Undervalued Marijuana Penny Stocks to Watch in June 2023
The marijuana industry has seen modest growth as the market continues to gain traction. Many marijuana penny stocks have seen significant percentage gains. In May, bipartisan US House and Senate senators revived the SAFE Banking Act, revitalizing the cannabis sector. Cannabis penny stocks are one sector where new investors may see short-term gains. A penny stock is one that is worth less than $5 per share. Despite the industry’s well-known high level of market volatility, short-term investors might expect to make significant profits.
Marijuana penny stock trading can be a fun and possibly successful business, but it is not without risks and obstacles. According to estimates, the marijuana sector will continue to grow in the future years, as it has in recent years. Many individuals feel that marijuana has numerous therapeutic and recreational applications and has the potential to be a highly wealthy industry. Through 2030, the marijuana market will rise at a compound annual growth rate of at least 25%.
As a result, many investors are looking for possibilities in this sector. As more states and nations legalize or decriminalize cannabis, the commercial potential for new and established businesses expands. The cannabis market in the United States will expand tremendously. The American cannabis market will grow dramatically. Using the sector’s resurgence, investors can profit from the market’s momentum. The following are the top 3 marijuana stocks to watch in June.
Top Marijuana Penny Stocks to Watch in June 2023
- Acreage Holdings, Inc. (OTC: ACRHF)
- Red White & Bloom Brands Inc. (OTC: RWBYF)
- TerrAscend Corp. (OTC: TRSSF)
Acreage Holdings, Inc.
Acreage Holdings, Inc. is a cannabis grower and retailer with locations around the United States. If the US ban is repealed, Acreage’s relationship with Canopy Growth Corporation (NASDAQ: CGC) could lead to a purchase. Because of their huge geographic areas, the economies of New York and New Jersey are expected to rise significantly over the next several years. Acreage intends to complete the construction of its development center in New Jersey, the state with the most licensed stores.
Total revenue from acreage was $56.0 million in the first quarter of 2023, compared to $56.9 million in the first quarter of 2022 (“Q1 2022”) and $57.5 million in the fourth quarter of 2022. Total gross profit for the first quarter of 2023 was $26.6 million, down from $29.5 million in the same period last year. Total gross margin was 48% in Q1 2023, down from 52% in Q1 2022. Cost increases due to inflation, as well as price compression, had an impact on margins during the quarter. Adjusted EBITDA* was $10.6 million in the first quarter of 2023, up from $8.6 million in the first quarter of 2022 and $7.0 million in the fourth quarter of 2022. Acreage’s net loss for the first quarter of 2023 was $(14.6) million, compared to $(12.7) million in the first quarter of 2022.
ACRHF Stock Performance
ACRHF stock closed at $0.2051 on June 13th, down 6.77% in the last five days of trading. The stock has a 52-week price range of $0.1910-$1.25 and is down 59.78% year to date.
Red White & Bloom Brands Inc.
Red White & Bloom Brands Inc., which operates in multiple states, intends to be one of the leading cannabis companies in the country. With retail sites in Michigan, Illinois, Massachusetts, Arizona, Florida, and California, the corporation primarily concentrates on the legal cannabis and hemp industries. RWB has acquired Acreage Holdings Inc.’s Florida division. RWB currently operates a warehouse of 114,000 square feet in Florida, eight retail outlets, and a 400-square-foot office. The company plans to invest in a 45,000-square-foot greenhouse on 4.7 acres of land in Florida in August 2021. The acquisition could provide Sanderson, Florida’s 114,000-square-foot manufacturing facility, access to short-term expansion opportunities.
2023-Q1 Financial Highlights
- Revenues were $27.0 million for 2023-Q1.
- Gross profit, before fair value adjustments, was $9.4 million for 2023-Q1.
- Operating expenses were $10.9 million for 2023-Q1.
- Adjusted EBITDA was positive 100k for 2023-Q1.
In the first quarter of 2023, the Company successfully opened its fourth medicinal use retail shop in the state of Florida, in the city of Clearwater, Florida. Furthermore, the company announced the launch of PV product solutions in the adult-use Arizona market. Dispensaries throughout the state carry more than twelve (12) flavor profiles of its Premium 510 Vapes and Disposable Vape items.
RWBYF Stock Performance
RWBYF stock closed on June 13th at $0.0398, up 27.27% in the past month of trading days. The stock has a 52-week price range of $0.001-$0.1710 and is down 43.14% year to date.
TerrAscend grows and sells marijuana in the United States and Canada for medical and recreational use. The firm is a major cannabis grower in the United States, operating in Pennsylvania, New Jersey, and California. The company’s primary goals are to manufacture and market artisan cannabis goods, as well as hemp and cannabis-infused items. TerrAscend has developed several items under the Kind Tree brand in Maryland. Vapes and half-gram pre-rolls will be added to the Kind Tree brand’s product portfolio, currently manufactured in Maryland using 15 different flower varietals.
First Quarter 2023 Financial Highlights
- Net Revenue was $69.4 million, an increase of 0.6% sequentially and 42.8% year-over-year.
- Gross Profit Margin was 48.8%, compared to 44.6% in Q4 2022 and 32.1% in Q1 2022.
- Adjusted Gross Profit Margin1 was 49.0%, compared to 45.3% in Q4 2022 and 40.3% in Q1 2022.
- GAAP Net loss from continuing operations was $19.2 million, compared to $2.0 million in Q4 2022 and $13.8 million in Q1 2022.
- EBITDA from continuing operations1 was $6.1 million, compared to $30.0 million in Q4 2022 and $1.1 million in Q1 2022.
- Adjusted EBITDA from continuing operations1 was $12.2 million, compared to $12.2 million in Q4 2022 and $4.9 million in Q1 2022.
- Adjusted EBITDA Margin from continuing operations1 was 17.6%, compared to 17.7% in Q4 2022 and 10.1% in Q1 2022.
- Cashflow provided by (used in) continuing operations was $8.4 million compared to $7.3 million in Q4 2022 and ($18.8) million in Q1 2022.
- Free cash flow was a positive $5.9 million compared to ($6.9) million in Q4 2022 and ($23.0) million in Q1 2022.
- Cash and Cash Equivalents totaled $32.9 million as of March 31, 2023, as compared to $26.2 million as of December 31, 2022.
TRSSF Stock Performance
TRSSF stock closed at $1.59 on June 13th, down 3.05% in the past month of trading. Currently, the stock has a 52-week price range of $1.00-$3.12 and is up 40.71% year to date. According to analysts at CNN Business, TRSSF stock has a 12-month average price target of $2.16 per share. In this case, this would represent an upside of 35.96% from its last trading price of $1.59.
Navigating the Volatility: Tips for Investing in Marijuana Penny Stocks in June 2023
Examining their financials and press releases could assist you in determining the top cannabis companies much more effectively. Overall, some experienced investors are trading short-term holdings in major cannabis companies aggressively to profit from market volatility. Examine technical indicators and chart patterns before entering a trade to determine the optimum entry and exit points. By actively seeking out grade-A setups, you can boost your ability to close winning transactions. Because of their volatility, the top marijuana penny stocks may be among the most interesting to watch 2023.
Understanding the complexities of marijuana penny stock investing is critical, whether you’re an experienced trader looking to diversify your portfolio or an upcoming investor intrigued by the cannabis industry’s possibilities. We make an effort to provide you with the knowledge you need to make informed decisions and maximize the potential rewards of this fascinating sector through detailed analysis and professional perspectives.
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