Best Cannabis Stocks As The Possibility Of Federal Cannabis Reform Increases
Top marijuana stocks have seen some declines from their recent uptrend in November. Although the end to federal cannabis legalization seems to be gaining momentum on Capitol Hill it is still being met with opposition by some lawmakers. This has reduced the upside many top cannabis stocks experienced in last week’s trading. But this recent reduction in value for most of the cannabis sector could be a good opportunity for investors.
Since reaching new highs in February 2021 the best pot stocks to buy have declined significantly until November. Now as many marijuana stocks begin to show a possible rebound it could be time to make a watchlist of cannabis stocks. In the US and Canada, there are many companies that will benefit from the US ending marijuana prohibition. The Canadian cannabis companies’ entry into the US market would help them grow significantly in the coming years.
In addition, current restrictions in the US market have also hindered how American companies operate and expand in the US. Although this has been a setback for top pot stocks in 2021, we could see a change to the current federal cannabis policy in the next few months. As lawmakers on both sides continue pushing for federal cannabis decriminalization and reform it seems it’s only a matter of time before we see change.
Finding Different Ways To Invest In The Cannabis Sector
Before investing in cannabis stocks, it’s important to do your own due diligence on a company. Researching a company’s earnings and press releases can help you find the companies that are growing rapidly. In addition, watching how a stock performs in the market can help you establish the best entry points for your investments. Making a watchlist can help you follow the best pot stocks and make entries into the market that can produce the greatest returns. Currently, there are many ways to gain long-term and short-term exposure to the growing cannabis industry. In some cases, investors are looking for long-term plays in the US and Canada.
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Other investors are taking advantage of the market volatility currently in the cannabis sector by trading marijuana penny stocks. For the most part, penny stocks are considered a high-risk reward area of the market that investors prefer to trade on a short-term basis. Primarily traders use day trading and swing trading methods to establish gains with cannabis penny stocks. Because penny stocks trade under the $5 benchmark traders can establish larger positions using much less capital. Let’s Look at 2 top marijuana stocks to add to your list before the end of cannabis prohibition.
Best Marijuana Penny Stocks To Watch This Week
- High Tide Inc. (NASDAQ: HITI)
- MedMen Enterprises Inc. (OTC: MMNFF)
High Tide Inc.
High Tide Inc is a retail-focused cannabis corporation that also manufactures and distributes consumption accessories. Overall, High Tide has a portfolio of companies that include a dominant Canadian cannabis retail chain, and a global manufacturer and distributor of cutting-edge smoking accessories. Primarily, the company has established the largest accessories eCommerce platform in the world. At the present time, High Tide has a footprint with 104 branded retail locations across Canada. In October High Tide closed on the acquisition of Blessed CBD and is entering the UK Market. On November 9th the company opened its 58th retail cannabis store in Alberta becoming the largest provider in the province.
In addition, the company completed the acquisition of Smoke Cartel Inc and launched the sale of hemp-derived CBD products under its Grasscity brand. High Tide continues to see rapid expansion into the US cannabis market through the acquisition of a leading online retailer Dankstop. Also important, the company reported its third-quarter 2021 results with revenue increasing by 99% to $48.1 million. As a result, gross profits increased by 75% to $16.7 million year over year. In detail, the company has an Adjusted EBITDA of $1.5 million compared to $3.4 million the prior year. The difference in the adjusted EBITDA is primarily related to High Tide’s uplifting to the NASDAQ.
HITI stock closed on November 16th at $7.53 down 4.08% for the trading day. Currently, the stock has a 52-week price range of $3.00-$13.29 up 150.62% year to date. According to analysts at Market Beat HITI stock has a consensus price target of $15.17 per share. In this case, this would represent an upside of 101.4% from its current trading price.
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MedMen Enterprises Inc.
MedMen Enterprises Inc. is a cannabis retailer with locations in California, Nevada, Illinois, and Florida. In general, the company has an extensive selection of high-quality products, including MedMen-owned brands LuxLyte, and MedMen Red. Expanding in Florida the company opened a new location in South Beach Miami and continues expanding and in the US cannabis market. MedMen’s current interim Chief Executive Officer and Chairman of the Board of Directors, Tom Lynch, became the permanent Chief Executive Officer.
On November 9th MedMen reported its first-quarter fiscal 2022 results. Specifically, first-quarter revenue increased 13.4% year over year to $39.8 million. In addition, the total gross margin rate was 43.9% in the first quarter down from 46.9% year over year. As it stands the company sustained a net loss of $55.3 million compared to a net loss of $21.9 million year over year. As of September 25th, the company had total assets of $531.9 million including cash and cash equivalents of $78.2 million.
MMNFF stock is trading at $0.25.5 on November 16th, down 20.06% in the past six months. The stock has a 52-week price range of $0.12-$1.47 and is up 96.61% year to date. According to analysts at Market Beat MMNFF stock has a consensus price target of $0.27 per share. In this case, this would represent an increase of 5.88% from its current trading level. As the possibility of federal cannabis reform increases MMNFF stock could be one of the best cannabis stocks to watch under $1.
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