Best Cannabis Stocks In 2022 And How To Trade Current Market Volatility
Right now, top marijuana stocks are trading near new lows established in April of 2022. As overall market volatility and delays with federal marijuana legalization continue to affect the best cannabis stocks to watch this could be an opportunity for new investors that are looking to gain exposure to the cannabis industry. In 2021 the cannabis sector saw extreme volatility reaching new highs in February and then gradually declining every month after.
To start this year’s trading the overall market has experienced the worst four months since 1939 leaving many areas of the market trading at much lower levels. One area that is known for significant volatility in marijuana penny stocks. For those not familiar with penny stocks these are any stocks that trade under the $5 benchmark. In general cannabis penny stocks are known for volatile price fluctuations that many cannabis investors take advantage of on a short-term basis.
Specifically, many active traders use day trading and swing trading techniques to produce gains with short-term holds. In May many leading US MSOs are also trading near penny stocks levels like Cresco Labs Inc. (OTC: CRLBF) and Curaleaf Holdings, Inc. (OTC: CURLF). In these cases, these discounted price points could offer retail investors value for short- and long-term investments.
The Cannabis Industries Growth And Penny Stocks In 2022
For the next five years, the cannabis industry is forecast to more than double in size as the legal market grows. According to a 2022 report from Statista by 2027 spending on legal cannabis is expected to reach $47.3 billion in North America. In 2022 North American cannabis sales are forecast to reach $20.9 billion showing substantial future growth in the industry.
Before investing in penny stocks, it’s important to research a company before starting a position. Researching a company’s finances and press releases can help you find the best-performing companies to invest in. In addition, watching how penny stock moves in the market and using chart patterns and technical indicators to establish the best entry points can help increase your profitable trades. As the Fed delivers its new adjustments to combat inflation let’s look at 3 top marijuana penny stocks to watch right now.
Best Marijuana Penny Stocks To Watch On May 4, 2022
Glass House Brands Inc.
Glass House Brands Inc. is a vertically integrated cannabis and hemp company with one of the fastest-growing markets in the country. The company focuses on the California market, where it develops cutting-edge, long-lasting brands to fulfill the demands of consumers across a wide range of industries. The company’s successful endeavors include Glass House Farms, Forbidden Flowers, and Mama Sue Wellness, to name a few. The business acquired a 5.5 million square foot greenhouse in Southern California in September. Mark Vendetti is now the organization’s, Chief Financial Officer. PLUS, a well-known California edibles company, was purchased for $25.6 million in December.
Glass House reported net sales of $69.4 million in 2021, up 44 percent from the same period in 2020. Net sales during the fourth quarter of 2021 grew by 7% to $18.4 million. In addition, by the end of 2021, the corporation had a cash balance of $51.1 million. Importantly, the company’s gross earnings dropped 116 percent to $0.4 million in Q4 2021, and gross profits in 2021 dropped from $18.7 million in 2020 to $16 million. In Q4 2021, adjusted EBITDA fell 71 percent to $(9.1) million. Adjusted EBITDA for the full year 2021 was – $11.8 million. The company will announce its first-quarter 2022 results on May 12th. GLASF stock ended at $4.01 on May 3rd, up 3.35% year to date. Currently, the stock has been trading in a 52-week range of $3.43-$13.99.
Lowell Farms Inc.
Lowell Farms Inc is a California-based cannabis company that is quickly growing its market share. The company’s primary objectives include developing an award-winning portfolio of licensed cannabis brands for cannabis consumers, as well as creative production capabilities, artisan craft cannabis growing, and the development of an award-winning portfolio of licensed cannabis brands for cannabis consumers. The company has struck a licensing agreement with Ascend Wellness Holdings. The two companies will collaborate to provide the Lowell Smokes brand to Massachusetts and Illinois dispensaries. In November, Lowell and Ascend announced that the Lowell Smokes brand will expand to Michigan. According to the company, the well-known Lowell Smokes pre-roll packages will also be available in Illinois. In April the company became the exclusive distributor of Zippo for California cannabis dispensaries.
In March Lowell announced its unaudited fourth quarter and fiscal 2021 results generating revenue of $53.7 million for the year. Additionally, the company delivered fourth-quarter revenue of $15.1 million up 65% year over year. Bulk wholesale sales increased by 30% to $2.6 million and total revenue from out-of-state licensing reached $1.1 million in Q4. In September, the business unveiled a limited-edition Hash Wrap at the Hall of Flowers trade event. After the bell today, the company will report its fourth-quarter and full-year 2021 results. The company will deliver its first-quarter 2022 results on May 10th after the close. The shares of LOWLF closed at $0.2423, on May 3rd down 40.90% in the past month. The stock is now trading in a 52-week price range of $0.227-$1.49 and is down 23.90% year to date.
[Read More] Top Marijuana Stocks To Watch For Trading In May
TILT Holdings Inc.
TILT Holdings Inc., a company focused on worldwide markets, offers business solutions to cannabis entrepreneurs looking to develop a global brand. The companies’ key clientele include the United States, Canada, Israel, Mexico, South America, and the European Union. To be clear, TILT has a huge portfolio of businesses that supply technology, hardware, cultivation, and manufacturing to other top cannabis businesses. Overall, the company provides medical-grade inhalation devices to the medicinal cannabis markets in the United States and Europe. On May 16th the company will release its first-quarter 2022 results after the close.
The company released fourth-quarter and full-year 2021 results on March 30th, as well as 2022 guidance. In the fourth quarter, the company generated $54.1 million in sales and $4.8 million in Adjusted EBITDA. Revenue for the full year 2021 grew by 28% over the previous year to $202.7 million. Additionally, adjusted EBITDA increased to $22.5 million in FY 2021, and gross profit before fair value adjustments increased to $46.7 million. TILT anticipates yearly sales of $255-$265 million and adjusted EBITDA of $27-$32 million in 2022. Furthermore, the corporation established a collaboration with the Shinnecock Indian Nation to enter the New York cannabis market.TLLTF stock is trading at $0.205 on May 3rd down 27.74% in the past month. The stock has a 52-week price range of $0.171-$0.588 and is down 8.89% year to date.
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