Investing Potential in US Cannabis Stocks for August 2023
As August 2023 arrives, the marijuana sector finds itself at the forefront of the global economic scene, enticing seasoned investors and newcomers. Marijuana stocks, formerly controversial, have matured into a powerful asset class, attracting investors with prospects of large profits. However, in the green rush, it is critical to recognize the importance of effective risk management measures to navigate this ever-changing market successfully.
The present-day cannabis industry has come a long way since its humble beginnings. As more nations legalize cannabis for medical and recreational use, the sector sees unprecedented expansion. Investors are now confronted with various top marijuana stocks and cannabis-related companies, requiring an attentive eye on potential and risks. In this volatile environment, being current on regulatory changes, technological breakthroughs, and market trends is critical for maximizing earnings while reducing risks.
The cornerstone of any successful cannabis investment strategy is vigilant risk management. As with any emerging sector, volatility is expected, and investors should proceed with care in the cannabis market. Diversification, due investigation, and a long-term view are all essential considerations for constructing a solid cannabis investing portfolio. Understanding the companies’ financial health, competitive advantages, and management teams will help investors distinguish between speculative hype and long-term growth prospects.
[Read More] 3 Marijuana Stocks To Watch First Week Of August
Top US Cannabis Stocks to Keep an Eye on in August 2023
- Cresco Labs Inc. (OTC: CRLBF)
- Columbia Care Inc. (OTC: CCHWF)
- StateHouse Holdings Inc. (OTC: STHZF)
Cresco Labs Inc.
Cresco Laboratories is a cannabis vertically integrated company based in the United States. The company is setting the standard for developing branded cannabis products nationwide. The company operates 63 retail sites and 20 industrial properties across 11 states. In March, the firm built locations in Palm Harbor and Lake Worth, bringing the total number of dispensaries in Florida to 28. The company announced the termination of its $2 billion merger with Columbia Care on July 31st. In addition, the corporations called off an agreement with hip-hop entrepreneur Sean “Diddy” Combs to buy some divested operations in New York, Massachusetts, and Illinois for up to $185 million.
Words From The CEO
“In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders,”
Cresco CEO Charles Bachtell
Q1 2023 Results
Cresco’s sales were $194 million in the first quarter of 2023, a 3% decrease from the previous quarter. Furthermore, the number of branded equalized units increased by 32% year over year to 17.6 million. The adjusted gross profit for the company was $89 million, accounting for 46% of sales. Cresco reported a net loss of $28 million in the first quarter. Sunnyside presently has 63 locations, with eight in Florida and eight in Pennsylvania. In addition, Cresco’s online retail sales through the company’s e-commerce platform topped $1 billion.
CRLBF Stock Performance
CRLBF shares finished on July 31st at $1.6270, down 3.44% in the last five days of trading. The stock is presently trading in a 52-week price range of $1.30-$4.45, showing a 12.55 percent decline year to date. According to analysts at CNN Business, CRLBF stock has a 12-month median price target of $2.57 per share. In this case, this represents an upside of 63.16% from its last trading price of $1.6270.
[Read More] August 2023 Spotlight: Top US Marijuana Stocks for Short-Term Traders
Columbia Care Inc.
The territory of Columbia Care Inc. in New York should dramatically increase. The company, one of the top cannabis producers on the East Coast, just purchased a 34-acre Long Island facility. Columbia Care now has 131 dispensaries and 33 growing and processing facilities throughout 18 cities in the United States. In October 2021, the company intends to launch its first marijuana store in Missouri. The third gLeaf dispensary in Virginia has notified the corporation of its location. On July 31st, the company announced corporate actions to accelerate operational efficiencies and cash flow generation.
First Quarter 2023 Results
- Quarterly Revenue of $125 Million, an Increase of 1% YoY
- Quarterly Gross Profit of Over $47 Million, an Increase of 13% QoQ
- Quarterly Adjusted EBITDA1 of Over $16 Million and Adjusted EBITDA Margin1 of Over 13%
- In Q1 2023, launched a new line of formulated cannabis tablets, Press 2.0, in Delaware, Massachusetts, New Jersey, Virginia, and West Virginia
- Retail share of internal brand sales increased to 46% in Q1 2023 compared to 45% in Q4 2022
- In-house brands accounted for 60% of all flower sold at Columbia Care dispensaries in Q1 2023
- There are now 35 Cannabist locations in the U.S., with additional openings planned in 2023
CCHWF Stock Performance
CCHWF stock closed on July 31st at $0.4399, down 7.98% in the last trading month. The stock has a 52-week range of $0.3550-$2.23, down 41.42% year to date. According to analysts at CNN Business, CCHWF stock has a 12-month average price target of $1.22 per share. In this case, this is an upside of 191.05% from its last trading price of $0.4399.
[Read More] Top Marijuana Stocks For Better Cannabis Investing
StateHouse Holdings Inc.
StateHouse was formed by integrating four forward-thinking legacy enterprises with a long history in California cannabis: Harborside, Loudpack, Urbn Leaf, and Sublime. Harborside was one of the first six businesses in the United States to receive a cannabis license. Harborside, as it was previously known, presently has 13 locations throughout Oregon and California. In 2021, StateHouse expanded its footprint in California, and this trend is projected to continue. StateHouse’s Salinas growing facility has expanded, allowing for year-round production and more than doubling crop capacity.
Q1 2023 Highlights
- Q1 2023 net revenues were $24.7 million, an increase of 42.8% compared with $17.3 million in Q1 2022.
- Retail revenues were $14.4 million, representing 58.5% of total sales for Q1 2023, an increase of $2.8 million compared to Q1 2022.
- Gross profit before adjustments for biological assets increased 98% to $10.9 million in Q1 2023, compared with $5.5 million in Q1 2022.
- Consolidated gross margins improved to 44.3% in Q1 2023, compared to 31.9% for Q1 2022.
STHZF Stock Performance
STHZF stock closed at $0.025 on July 31st and has a 52-week price range of $0.02-$0.4950. In this case, STHZF stock has increased 7.84% in the last five days of trading.
[Read More] Investing In Marijuana Stocks? 3 To Watch Today
Navigating The cannabis Sector And Using Technical Analysis
In conclusion, August 2023 presents a ripe opportunity for investors seeking to capitalize on the soaring potential of top marijuana stocks. However, achieving success in this burgeoning sector necessitates a prudent approach, combining proper risk management and technical analysis to navigate the unpredictable waters of the cannabis market.
By adopting a disciplined risk management strategy, investors can safeguard their portfolios from the inherent volatility of the cannabis industry. Diversification across different cannabis stocks and cannabis-related companies can mitigate the impact of potential setbacks in individual investments. Additionally, setting clear risk-reward ratios and stop-loss orders allows for measured decision-making, preventing emotional reactions to market fluctuations. As with any investment, a long-term perspective remains essential, enabling investors to weather short-term market turbulence and capitalize on the industry’s long-term growth trajectory.
Technical analysis is a valuable tool in identifying entry and exit points for trades within the marijuana sector. Investors can make informed decisions based on market data rather than emotional impulses by studying historical price patterns, chart trends, and key technical indicators. Combining technical analysis with fundamental research, such as scrutinizing company financials and evaluating industry trends, provides a well-rounded approach to selecting the most promising marijuana stocks. Embracing this synergy of risk management and technical analysis empowers investors to navigate the ever-evolving cannabis market with confidence, enhancing their chances of reaping substantial rewards in August 2023 and beyond.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
