Marijuana Stocks And Current Market Activity
In November the cannabis sector has continued to see market declines that have left top marijuana stocks at the lowest trading levels seen in 2021. One part of the cannabis sector that has seen a significant drop in value is Canadian cannabis stocks. After reaching new highs in the first quarter Canadian pot stocks have fallen to levels that could have some possible potential for investors.
Although the Canadian cannabis market has been growing in 2021 it has not been enough for these companies to compete with the growth delivered from leading US cannabis companies. As the year progressed the need for Canadian cannabis companies to enter the US market seemed more evident. At the present time, many Canadian companies have already established an entry into the American cannabis market.
But until Congress ends cannabis prohibition there, they are not able to fully enter the US cannabis industry. Some have established CBD products they are able to sell in the states. Other companies have acquired US companies that will be instrumental in their presence in the US. In addition to the future growth Canadian cannabis companies could produce in the US they also have established themselves internationally. In the event, Congress passes federal marijuana legalization we could see some upside for Canadian pot stocks.
Finding The Best Pot Stocks To Invest In Right Now
Before investing in any cannabis stock, it’s important to always do your own due diligence on the company. Researching a company’s financial results and studying how a stock performs in the market can help you find the best cannabis stocks to invest in. Many investors make a watchlist of stocks to follow in the market. This can help you identify the best entry points for your positions and could help you produce the best returns. In general, Canadian cannabis stocks could have future potential for traders. Let’s take a close look at 2 top Canadian marijuana stocks to add to your list this month.
[Read More] Top Marijuana Stocks for November 2021
Canadian Marijuana Stocks To Watch In 2021
Aurora Cannabis Inc.
Aurora Cannabis Inc. is another Canadian company that produces and distributes medical cannabis products globally. In 20212 the company announced its entry into the US market through the acquisition of Reliva a CBD producing company in America. Additionally, Aurora also expanded its San Rafael ’71 portfolio with the launch of 3 new proprietary cultivars. During the second quarter, the company delivered an $8 million shipment of cannabis to Israel. Primarily, the company is working on restructuring its balance sheet and has fulfilled the inaugural shipment to the French medical cannabis pilot program.
Aurora announced its fiscal 2021 fourth-quarter results with total cannabis net revenue of $54.8 million. The company’s balance sheet remains strong with $440.9 million in cash as of June an improvement of $404.3 million year over year. Additionally, the company has an adjusted EBITDA loss of $13.9 million an improvement of $17.6 million from the prior year. Aurora still is the #1 Canadian LP in the global medical cannabis market and says its business transformation plan is on track. The company will deliver its first-quarter fiscal 2022 financials on November 9th.
ACB stock is trading at $6.97 on November 3, 2021, down 22.82% in the last six months. Currently, the stock has a 52-week price range of $4.38-$18.98 down 16.97% year to date. According to analysts at CNN Business, ACB stock has a 12-month median price target of $5.51 per share. This would be a downside of 20.13% from its current trading price.
High Tide Inc.
High Tide Inc is a retail-focused cannabis corporation that also manufactures and distributes consumption accessories. In general, High Tide has a portfolio of companies that include a dominant Canadian cannabis retail chain, and a global manufacturer and distributor of cutting-edge smoking accessories. Primarily, the company has established the largest accessories eCommerce platform in the world. Currently, High Tide has a footprint with 103 branded retail locations across Canada. In October High Tide closed on the acquisition of Blessed CBD and is entering the UK Market.
In addition, the company completed the acquisition of Smoke Cartel Inc and launched the sale of hemp-derived CBD products under its Grasscity brand. High Tide continues to see rapid expansion into the US cannabis market through the acquisition of a leading online retailer Dankstop. The company reported its third-quarter 2021 results with revenue increasing by 99% to $48.1 million. As a result, gross profits increased by 75% to $16.7 million year over year. In detail, the company has an Adjusted EBITDA of $1.5 million compared to $3.4 million the prior year. The difference in the adjusted EBITDA is primarily related to High Tide’s uplifting to the NASDAQ.
HITI stock is trading at $6.08 on November 3rd up 10.49% in the past five trading days. Currently, the stock has a 52-week price range of $3.00-$13.29 up 96.37% year to date. According to analysts at Tip Ranks HITI stock has a 12-month average price target of $13.86 per share. In this case, this would represent an upside of 128.29% from its current trading price.