Cannabis Industry Insights: September 2023’s Top Stocks to Watch
The cannabis industry, once shrouded in stigma, has emerged as a thriving sector with remarkable growth potential. As September 2023 approaches, investors focus on marijuana stocks, keenly anticipating how these companies will fare in the next months. The cannabis sector is primed for enormous growth, thanks to altering legislation, shifting public opinion, and a growing market.
Despite the hype, statistical estimates indicate a bright future for marijuana companies. Legal cannabis sales are expected to reach new highs by 2023, with significant year-over-year growth. However, navigating this ever-changing terrain necessitates an organized strategy. Understanding technical indicators is critical for investors trying to capitalize on short-term gains. Combining these techniques with strong risk management may be the key to reaping the benefits while avoiding the drawbacks.
Let’s look at the top marijuana stocks to watch before September 2023. We’ll evaluate the current health of the cannabis market, shed light on projected growth prospects, and untangle the complexities of short-term trading. In addition, we will emphasize the need to use technical indicators wisely and implement a conservative risk management plan to navigate this exciting yet volatile market properly.
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Navigating the Green Market: Top Marijuana Stocks for September 2023
- Glass House Brands Inc. (OTC: GLASF)
- TerrAscend Corp. (OTC: TSNDF)
- SLANG Worldwide Inc. (OTC: SLGWF)
Glass House Brands Inc.
Glass House Brands Inc., a vertically integrated hemp and cannabis company, as serves one of the fastest-growing industries in the country. The company concentrates on the California market, where it creates distinctive eco-friendly brands to fulfill the needs of consumers in several industries. Some of the company’s well-known goods include Mama Sue Wellness, Glass House Farms, and Forbidden Flowers. The company plans to invest in a 5.5 million square foot greenhouse in Southern California in September 2021. Mark Vendetti is the new company’s chief financial officer. PLUS, a well-known California edibles brand, was purchased for $25.6 million in December.
Second Quarter 2023 Highlights
(Unless otherwise stated, all results and dollar references are in U.S. dollars.)
- Net Sales of $44.7 million increased 171% from $16.5 million in Q2 2022 and up 54% sequentially from $29.0 million in Q1 2023;
- Gross Profit was $24.4 million compared to $0.3 million in Q2 2022 and $12.0 million in Q1 2023;
- Gross Margin was 55%, compared to 2% in Q2 2022 and 41% in Q1 2023;
- Adjusted EBITDA1 was $9.5 million, compared to $(9.8) million in Q2 2022 and $(0.1) million in Q1 2023;
- Cost per Equivalent Dry Pound of Production3 was $139, a decrease of 12% compared to the same period last year and down 29% sequentially versus Q1 2023;
- Equivalent Dry Pound Production2 was 103,336 pounds, up 311% year-over-year and up 115% sequentially;
- Cash balance was $22.7 million at quarter-end, up 39% from Q1 2023 quarter-end.
Words From The CEO
“The second quarter of 2023 was the best in our history. We achieved record levels of operating cash flow, exceeded Q2 guidance across several operating metrics, and marked our first quarter of positive adjusted EBITDA1.”
“In Q2 2023, we saw our biomass revenues and pounds sold more than quadruple versus the previous year. Revenues from our retail dispensaries doubled to $10 million year-over-year due to growth from acquisitions. Consolidated gross margin surpassed 50% and cultivation cost per pound3 fell by 12% versus last year. Finally, Adjusted EBITDA1 flipped to a positive $9.5 million compared to negative $9.8 million a year ago.”
Kyle Kazan, Co-Founder, Chairman, and CEO of Glass House.
GLASF Stock Performance
GLASF stock ended at $3.74 on August 25th, up 25.50% in the last month of trading. The stock has been trading in a 52-week range of $1.78-$4.51. GLASF stock is up 95.81% year to date.
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TerrAscend Corp.
TerrAscend grows and distributes marijuana throughout the United States and Canada for medical and recreational purposes. The company is a large cannabis grower in the United States, with Pennsylvania, New Jersey, and California facilities. The company’s principal goals are to make and market artisan cannabis goods and hemp and cannabis-infused products. TerrAscend has developed several items under the Kind Tree brand in Maryland. The Kind Tree brand will expand its existing product line, which is made in Maryland from 15 different flower varietals, to include vapes and half-gram pre-rolls.
Second Quarter 2023 Financial Highlights
- Net Revenue was $72.1 million, an increase of 3.9% sequentially and 12.7% year-over-year.
- Gross Profit Margin was 50.2%, compared to 48.8% in Q1 2023 and 37.5% in Q2 2022.
- GAAP Net loss from continuing operations was $12.9 million, compared to $19.2 million in Q1 2023 and net income of $16.9 million in Q2 2022.
- EBITDA from continuing operations1 was $6.5 million, compared to $6.1 million in Q1 2023 and $38.4 million in Q2 2022.
- Adjusted EBITDA from continuing operations1 was $12.8 million, compared to $12.2 million in Q1 2023 and $8.8 million in Q2 2022.
- Adjusted EBITDA Margin from continuing operations1 was 17.8%, compared to 17.6% in Q1 2023 and 13.8% in Q2 2022.
- Net cash provided by (used in) operating activities – continuing operations was $1.8 million compared to $10.5 million in Q1 2023 and ($14.9) million in Q2 2022.
- Cash and Cash Equivalents, including restricted cash, totaled $34.5 million as of June 30, 2023, of which $2.5 million was long term restricted, as compared to $33.5 million as of March 31, 2023.
Outlook for 2023
The Company is reiterating its outlook for Net Revenue and Adjusted EBITDA from continuing operations1 for 2023 to be at least $305 million and at least $58 million, respectively, representing year-over-year growth of 23% in Net Revenue and 49% in Adjusted EBITDA from continuing operations1.
TSNDF Stock Performance
TSNDF stock closed at $1.61 on August 25th, up 14.18% in the past month of trading. The stock has a 52-week price range of $1.00-$2.50 and is up 42.48% year to date. According to analysts at CNN Business, TSNDF stock has a 12-month average price target of $2.18 per share. In this case, this would represent an upside of 35.39% from its last trading price of $1.61.
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SLANG Worldwide Inc.
SLANG Worldwide Inc. is the market leader in branded cannabis consumer packaged goods, with a varied portfolio of five distinct brands and products distributed throughout the United States. The company focuses on acquiring and expanding market-proven regional brands in 13 legal cannabis jurisdictions around the country and building distinctive new brands to capitalize on global market potential and meet changing consumer preferences. The Company has more than a decade of operating expertise in the new and heavily regulated cannabis sector, and its partners benefit from that expertise by having access to the SLANG playbook for effective operations, sales, and marketing.
Second Quarter 2023 Financial Summary:
- In Q2 2023, cannabis revenue was $8.44M, down from 2022 due to reduced Distribution and Emerging Market sales. However, Core Market sales grew by $1.05M, led by Vermont. H1 2023 saw revenue rise 5.6% to $19.3M. Q2 2023’s gross profit reached $4.4M (52% gross margin), slightly lower than Q2 2022’s $4.5M (43%).
- Adjusted gross profit1 was $4.5M (54% margin), up 6.3% YoY from Q2 2022’s $4.3M (43% margin). Q2 2023’s EBITDA1 was $(1.2)M, down from Q2 2022’s $(1.1)M, due to lower gross profits offset by reduced expenses. Adjusted EBITDA1 was $(0.76)M in Q2 2023, a decrease from Q2 2022’s $(0.70)M, due to higher operating expenses balanced by increased adjusted gross profit.
- By June 30, 2023, the Company had $10.07M in cash and restricted cash, down from $11.67M on March 31, 2023. An additional $1.63M in ERTC was received post-quarter end. As of August 15, 2023, SLANG had $11.23M in cash and restricted cash, a decrease from $11.92M on December 31, 2022.
SLGWF Stock Performance
SLGWF stock closed at $0.0295 on August 25th, up 13.46% in the last month of trading. In this case, the stock has a 52-week price range of $0.014-$0.0923 and is up 13.90% year to date.
Strategic Investments: Ranking Marijuana Stocks Before September 2023
As we approach September 2023, the cannabis sector provides investors an enticing mix of opportunity and volatility. Marijuana stocks covered here have prospects for significant gains due to evolving legislation and shifting public opinions. However, it is critical to realize that, while the benefits are appealing, the hazards are also so. The astute investor navigates this terrain by making informed decisions, relying on technical indicators, and employing intelligent risk management.
Success in the volatile world of marijuana stocks depends on a careful combination of insight and caution. Investors can position themselves to capitalize on the industry’s potential by watching the top cannabis stocks listed above. Remember, September’s market trend is full of twists and turns. So, approach these investments with a well-rounded understanding and careful awareness of the developing dynamics at work.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
