Cannabis Stocks in Focus: Weekly Watchlist

Stay Updated with These Top Marijuana Stocks

As we enter the fourth quarter of 2023, the cannabis industry and top marijuana stocks continue their remarkable growth trajectory, offering investors a wealth of opportunities in the form of marijuana penny stocks. With increasing legalization and shifting public perception, the marijuana market has experienced tremendous expansion, and it shows no signs of slowing down. According to recent industry reports, the global cannabis market is projected to reach a staggering $97.35 billion by 2026, driven by both medical and recreational usage. As the sector flourishes, investors keep a keen eye on the top marijuana penny stocks, hoping to capitalize on this green rush.

While the allure of potential profits is undeniable, it’s essential to approach marijuana penny stocks with caution. Trading in this sector can be highly volatile, making it crucial to employ technical analysis and proper risk management strategies. Using technical analysis tools like moving averages, RSI (Relative Strength Index), and MACD (Moving Average Convergence Divergence), investors can gain insights into stock price trends, identify potential entry and exit points, and mitigate risks.

Additionally, maintaining a disciplined approach to risk management, such as setting stop-loss orders and diversifying your portfolio, is vital to navigating the inherent volatility of the marijuana stock market. As we delve deeper into the fourth quarter of 2023, staying informed about the top marijuana penny stocks and employing a prudent investment strategy will be vital to maximizing potential gains while managing risks effectively.

[Read More] Top Marijuana Stocks To Invest In Today For Future Profits

Weekly Marijuana Market Watch: Stocks to Keep an Eye On

1. The Cannabist Company Holdings Inc. (OTC: CBSTF)
2. Glass House Brands Inc. (OTC: GLASF)
3. StateHouse Holdings Inc. (OTC: STHZF)

The Cannabist Company Holdings Inc.

With licenses in 16 U.S. states, The Cannabist Company—formerly Columbia Care—is one of the biggest and most seasoned producers, makers, and suppliers of cannabis products and associated services. The company runs 125 locations, including 31 manufacturing and growing facilities, ones still under construction, and 94 dispensaries. One of the first multi-state cannabis providers in the United States, Columbia Care, is now known as The Cannabist Company. It offers market-leading goods and services for both medical and adult usage. The company introduced Cannabist, its retail brand, in 2021 and used proprietary technological tools to build a nationwide network of dispensaries. The company offers products spanning flower, edibles, oils, and tablets, and manufactures popular brands, including Seed & Strain, Triple Seven, Hedy, gLeaf, Classix, Press, and Amber.

The third-quarter 2023 U.S. GAAP financial highlights

In Q3 2023, the company reported revenue of $129,183 thousand, nearly unchanged from the previous quarter, showing a 0.0% quarter-over-quarter (QoQ) change. However, when compared to the same period in 2022, there was a 2.6% year-over-year (YoY) decrease in revenue.

The gross profit for Q3 2023 was $37,142 thousand, representing a substantial 28.7% decrease from the previous quarter (Q2 2023), which reported a gross profit of $52,122 thousand. When compared to Q3 2022, the gross profit remained relatively stable, showing a minimal 0.0% change.

The adjusted gross profit, which excludes certain items, for Q3 2023 amounted to $50,275 thousand, down 3.6% from Q2 2023. Compared to the same period in 2022, there was an 8.3% YoY decrease in adjusted gross profit. The adjusted gross margin for Q3 2023 stood at 38.9%, showing a 144 basis point (bps) decrease from the previous quarter and a 395 bps decrease compared to Q3 2022.

The company reported an income (loss) from operations of ($19,330) thousand in Q3 2023, which was significantly different from the $49 thousand income reported in Q2 2023. In comparison to Q3 2022, which reported an income (loss) of ($18,710) thousand, there was no YoY change.

The adjusted EBITDA for Q3 2023 was $20,493 thousand, showing a slight 0.9% increase from the previous quarter. However, when compared to the same period in 2022, there was a 2.4% YoY decrease in adjusted EBITDA. The adjusted EBITDA margin for Q3 2023 was 15.9%, representing a 14 bps increase from the previous quarter and a five bps increase from Q3 2022.

The net income (loss) for Q3 2023 was ($36,180) thousand, marking a negative change from the net loss of ($29,037) thousand reported in Q2 2023. There was no YoY comparison provided for net income (loss) in the press release.

CBSTF Stock Performance

CBSTF stock closed on November 17^th  at $0.35, down 58.33% in the last month of trading. In this case, the stock has a 52-week range of $0.27-$2.06, down 5333% year to date.

[Read More] 2023’s Cannabis Boom: Profiling the Leading US Marijuana Stocks with Double-Digit Gains

Glass House Brands Inc.

Glass House Brands is a prominent player in the US cannabis industry, specializing in premium cannabis cultivation, manufacturing, and retail operations. Headquartered in California, Glass House Brands has established itself as a vertically integrated company, emphasizing sustainability and high-quality products. They have a significant presence in the California cannabis market, which is known for its size and growth potential. Glass House Brands operates a chain of retail stores, and their strategic expansion efforts have led to the opening of several new locations, further solidifying their footprint in the state.

Glass House Brands is a company that supplies premium cannabis products to meet the increasing demand for cannabis in California, both for medical and recreational purposes. They stand out in the business for their dedication to sustainable farming practices and environmental responsibility. Glass House Brands’ presence and reputation position them as a vital player in the expanding cannabis market, making them a firm of interest to investors and consumers alike. California continues to be a leading state in cannabis legalization and usage.

Third  Quarter 2023 Highlights

Glass House Brands has reported significant achievements and robust financial results in its third quarter of 2023. Notably, their cash reserves surged to $37.9 million from $22.7 million in the previous quarter, attributed in part to a $12.8 million inflow from a Series D Preferred Equity Fund Raise. The company witnessed a remarkable increase in operating cash flow, reaching a record $9.1 million compared to $8.3 million in the second quarter of 2023. Adjusted EBITDA also showed substantial growth, standing at $10.7 million, up from $9.5 million in the previous quarter.

The standout figure in their Q3 results was revenue, which hit a record $48.2 million, marking an 8% sequential increase and an impressive 71% year-over-year growth. Despite this, gross margin saw a slight dip from 55% in the second quarter of 2023 to 54%, though it was significantly higher than the 31% reported in the prior year’s period. Additionally, the company reported a remarkable 142% year-on-year increase in Q3 Biomass revenue, with production up by 36% year-over-year.

Looking ahead, Glass House Brands issued guidance for Q4 2023, projecting revenues between $38 million and $40 million, representing a 21% increase compared to Q3 2022. However, the guidance anticipates a 19% sequential decline from the mid-point due to adverse weather conditions affecting flower output.

GLASF Stock Performance

GLASF stock ended at $4.91 on November 17^th, up 11.34% in the last month of trading. In this case, the stock has been trading in a 52-week range of $1.78-$5.11. GLASF stock is up 157.07% year to date.

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StateHouse Holdings Inc.

StateHouse was formed by combining Harborside, Loudpack, Urbn Leaf, and Sublime—four progressive legacy businesses with a lengthy track record in the California cannabis industry. One of the first six businesses in the US to be granted a cannabis license was Harborside. It used to be called Harborside and currently has 13 sites in Oregon and California. StateHouse increased its footprint in California in 2021, and this pattern is anticipated to continue. The crop capacity of StateHouse’s Salinas growing facility has more than doubled, enabling year-round production.

Q2 2023 Highlights

• Q2 2023 net revenues were $25.3 million, compared with $34.6 million in Q2 2022.
• Retail revenues were $13.0 million, representing 51.3% of total sales for Q2 2023, compared to $18.5 million or 54.9% of total sales in Q2 2022.
• Gross profit before adjustments for biological assets was $12.3 million in Q2 2023, compared with $14.7 million in Q2 2022.
• Consolidated gross margins improved to 49.9% in Q2 2023, compared to 46.6% for Q2 2022.
• Q2 2023 cultivation yields in the Company’s Salinas facility were up 34% over Q1 2023. Relative to Q2 2022, yields were up 23% per sq/ft due to improved lighting and growing techniques. TOPS, the Company’s high-value customer loyalty program, as of August 29, 2023, had 281,000 loyalty members enrolled.

STHZF Stock Performance

STHZF stock closed at $0.02 on November 17^th  and has a 52-week price range of $0.008-$0.185. In this case, STHZF stock is down 60% in the last month of trading.

This Week’s Cannabis Stock Picks for Investors

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