Investing In The Cannabis Sector Fir The Summer Of 2021
To start the month of June marijuana stocks could begin to see some gains in the market. In May the cannabis sector began recovering some of the market value it lost after reaching new highs in February. Now after several months of trading lower there are several catalysts that could cause the sector to bounce back in the market. For one cannabis reform legislation could make its introduction on the house floor this week.
If this legislation passes successfully through both the house and senate it could usher in a new climb for the top marijuana stocks right now. Finding the best cannabis stocks to invest in for June could be a potential game-changer for your portfolio in 2021.
From current trading levels, many cannabis stocks could produce returns for investors. But before investing in marijuana stocks there are few elements to consider about the cannabis sector.
One issue most top marijuana stocks have seen in the market is extreme volatility. In general, the area with the most volatility but also has delivered the most gains in 2021 is marijuana penny stocks. Because of the volatility, most investors consider this part of the cannabis market a high-risk high reward area. Primarily traders typically trade this part of the market on a short-term basis. Currently, day traders and swing traders take advantage of the price fluctuations taking profits when they present themselves.
Marijuana Penny Stocks And Reddit and Robinhood Investors
In 2021 marijuana penny stocks have received worldwide notoriety because of the Reddit investment community focusing on some of these cannabis penny stocks. In June with the sector climbing more investors might begin eyeing pot penny stocks for quick flips in the market.
But before investing in marijuana stocks it’s always important to do your own due diligence. Generally speaking, researching a company and studying how it performs in the market can help you make the best investments for your portfolio. At the present time, marijuana stocks represent one of the fastest-growing industries worldwide.
Primarily in the US and Canada, the cannabis market has continued to grow significantly in the past few years. In 2021 many analysts are predicting some upward momentum for the cannabis sector. Although marijuana penny stocks have their risk, they have delivered gains for traders this year. With this in mind let’s take a closer look at 2 top marijuana penny stocks to add to your watchlist this week.
Marijuana Penny Stocks To Watch
Sundial Growers Inc.
In May Sundial surprised investors with its first positive earnings report from operations in the company’s history. Primarily, the company saw first quarter 2021 earnings of C$1.7 million compared to a loss of C$32.7 million in Q4 of 2020. In addition, the company reported a first-quarter positive adjusted EBITDA of C$3.3 million compared to a loss of C$5.6 million the prior quarter. During the first quarter, Sundial delivered high-quality inhalable cannabis and invested in its library of premium cannabis strains. In Q1 the company managed to harvest its highest potency flower with Top Leaf’s LA Kush Cake producing an excess of 28% THC.
Specifically, Sundial has two segments they are focusing on for-profits their cannabis operations and the other is the company’s investments. Recently, the company realized C$2.8 million in interest and fee revenue from long-term loans to third parties. In addition, Sundial has C$12.9 million in realized and unrealized gains from investments in securities. Currently, Sundial is performing better than some of the larger Canadian cannabis companies in the first quarter. But will this translate into gains in the market?
SNDL Stock Performance
SNDL stock is trading at $1.03 up 6.1856% on June 1st during mid-day trading. In February SNDL stock hit a high of $3.96 and is currently up 104.86% year to date. In the past five days, the stock has climbed 28.48% in the market. According to analysts at CNN Business SNDL stock has a 12-month median price target of $0.73 per share. Currently, this is a 29.08% decline from current trading levels. Since SNDL stock is up so much from its price target there is the possibility that analysts have taken into account the influence Reddit and Robinhood investors have had on the stock price. For this reason, SNDL stock could be one of the best marijuana penny stocks to buy in June 2021.
MariMed Inc. is a cannabis multi-state operator that is developing its own brand state-licensed cannabis facilities and dispensary operations. In May the company announced its first-quarter 2021 results which reflect high revenue growth and profitability.
Primarily, core cannabis revenue increased by 230% to $24.6 million. In addition, the company saw an EBITDA increase of 764% to $7.6 million in Q1 2021 compared to Q1 of 2020. With this MeriMed has achieved its highest quarter of core cannabis revenue and profitability. In fact, the company has delivered gross profits on core cannabis revenue of $13.2 million. In Q1 MariMed also opened its fourth recreational Illinois dispensary.
MRMD Stock Performance
MRMD stock is trading at $1.075 On June 1st in the afternoon trading up 134.04% year to date. In the past five days, MRMD stock has risen 5.27% and reached a 52-week high of $1.17 in May. According to analysts at Stock Invest, MRMD stock is expected to rise 14.21% during the next 3 months. As June progresses MRMD stock could be a top marijuana penny stock to buy this month.