Key U.S. Cannabis Stocks for Investors in 2024
As we step into the first week of 2024, the U.S. marijuana industry is in the spotlight. This sector, comprising various cannabis companies and top marijuana stocks, is gaining momentum. These firms range from growers and distributors to retailers. Their expansion reflects increasing legalization and consumer acceptance.
Yesterday, the cannabis sector showed an upward trend. This boost can be linked to positive regulatory developments. Also, strong consumer demand played a role. These factors are vital for investors monitoring this industry.
In trading cannabis stocks, technical analysis is crucial. It involves studying stock price patterns and trends. Investors use this method to gauge future movements. The volatile nature of the cannabis market makes this approach particularly relevant. It helps in making strategic investment decisions in this dynamic sector. Let’s look at 3 top marijuana stocks to add to your watchlist for 2024.
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- Glass House Brands Inc. (OTC: GLASF)
- Planet 13 Holdings Inc. (OTC: PLNH)
- TerrAscend Corp. (OTC: TSNDF)
Glass House Brands Inc.
One of the biggest companies in the US cannabis industry, Glass House Brands, is focused on producing, distributing, and growing high-quality cannabis. Glass House Brands, which is headquartered in California, is known for being a vertically integrated business that values eco-friendly products. In the cannabis industry, which is well-known for its size and growing potential, they enjoy a good reputation in California. Retail company Glass House Brands has established multiple new locations, strengthening its presence in the state, as a result of their strategic growth.
A company called Glass House Brands provides high-quality cannabis products in response to California’s growing demand for the drug for both recreational and medicinal uses. Their commitment to environmentally friendly and sustainable farming methods makes them stand out in the industry. Investors and consumers alike are drawn to the burgeoning cannabis business, where Glass House Brands is well recognized as a significant participant. In terms of cannabis usage and legalization, California remains a pioneer.
Third Quarter 2023 Highlights
Glass House Brands reported excellent financial results and noteworthy achievements for the third quarter of 2023. Notably, their cash buffers increased to $37.9 million from $22.7 million in the previous quarter thanks to an infusion of $12.8 million from a Series D Preferred Equity Fund Raise. The company’s operating cash flow jumped significantly, from $8.3 million in the second quarter of 2023 to a record $9.1 million. Adjusted EBITDA showed notable improvement as well, rising from $9.5 million to $10.7 million in the previous quarter.
The most significant figure in their Q3 statistics was revenue, which hit a record $48.2 million, up 8% sequentially and an astounding 71% year over year. Despite this, the gross margin went from 55% in the second quarter of 2023 to 54% in the same quarter of the previous year; nonetheless, it was still significantly higher than 31%. Furthermore, the company reported a startling 142% increase in Q3 Biomass sales compared to the previous year, accompanied by a 36% increase in output.
With an eye toward the future, Glass House Brands released estimates for Q4 2023, estimating revenues of $38 million to $40 million, a 21% increase over Q3 2022. However, because of unfavorable weather that affects flower output, the guideline predicts a 19% consecutive fall from the mid-point.
GLASF Stock Performance
GLASF stock ended at $4.97 on January 3rd, up 5.52% in the last month of trading. Currently, the stock has been trading in a 52-week range of $2.00-$5.11. GLASF stock is up 5.07% year to date.
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Planet 13 Holdings Inc.
Planet 13 Holdings Inc., situated in Las Vegas, Nevada, is a well-known cannabis company. One of the largest cannabis stores in the world, “Planet 13 Superstore,” is operated by Planet 13, which is renowned for its innovative and immersive approach to cannabis buying. The company caters to both medical and recreational clients and specializes in offering a wide range of cannabis goods, such as edibles, extracts, flower, and more.
Currently, Planet 13 operates mostly in Nevada, with its main dispensary located in Las Vegas. Due to its unique and immersive retail concept, our flagship site has become a well-known cannabis attraction that draws visitors from all over the world. Because it places a strong focus on creating a sophisticated and enjoyable shopping experience, Planet 13 is a significant player in the cannabis retail sector.
The company’s commitment to providing a diverse and high-quality product selection, coupled with its exceptional customer experience, has contributed to its reputation as a leader in the cannabis retail sector. Planet 13’s innovative approach to cannabis retail has not only solidified its presence in Nevada but has also positioned it as a model for future cannabis dispensaries looking to elevate the customer experience.
Financial Highlights – Q3 – 2023
In its Q3 2023 financial report, Planet 13 Holdings Inc. revealed a mixed performance in a number of important categories. With $24.8 million in revenue for the quarter, less than 3.3% of what was earned at the same time last year. Reduced sales at the SuperStore and a minor reduction in Nevada’s wholesale revenue were blamed for the downturn. Notwithstanding this, gross profit rose to $11.1 million, mainly as a result of lower product discounting at the retail level, with a gross margin of 44.7%, up from 41.2%.
Nonetheless, the business recorded a notable rise in overall costs, amounting to $55.1 million, mainly due to a $39.6 million one-time non-cash impairment charge. The entire cost, without the impairment, came to $15.4 million. As a result, Planet 13 recorded a $46.0 million net loss for the quarter, as opposed to a $6.3 million loss in the same period the year prior. This rise in net loss was mostly due to the impairment charge. Additionally, adjusted EBITDA decreased from $0.5 million to $0.2 million, with increased gross margin helping to offset a lower adjusted EBITDA margin brought on by operating leverage.
Turning to the balance sheet, Planet 13 reported cash reserves of $36.8 million, down from $52.4 million at the end of 2022. Total assets decreased from $233.6 million to $178.4 million, while total liabilities remained relatively stable at $41.5 million.
In recent developments, Planet 13 announced its intention to acquire VidaCann, a significant move to expand its presence. The change in domicile to Nevada and a change in the OTC trading symbol were completed in September 2023. Furthermore, the company unveiled plans for the Dazed! Consumption Lounge on November 1, 2023, indicating its commitment to enhancing customer experiences.
PLNH Stock Performance
PLNH stock closed on January 3rd at $0.6787, down 10.69% in the last month of trading. Currently, the stock has a 52-week price range of $0.451-$1.20 and is up 6.03% year to date.
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TerrAscend Corp.
TerrAscend is a well-known cannabis company in North America with operations in several states, mostly catering to the medical and recreational cannabis markets. To satisfy the varied needs of its clients, they are offering premium cannabis goods, such as edibles, concentrates, and flower. TerrAscend’s retail presence is made up of a network of strategically located dispensaries located in several states, with Pennsylvania, New Jersey, and California having the highest concentration.
The brand has made a strong reputation for itself in the cannabis industry thanks to its dedication to quality and innovation. TerrAscend’s vertically integrated business approach allows them to have complete control over the supply chain, from cultivation to distribution. By using this tactic, businesses can guarantee the quality and dependability of their products and set themselves up for growth in regions where cannabis laws are still changing. A prominent participant in the rapidly growing cannabis industry, TerrAscend draws customers for both medical and recreational uses. It is well-known in major states and focuses on providing a wide variety of cannabis products.
Third Quarter 2023 Financial Highlights
- Net Revenue was $89.2 million, compared to $72.1 million in Q2 2023 and $66.2 million in Q3 2022, representing an increase of 23.7% sequentially and 34.7% year-over-year.
- Gross Profit Margin was 53.6%, compared to 50.2% in Q2 2023 and 47.0% in Q3 2022.
- GAAP Net loss from continuing operations was $8.4 million, compared to $12.9 million in Q2 2023 and $300.6 million in Q3 2022.
- EBITDA from continuing operations was $20.7 million, compared to $6.5 million in Q2 2023 and ($317.9) million in Q3 2022.
- Adjusted EBITDA from continuing operations was $24.2 million, compared to $12.8 million in Q2 2023 and $12.8 million in Q3 2022.
- Adjusted EBITDA Margin from continuing operations was 27.1%, compared to 17.8% in Q2 2023 and 19.3% in Q3 2022.
- Net cash provided by operating activities – continuing operations was $9.4 million compared to $1.8 million in Q2 2023 and $2.3 million in Q3 2022.
- Free cash flow from continuing operations was $7.7 million compared to ($0.2) million in Q2 2023 and ($9.5) million in Q3 2022.
TSNDF Stock Performance
TSNDF stock closed at $1.78 on January 3rd, up 10.56% in the past month of trading. Currently, the stock has a 52-week price range of $1.15-$2.341 and is up 9.20% year to date.
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Cannabis Market Movers: U.S. Stocks to Watch in 2024
In conclusion, as 2024 progresses, the marijuana sector presents intriguing possibilities for investors. The increasing legalization and evolving market dynamics suggest potential growth. However, it’s crucial to approach this with a balanced perspective. Diversification within the sector can mitigate risks associated with specific companies or sub-sectors.
When trading in top marijuana stocks, proper risk management is essential. Investors should assess their risk tolerance and set clear investment goals. It’s advisable to use stop-loss orders and position sizing. These tools help manage potential losses and protect capital. Staying informed about regulatory changes and market trends is also vital.
Finally, the marijuana industry is still in a developmental stage. This brings both challenges and opportunities. Investors should stay updated on legal and market shifts. Keeping an eye on emerging players and technological advancements is key. With careful analysis and risk management, the marijuana sector can be a valuable addition to diverse investment portfolios.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
