Top Canadian Cannabis Stocks In December 2021
In 2021 the top Canadian marijuana stocks took investors on a volatile ride. After reaching new highs in the first quarter delays with US federal marijuana legalization have caused a decline in the entire cannabis sector. In general, most Canadian companies felt the brunt of this drop due to them having the most to gain from entering the US market. But Canadian cannabis sales have continued to grow throughout this year. In October the country delivered record sales of C$364.2 million an increase of 35.7% year over year.
This year leading Canadian cannabis companies have continued to establish their entry into the US cannabis market. Some have done this through strategic acquisitions others have established CBD sales in the US. Although in 2021 Canadian cannabis companies have not performed as well as their US counterparts, they have shown growth through the pandemic. Currently, most Canadian pot stocks have erased all the gains seen in 2021 these lower trading levels could offer investors the opportunity to find value before 2022.
One area that investors could find gains in at the present time is Canadian marijuana penny stocks. For those not familiar with penny stocks these are any stocks trading under the $5 stock price. Known to be a higher risk-reward investment many active traders prefer using short-term methods to secure returns with penny stocks.
Short Term Trades In Canadian Pot Stocks
In general, some investors use day trading and swing trading techniques to produce gains with cannabis penny stocks. In the first quarter of 2021 Canadian marijuana penny stocks delivered the most upside for traders until February. Now in December current trading levels could produce some upside with better trading for the cannabis sector.
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Before investing in penny pot stocks it’s important to do your research on these companies. Looking into a company’s earnings and studying how a stock performs in the market can help you produce the largest returns from your investments. With this in mind, let’s look at 2 top Canadian marijuana stocks to watch before January 2022.
Top Canadian Cannabis Stocks For Your 2022 Watchlist
- Cronos Group Inc. (NASDAQ: CRON)
- OrganiGram Holdings Inc. (NASDAQ: OGI)
Cronos Group Inc.
Cronos Group Inc. is a multinational cannabis manufacturer and distributor with operations on five continents. The company has built a cannabis brand portfolio that has been well received by Canadian cannabis consumers. Cronos also disclosed that it had paid $110.4 million for options to buy a 10.5 percent share in PharmaCann. Notably, the purchase will be carried out based on a number of conditions, including the status of federal cannabis legalization in the United States. PharmaCann’s six manufacturing facilities and 23 dispensary sites would be included in the acquisition. The business debuted a new line of dual-flavor cannabis edibles earlier this year. Adult consumers are thought to love the flavor of these new gummies. A default status report was filed in November, and it revealed the receipt of a Nasdaq listing delinquency letter.
Cronos’ earnings during the second quarter of 2021 fell short of expectations. In Q2 2021, the company had net sales of $15.6 million, up to $5.7 million from the previous quarter. Cronos lost $15.8 million in the second quarter of 2021, up $12.9 million year over year. The business attributes the loss to a $12 million rise in inventory write-downs in the ROW sector in Q2 2021. As of now, the company has an adjusted EBITDA loss of $49.8 million in the second quarter, up to $22.8 million from the second quarter of 2020.
CRON Stock Performance
On December 29th, CRON stock finished at $3.85, down 9.62% in the previous five trading days. The stock is down 44.52% year to date, with a 52-week price range of $3.81-$15.83. CRON stock has a 12-month consensus forecast price target of $5.10 per share, according to CNN Business analysts. This projection represents a 32.11 percent increase over the stock’s most recent trading price of $3.85.
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OrganiGram Holdings Inc.
OrganiGram Holdings Inc. is one of Canada’s most well-known licensed manufacturers of cannabis and cannabis-based products. The company is recognized for producing high-quality, indoor-grown cannabis for both medical and recreational markets. Organigram is also expanding its foreign business connections to strengthen its position in the global cannabis market. The company is currently expanding its wholesale cannabis shipping and selling items online. SHRED’ems Gummies is a high-quality addition to Organigram’s SHRED product line. Edison JOLTS is also the first flavored high-strength THC ingestible extract in Canada.
To revitalize its product line, OrganiGram has manufactured 84 new SKUs since July 2020. In Q3, two new high-potency strains under the higher-margin Edison brand were introduced. Q4 net sales of $24.9 million compared to $20.4 million in Q4 fiscal 2020, according to the company’s fourth-quarter and fiscal 2021 earnings. In addition, the adjusted gross margin in Q4 Fiscal 2021 was $3 million, or 12% of net revenue. The company now has a net loss of $26 million, compared to a net loss of $38.6 million in the preceding year’s same quarter. Organigram predicted that sales in the first quarter of fiscal 2022 will be higher than in the fourth quarter of fiscal 2021. In December the company made an additional investment in Hyasynth Biologicals a leading cannabinoid biosynthesis company bringing its total investment into the company $7.5 million.
OGI Stock Performance
OGI stock closed on December 29th at $1.78 down 11.44% in the last month. The stock has a 52-week price range of $1.31-$6.45 and is up 33.83% year to date. According to analysts at CNN Business OGI stock has a 12-month median price target of $2.31 per share. In this case, this would represent an upside of 29.31% from its last trading price of $1.78.
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