Best Cannabis Stocks In 2021
As we enter mid-October top marijuana stocks are trading near their lowest market value seen this year. After reaching new highs in February most of the best cannabis stocks to buy have been on a downward trajectory for about 8 months. This month market volatility is increasing but jobless claims have set pandemic era lows and banking earnings are topping expectations. One way to take advantage of increased market volatility is by trading marijuana penny stocks.
For those not familiar with penny stocks these are any stocks trading under the $5 price mark. Known to be a higher risk investment lower price points and extreme price fluctuations allow traders to use short-term methods to produce market gains. Many traders use day trading and swing trading methods to produce returns with cannabis penny stocks. In 2021 the cannabis sector rallied in the first quarter and many penny pot stocks gained triple-digit percentages in January and February.
Since that time the best marijuana penny stocks to buy have experienced significant declines. Now with a strong chance, Congress will revisit cannabis reform and marijuana legalization these marijuana penny stocks could see another rebound once legislation is passed. Whether this occurs now in Q4 or in 2022 remains to be seen but with a bipartisan push to end marijuana prohibition, this is now a possible future catalyst.
Researching Cannabis Companies and Navigating A Volatile Market
For investors, it’s important to research a company thoroughly before investing. Researching a company’s earnings and watching how the stock behaves in the market will help you achieve the best returns on your investments. In 2021 earnings reports have had little bearing on how top cannabis stocks trade in the market. Although many leading cannabis companies have reported strong revenue growth so far this year it has not helped market value for top pot stocks.
With the cannabis sector trading at lower levels, it could be time for traders to start a watchlist of the best marijuana penny stocks to invest in. Today in the market cannabis stocks began to show some upside after a few sessions of declines. Let’s look at 2 top cannabis stocks for your list right now.
Top Marijuana Penny Stocks For Your List In 2021
Acreage Holdings, Inc.
First on the list is Acreage Holdings, Inc. a US multi-state operator with cannabis cultivation and retail facilities across the US. At the present time, Acreage has a partnership and a possible acquisition with Canadian giant Canopy Growth Corporation (NASDAQ: CGC). In general, this partnership could make Acreage instrumental in Canopy’s entry into the US cannabis industry. Acreage has established a large presence in New York and New Jersey and could see significant growth in the coming years from the growing markets there. Currently, Acreage operates the maximum number of dispensaries allowed in New Jersey and is working on completing its New Jersey cultivation facility. In October the company acquired cultivation, processing, and retail operator in Ohio. Specifically, this would give Acreage a 70,000 sq. foot cultivation facility and 5 operating retail stores.
In August Acreage delivered its second-quarter 2021 results revenue growth of 63% and improvements to net loss. Consolidated revenue was $44.2 million up 15% sequentially. As a result, the company produced gross margins of 54% an increase of 12.6% year over year. Acreage had a net loss in Q2 2021 of $2.6 million an improvement from the $37.2 million year over year. Additionally, the company saw Adjusted EBITDA in Q2 2021 of $8.1 million compared to an EBITDA loss of $6.5 million year over year.
ACRHF stock is trading at $2.16 on October 14th down 61.88% in the past six months. Currently, the stock has a 52-week price range of $2.05-$9.00 down 31.94% year to date. According to analysts at Market Beat ACRHF stock has a consensus price target of $7.00 per share. In this case, this would represent an upside of 231.8% from its current trading price.
[Read More] Top Marijuana Penny Stocks To Watch Mid October
4Front Ventures Corp.
4Front Ventures is a national MSO and retailer advancing in mass-produced low-cost quality branded cannabis products in the US. At the present time, the company distributes a portfolio of over 25 cannabis brands. To highlight, 4Front has dispensaries in Illinois, Massachusetts, California, Michigan, and Washington state. Recently, 4Front closed the first phase of a 558k sq. ft. cultivation and production facility in Illinois. Specifically, the deal is backed by Innovative Industrial Properties, Inc. (NYSE:IIPR) and estimates construction to be complete by Q2 2022.
4Front reported its Q2 2021 financial results with systemwide pro forma revenue of $34.4 million versus sales of $31.4 million sequentially. As a result, the company delivered Q2 2021 adjusted EBITDA of $7.5 million an increase of 27% sequentially. Notably, 4Front reaffirmed its full-year guidance of pro forma revenue of $170-$180 million and adjusted EBITDA of $40-$50 million. On October 7th the company acquired New England Cannabis Corporation a best-in-class cannabis operator in Massachusetts. The acquisition includes a 55,000 sq. foot cultivation facility and more than doubles the companies flower production in the state.
FFNTF stock is trading at $1.02 on October 14th down 11.86% in the last six months. The stock has a 52-week price range of $0.50-$1.98 and is up 14.29% year to date. According to analysts at Stock Invest FFNTF stock is expected to decline by 14.75% during the next 3 months. This analysis is based on short-term trading patterns. As the possibility of federal cannabis.
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