Leading Marijuana Stocks in the US for April 2024
In recent years, the US cannabis industry and top marijuana stocks have seen explosive growth, capturing the interest of investors nationwide. April brings a fresh look at top US marijuana stocks worth watching. These companies are at the forefront of a rapidly expanding market. With states increasingly legalizing cannabis, the sector’s potential seems boundless. This growth isn’t just about the domestic market. It extends globally as more countries explore cannabis decriminalization and medical use. Such trends underscore the industry’s robust future growth prospects. For savvy investors, keeping an eye on these developments is key.
Understanding these stocks requires more than just a glance at their market performance. Technical analysis becomes a vital tool in this regard. It helps identify trends and potential entry or exit points. However, like all investments, cannabis stocks come with their risks. Proper risk management is crucial. This means diversifying investments and setting stop-loss orders. Such strategies mitigate potential losses, making your investment journey less bumpy. Remember, while the cannabis industry offers exciting opportunities, caution and informed decision-making should guide investment moves.
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Top Marijuana Stocks in the US for April 2024
- Planet 13 Holdings Inc. (OTC: PLNH)
- Glass House Brands Inc. (OTC: GLASF)
Planet 13 Holdings Inc.
The corporate headquarters of well-known cannabis company Planet 13 Holdings Inc. are situated in Las Vegas, Nevada. The company behind “Planet 13 Superstore,” one of the largest cannabis stores in the world, is Planet 13, which is well-known for its innovative and immersive approach to cannabis purchasing. The company’s primary goal is to supply a variety of cannabis products, such as edibles, extracts, flower, and more. It caters to both medical and leisure clients.
At the moment, Planet
13’s main client is in Nevada; its corporate office is located in Las Vegas. Our flagship store’s unique and immersive shopping idea has made it a well-known cannabis destination that draws visitors worldwide. A well-known player in the cannabis retail market, Planet 13 places a strong emphasis on offering customers a sophisticated and enjoyable purchasing experience.
The company’s commitment to providing a broad selection of high-quality items and an exceptional customer experience has made it a pioneer in the cannabis retail sector. Using an innovative retail approach, Planet 13 has solidified its position as a trailblazer in the cannabis sector and set the standard for other dispensaries looking to enhance the customer experience.
Fourth Quarter Highlights
In the fourth quarter of 2023, Planet 13 Holdings Inc. experienced a slight downturn, with revenues decreasing to $23.0 million from $24.8 million in the preceding year, marking a 7.5% decline. This drop was primarily due to reduced sales at the SuperStore and a fall in wholesale revenue in Nevada. Despite this, there was a notable improvement in gross profit, which rose to $11.0 million, or 47.8%, up from $10.7 million, or 43.0%. Interestingly, this increase in gross margin was propelled by a reduction in product discounting at retail. Moreover, the company witnessed a significant decrease in operating expenses, down by 60.5% to $18.1 million. Consequently, the net loss improved to $14.3 million, substantially recovering from a $49.2 million net loss. Additionally, the company achieved an adjusted EBITDA of $1.3 million, bouncing back from a previous $0.6 million loss.
Full Year 2023 Highlights
For 2023, Planet 13’s revenues saw a modest 5.8% decrease to $98.5 million from $104.6 million. Despite this, the year’s gross profit marginally declined to $44.8 million or 45.5%, showcasing the company’s ability to nearly maintain its gross margin through increased vertical integration and effective cost control, even amidst price compression. Total expenses rose by 9.5% to $105.9 million, influenced by a one-time, non-cash $46.8 million impairment charge. Excluding this impairment, the expenses tallied up to $59.1 million. As a result, the net loss expanded to $73.6 million, primarily driven by the impairment charge.
On a brighter note, the company posted a slight improvement in adjusted EBITDA to $1.4 million, compared to a previous $7.5 million loss. The balance sheet reflected a decline in cash to $17.3 million and total assets to $151.7 million, with liabilities slightly increasing to $44.1 million. Over the year, Planet 13 announced a series of strategic moves, including launching new operations and expanding its leadership team, signaling a clear path toward ambitious growth.
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Glass House Brands Inc.
Glass House Brands is a significant player in the US cannabis market that focuses on the manufacture, distribution, and cultivation of high-quality cannabis. One well-known vertically integrated company that prioritizes eco-friendly products is Glass House Brands. Its main office is located in California. They are well-known in the well-established cannabis sector in California for their size and growth potential. Retailer Glass House Brands has expanded strategically by opening many sites to strengthen its position in the state.
In response to California’s increasing demand for cannabis for both recreational and therapeutic purposes, a company by the name of Glass House Brands distributes premium cannabis products. They stand out from the competition because of their dedication to sustainable and ecologically friendly farming practices. Investors are drawn to the rapidly expanding cannabis business, in which Glass House Brands is recognized as a major player. California continues to be a leader in the use and legalization of cannabis.
Fourth Quarter 2023 Highlights
In Q4 2023, the company proudly reported net revenues of $40.4 million, achieving a notable 35% increase from Q4 2022, yet experiencing a 16% decrease from Q3 2023. Impressively, this performance exceeded the anticipated guidance range of $38 million to $40 million for the quarter. Specifically, wholesale biomass revenue contributed significantly to this success, witnessing a 71% increase from the same quarter in the previous year, reaching $26.8 million. Despite this, there was a 21% sequential decrease from Q3 2023.
Remarkably, this growth was achieved with Greenhouse 6 fully operational, marking the second consecutive quarter of year-over-year comparisons without expanding capacity. However, the proportion of flower in the volume mix for wholesale biomass sales saw an eight percentage point decrease compared to both the previous quarter and Q4 of the previous year. If the flower mix had remained consistent with Q3, the revenue could have been an impressive $4.0 million higher, boasting an average selling price of $313 per pound, positioning it as the second highest following Q3 2023, and elevating the wholesale biomass gross margin to an impressive 55%.
Revenue Highlights
Meanwhile, retail revenue in Q4 2023 dropped to $9.6 million from $10.1 million in the preceding quarter and $10.6 million in Q4 2022, reflecting the increasingly competitive market and heightened price discounting levels. On another front, Wholesale Consumer Packaged Goods (CPG) revenues slightly dipped to $4.1 million from $4.3 million last quarter. Despite the fiercely competitive market, the company steadfastly maintained its policy of selling exclusively to dispensaries that are current on payments.
This prudent approach helped avoid significant accounts receivable payment defaults, even amidst some widely publicized store closures. Consolidated gross profit stood at $18.0 million or 45% of net revenues, marking a descent from the record high of $26.0 million or 54% in Q3 2023. This decline was mainly attributed to a lower mix of flower in wholesale biomass production and sales. Moreover, the quarter witnessed a decrease in gross margin in the retail business and a transition into a loss at the gross margin level for CPG, primarily due to $1.9 million in inventory write-offs, more than half of which was associated with the discontinuation of the FIELD and Forbidden Flowers brands.
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Top US Cannabis Stocks to Watch
As we wrap up our exploration of top US marijuana stocks for April, it’s clear the cannabis industry is thriving. With each state that legalizes, the market widens. This brings more opportunities for investors. The future looks promising. Innovations in medical and recreational cannabis continue to drive growth. Investors should keep a close eye on these developments. They signal the sector’s long-term potential. In this dynamic landscape, being well-informed is crucial. It ensures you’re ready to act on opportunities as they arise.
Navigating the cannabis stock market demands savvy technical analysis and risk management. This approach helps investors spot trends and make timely decisions. Remember, diversification is key. It protects your portfolio from volatility. Setting stop-loss orders can also safeguard your investments. These strategies help balance the risks and rewards of investing in cannabis stocks. As the industry grows, so does the potential for returns. But, as with any investment, caution and research are your best allies. Here’s to making informed choices in the burgeoning world of cannabis investing.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
