Top Marijuana Stocks for September 2023
As we enter this week in September 2023, the cannabis industry is again in the spotlight, with marijuana stocks rising. As the marijuana industry gains traction, investors and traders alike are keeping an eye on the best marijuana stocks to watch this week. With recent changes in cannabis regulation and public perception, the market has intriguing prospects. Still, it’s critical to approach it with a strategic perspective and correct risk management tactics to navigate the inherent volatility.
The cannabis industry has experienced a spectacular recovery in recent months, fueled in part by increased acceptance of cannabis for both medical and recreational use in various locations. Additionally, the growing number of states and nations legalizing cannabis has given a substantial tailwind for cannabis stocks. However, like with any investment, traders must exercise caution and use risk management measures. Whether you’re an experienced investor or new to cannabis stocks, this article will showcase some of the top marijuana stocks to watch this week and provide vital tips on how to trade safely and avoid risks in this exciting but volatile market.
Best Marijuana Stocks to Keep an Eye on in September
- Ascend Wellness Holdings, Inc. (OTC: AAWH)
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Cansortium Inc. (OTC: CNTMF)
Ascend Wellness Holdings, Inc.
AWH facilities exist in Massachusetts, New Jersey, Ohio, Illinois, Michigan, and Michigan. AWH’s major commercial activities are the ownership and operation of facilities that produce well-known strains and a diversified product line. Ozone is the brand name the corporation manufactures typically and distributes its products. The shop sells cannabis-related items like as candy, concentrates, pre-rolls, flowers, and vape pens. AWH operates 17 retail outlets and sells products to licensed marijuana businesses. As agreed upon by Ascend Wellness and MedMen Enterprises Inc., the purchase price of MedMen NY Inc. will rise.
Q2 2023 Financial Highlights
- Gross revenue increased 28.4% year-over-year and 7.0% quarter-over-quarter to $151.0 million.
- Net revenue, which excludes intercompany sales of wholesale products, increased 26.1% year-over-year and 7.7% quarter-over-quarter to $123.0 million.
- Retail revenue increased 18.9% year-over-year and 8.6% quarter-over-quarter to $89.9 million.
- Gross wholesale revenue increased 45.3% year-over-year and 4.7% quarter-over-quarter to $61.2 million. Wholesale revenue, net of intercompany sales, increased 51.0% year-over-year and 5.4% quarter-over-quarter to $33.1 million.
- Net income of $0.8 million during the quarter represented an improvement compared to a net loss of $21.2 million in Q2 2022 and $18.5 million in Q1 2023.
- Adjusted EBITDA1 was $21.3 million, representing a 17.3% margin. Adjusted EBITDA increased 2%, and margins declined 409 basis points year-over-year. Margins declined 308 basis points quarter-over-quarter.
- As of June 30, 2023, cash and cash equivalents were $68.0 million, and net debt2 was $241.8 million.
Generated $25.4 million of cash flows from operations, representing the second quarter in a row of positive operating cash flow. This included a benefit from the recognition of a $22.8 million employee retention tax credit (“ERTC”), of which $17.5 million was collected and then returned to a lender as debt repayment of an advance previously received. Excluding this inflow, cash flows from operations would have been nearly $8 million.
AAWH Stock Performance
AAWH stock closed on September 15th at $1.18, up 97.32% in the past month of trading. The stock has a price range of $0.464-$2.43, up 2.61% year to date. According to analysts at CNN Business, AAWH stock has a 12-month median price forecast of $3.93 per share. In this case, it would represent an increase of 232.63% from its last trading price of $1.18.
Trulieve Cannabis Corp.
Trulieve Cannabis Inc., which operates in eleven states, owns most of the Florida market. With 186 retail sites, the business dominates the cannabis sector in America. The processing and expansion space of the facility totals 4 million square feet. The most recent Georgia manufacturing license has helped Trulieve’s position in the Southeast cannabis industry. The firm opened its first dispensary in Massachusetts, laying the groundwork for future growth. To extend its manufacturing capacity in the southwest, the company purchased a 64,00 square foot growing facility near Phoenix in early February. In April, the company acquired Greenhouse Wellness West Virginia Dispensaries LLC, expanding its geographic footprint into West Virginia.
Q2 2023 Financial and Operational Highlights
- Revenue of $282 million, with 96% of revenue from retail sales. Excluding deferred revenue, retail revenue increased by $3 million, sequentially driven by increased traffic and volume partly offset by price compression.
- Achieved GAAP gross margin of 50%, with gross profit of $142 million. Reclassification of idle capacity expense to COGS resulted in $2 million of tax savings.
- SG&A expenses lowered by $4 million sequentially to $96 million.
- Reported net loss of $404 million. Adjusted net loss of $15 million* excludes non-recurring charges, asset and goodwill impairments, disposals and discontinued operations. Goodwill impairment was triggered by the recent stock price performance and is not connected to management’s forecasts.
- Achieved adjusted EBITDA of $79 million*, or 28% of revenue.
- Generated cash flow from operations excluding tax payments of $98 million year to date.
- Inventory reduction initiatives drive $24 million in cash generation year to date.
- Cash at quarter end of $160 million.
- Realized record traffic, customers served, and units sold on 4/20 holiday, up 10%, 11%, and 9%, respectively, year over year.
- Sold 11.6 million units of branded products through branded retail, up 9% sequentially.
TCNNF Stock Performance
TCNNF stock closed on September 15th at $7.45, up 95.03% in the last month of trading. The stock has a 52-week price range of $3.42-$16.11 and is down 1.59% year to date. According to analysts at CNN Business, TCNNF stock has a 12-month average price target of $10.42 per share. In this case, this represents an upside of 39.89% from its last trading price of 7.45.
Cansortium Inc., a cannabis company based in Florida, is committed to producing high-quality cannabis. Currently, the corporation has offices in Texas, Michigan, and Pennsylvania. Cansortium has expanded into Florida and Pennsylvania due to a $90 million loan and equity agreement signed last year. The company claims to have a dispensary in Fruitland Park, Florida. With 30 locations, Cansortium is one of Florida’s largest dispensary networks. Fluent’s Fluent brand offers various high-end consumables, such as full-spectrum extracts, cartridges, and lotions.
Q2 2023 Financial Highlights (vs. Q2 2022)
- Revenue increased 9% to $24.4 million compared to $22.4 million.
- Florida revenue increased 11% to $20.1 million compared to $18.2 million.
- Adjusted gross profit1 increased 5% to $15.8 million or 64.6% of revenue, compared to $15.0 million or 67.0% of revenue.
- Adjusted EBITDA was $8.6 million compared to $10.2 million, with the decrease primarily driven by increased SG&A related to new store openings that are still ramping.
- Cash flow from operations for the three months ended June 30, 2023 was $4.8 million compared to $5.8 million in the prior year.
- At June 30, 2023 the Company had approximately $8.8 million of cash and cash equivalents and $59.3 million of total debt, with approximately 298 million shares outstanding.
CNTMF Stock Performance
On September 15th, CNTMF stock finished at $0.12, up 57.89% in the past month of trading. The stock is now trading in a 52-week price range of $0.058-$0.23 and is up 7.33 percent year to date.
September’s Bud Breakout: Top Marijuana Stocks for Investors
As we conclude our exploration of the top marijuana stocks to watch this September, it’s evident that the cannabis industry is amid an exciting resurgence. In general, the market is primed for potential growth with shifting regulations and evolving public perceptions. However, investors must remain cautious and diligent, utilizing proper risk management strategies to protect their portfolios in the face of the inherent volatility in the cannabis sector.
In this ever-changing landscape, staying informed and adaptable is paramount. By diversifying your portfolio, conducting thorough research, and keeping a close eye on market trends, you can make informed decisions and capitalize on the opportunities the cannabis market offers. As September unfolds, remember that investing in marijuana stocks carries unique risks, so always trade responsibly and consider seeking advice from financial professionals to ensure your investment journey remains on a steady climb.