. In addition, looking for companies that produce strong revenue growth can help you establish the best long-term positions. There are many ways to gain exposure to the cannabis industry.
[Read More] Best US Marijuana Stocks To Buy Right Now? 2 Names To Know This Week
Some investors use the traditional approach and start positions in vertically integrated cannabis stocks. These are the companies that produce cannabis from seed to sale handling each step of the process when bringing it to market. Other investors prefer trading ancillary cannabis stocks because they do not touch the actual plant. In some cases, ancillary marijuana stocks have shown better stability than pure-play pot stocks. Let’s look at 2 top US marijuana stocks for your list before November.
Best Cannabis Stocks For Your Watchlist To Close October
- AFC Gamma, Inc. (NASDAQ: AFCG)
- WM Technology, Inc. (NASDAQ: MAPS)
AFC Gamma, Inc.
AFC Gamma, Inc. is an institutional lender to leading cannabis companies with strong operations and cash-flow prospects. Established recently in 2020, the company specializes in real estate security and other collateral, and locations in states with favorable supply/demand fundamentals and legislative environments. Primarily, AFCG provides innovative and customized financing solutions through first-lien loans, mortgage loans, construction loans, and bridge financings. At the present time, AFC Gamma’s principles are now focused on the exponential growth of the cannabis industry. In October the company agreed to a credit upsize of $250 million 8.50% interest with an additional $100 million option with Verano Holdings Corp. (OTC: VRNOF).
AFC Gamma reported its Q2 2021 financials showing net income of $4.6 million or earnings of $0.34 per basic weighted average share of common stock. Additionally, the company saw distributable earnings of $5.8 million or $0.43 per basic average share of common stock. To highlight, in Q2 the company closed $71.3 million of new commitments and funded $77.8 million of new and existing commitments. As of August 1st, the company has a portfolio consisting of loan commitments worth $195.3 with $175.3 million of outstanding principal across 14 portfolio companies. In September the company raised its quarterly dividend by 13.2% to $0.43 per share. On October 4th the company posted a record $119.2 million in total new commitments during the third quarter of 2021. The company is expected to release third-quarter 2021 results on November 4th before the market opens.
AFCG Stock Performance
AFCG stock is trading at $23.76 on October 25th up 7.61% in the past month. Currently, the stock has a price range of $19.75-$23.80 and is up 10.24% in the past six months. According to analysts at Tip Ranks AFCG stock has a 12-month average price forecast of $26.67 per share. In this case, this would represent an upside of 12.25% from its current trading level.
[Read More] Luxembourg May Be The First European Country Legalize Recreational Marijuana
WM Technology, Inc.
WM Technology, Inc. is considered a driving force behind much of the legislative change in the cannabis industry in the past 10 years. Also known as Weedmaps this online listing marketplace is a major hub for cannabis consumers and cannabis companies. In general, the cloud-based SaaS solutions from WM Business provide an operating system for cannabis retailers. Specifically, WM Business’ tools support compliance with the complex, and constantly evolving regulations in the cannabis industry. In August Weedmaps announced a multi-year partnership with Kevin Durant, Thirty-Five Ventures, and a sponsorship deal with Boardroom. In September the company acquired leading cannabis CRM & marketing platform Sprout.
As it stands, Weedmaps has an estimated 10 million monthly active users and approximately 18,000 business listings in the U.S. In August the company reported its second-quarter 2021 financials and 2021 outlook. To highlight, the company delivered second-quarter revenue of $47 million. As a result, total revenue grew 21% year over year with US revenue up 55% from the previous year. In addition, the company reaffirmed prior full-year 2021 revenue of $205 million and adjusted EBITDA guidance of $50 million.
MAPS Stock Performance
MAPS stock is trading at $12.48 on October 25, 2021, heading into the close. The stock has a 52-week price range of $10.01- $29.50 down 7.49% in the past month. According to analysts at CNN Business MAPS stock has a consensus price forecast of $18.50 per share. In essence, this would represent an upside of 48.36% from its current trading level.
[Read More] Best Marijuana Stocks To Buy In October? 3 Ancillary Cannabis Stocks With Upside According To Analysts
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
