March And Cannabis Market Value
As the end of March nears the best marijuana stocks to buy have seen significant losses in market value for the month. After reaching new highs in February a decline in market value for the cannabis sector has persisted for 6 weeks. Although most top marijuana stocks are still currently up in the market for 2021 this month has definitely had a negative impact on those gains. As the cannabis industry continues to grow across the U.S. most top cannabis companies are reporting record 2020 revenue and strong 2021 revenue guidance. Showing substantial growth for the cannabis market for the next few years.
In addition, new companies are being brought public by way of special purpose acquisition companies. Actually, some new additions to the market have already made a tremendous impact on the cannabis industry for years. Another area of the cannabis sector that has delivered strong gains for investors earlier in the year is marijuana penny stocks. In some instances, marijuana stocks trading under $5 have shown the most upward momentum in 2021.
As the cannabis sector continues to drop in market value this could be an opportunity for new investors to start positions in the cannabis market. In general finding, some of these cannabis companies before they gain in the market could increase value to your investment.
Learning About Marijuana Stocks
For new investors are a few things you should learn about the cannabis industry before starting a position. For one marijuana stocks are known to be some of the more volatile stocks available on the market today. Currently, many day traders are swing traders drive in this volatility using the pricing fluctuations to make short-term gains in the market. For long-term investing in this market, volatility could make it more difficult to hold. But whatever your trading style there could be potential gains in the cannabis market for 2021.
One thing any investors should always do before starting any position in a company is doing their own due diligence. The reality is this will help you make better investment decisions and choose companies with stronger financials to invest in. For the purpose of finding top marijuana stocks in different areas of the market, we can take an in-depth look at a few companies. With this in mind let’s take a look at 2 cannabis stocks to watch heading into April 2021.
Marijuana Stocks To Watch:
Silver Spike Acquisition Corp. (NASDAQ: SSPK)
Aleafia Health Inc. (OTC: ALEAF)
Silver Spike Acquisition Corp. (Weedmaps)
Better known as Weedmaps Silver Spike Acquisition Corp. is the special acquisition company that announced in December it would bringing WM Holdings Company public. Functionally, Weedmaps is an online listing marketplace for cannabis consumers and cannabis companies. Currently, WMH is estimated to have $160 million in revenue for 2020. Before going public, Weedmaps saw an annual growth rate of 40% during the last five years. At the present time, WMH is valued at $1.5 billion and has lost value in March in the market. As far as an online platform Weedmaps has become essential with connecting cannabis consumers to retail locations.
In the U.S. growth in the cannabis market could signify growth for WM Holdings in the future. With more people turning to cannabis for recreational use more consumers will be using the company’s services. At the present time, Weedmaps has about 10 million monthly active users and over 18,000 business listings in the U.S. In fact, Weedmap’s clientele includes over 55% of holders of retail licenses in all markets.
SSPK stock is 46.52% year to date with a high of $29.50 in February. Currently trading at $18.61 on March 30th the stock is up 3.10%. According to analysts Stock Invest SSPK stock is expected to rise 15.13% during the next 3 months. As the cannabis market continues to grow in 2021 SSPK stock could have future momentum.
Aleafia Health Inc.
Aleafia Health Inc. is a Canadian cannabis company providing cannabis wellness services and products in Canada and international markets. At the current time, the company operates medical dispensaries, education centers, and production facilities for the production and sale of cannabis. Currently, Aleafia owns four licensed cannabis production facilities. In addition, the company produces a diverse portfolio of high-margin derivative products.
On March 25th Aleafia health reported its 2020 end of the year results and fourth-quarter financials. Specifically, the company had a 233% increase in quarter-over-quarter cannabis net revenue. Additionally, the company saw a 501% increase in quarter-over-quarter adult-use net revenue. Another significant factor for future growth Aleafia health expanded its product portfolio with 30 new SKUs which launched in October. Although the company seems to be showing growth potential it still has a net loss for Q4 and full-year 2020 of $217.3 million and $247.2 million respectively. Actually, this is a substantial increase when comparing to the losses of $9.8 million and $39.6 million in the same periods in 2019.
ALEAF stock is up 29.21% year to date with a high of $1.07 back in February. Currently trading on March 30th at $0.47 the stock is down 2.29% at the moment. According to one analyst at Tip Ranks ALEAF stock has a 12-month price target of $0.64 per share. In essence, this would be a 36.17% gain from current levels. With this in mind, ALEAF stock could be a marijuana penny stock to watch in April.
[Read More] Best Marijuana ETFs For April 2021
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