Marijuana Momentum: Penny Stocks Poised for a Strong Finish in August
Welcome to the intriguing world of marijuana stocks, where we will look at the top prospects for the next week in August 2023. These emerging opportunities in the cannabis sector have caught the interest of investors looking for potential profits. By harnessing the power of technical indicators, astute traders can navigate the volatility of these stocks and uncover promising short-term trading possibilities.
In this volatile market, employing technical indicators to identify prime entry and exit points is critical. Oscillators such as the Relative Strength Index (RSI) highlight overbought and oversold levels, allowing traders to make more educated decisions. Moving averages, such as the 50-day and 200-day averages, provide insight into patterns and assist investors in identifying future price reversals. Traders can gain a full understanding of stock price fluctuations by combining these indicators with candlestick patterns.
As we look ahead to next week’s potential movers and shakers, remember that trading marijuana penny stocks necessitates vigilance and strategy. While quick profits are appealing, so does the risk of sharp declines. Diligent analysis, astute use of technical tools, and industry awareness will point investors to intriguing possibilities in the burgeoning cannabis sector.
[Read More] Emerging Trends: Marijuana Stocks to Monitor Leading Up to September 2023
Keeping an Eye on These Marijuana Penny Stocks
- WM Technology, Inc. (NASDAQ: MAPS)
- Neptune Wellness Solutions Inc. (NASDAQ: NEPT)
- Flora Growth Corp. (NASDAQ: FLGC)
WM Technology, Inc.
Weedmaps is an online cannabis marketplace and a user and corporate directory. The company’s owner is WM Technology, Inc. As their operating system, cannabis stores commonly use WM Business’s cloud-based SaaS solutions. The solutions and services provided by WM Business typically make it easier to comply with the cannabis industry’s complex and ever-changing regulatory needs. WM Technologies expanded its product portfolio in May by introducing a digital payment option in Ontario. Small companies benefited as curbside pickup, delivery, and cashless transactions became more common.
Second Quarter 2023 Financial Highlights
- Revenue was $50.9 million compared to $58.3 million in the second quarter of 2022 (“prior year period”).
- Average monthly paying clients(1) was 5,609, as compared to 5,537 from the prior year period.
- The average monthly revenue per paying client(2) was $3,022, as compared to $3,509 from the prior year period.
- Net income was $2.0 million as compared to net income of $19.8 million from the prior year period.
- Adjusted EBITDA(3) was $10.2 million as compared to $(0.6) million from the prior year period.
- Basic and diluted net income per share were both $0.01 based on 92.9 million and 93.6 million of Class A Common Stock weighted average shares outstanding, respectively.
- Total shares outstanding across Class A and Class V Common Stock were 148.9 million as of June 30, 2023.
- Cash totaled $24.6 million as of June 30, 2023, with no debt.
MAPS Stock Performance
MAPS stock closed at $1.18 on August 25th, up 7.27% in the last week of trading. The stock has a 52-week price range of $0.596- $2.875 and is up 20.85% in the last month. According to analysts at CNN Business, MAPS stock has a 12-month average price target of $2.06 per share. Essentially, this would represent an upside of 72.69% from its last trading price of $1.18.
[Read More] 3 Marijuana Stocks For Your 2023 Watchlist
Neptune Wellness Solutions Inc.
Neptune Wellness Solutions Inc. merged completely with a consumer goods company last year. The newly formed company will sell CBD-infused beverages, such as flavored teas and lemonades, in the United States. Neptune is transitioning from a huge consumer goods company to a business-to-business hemp and cannabis extraction firm. Customers can already purchase cannabis, nutraceuticals, cosmetics, personal care items, organic food, and cannabis from the company. In October, Jessica Adkins was designated Senior Vice President of Corporate Communications. Pre-rolls for Neptune’s December Mood Ring are now available in Ontario and Alberta.
First Quarter 2024 Financial Highlights:
- Its consolidated net revenue of $10.6 million, down from $16.3 million for the same period last year. This is largely due to a decrease of $2.7 million or 100% in Cannabis revenues from the now-divested Cannabis business, as well as decrease of $2.9 million in nutraceutical revenues versus the same period last year due to the timing of orders, offset by an increase in revenue from food and beverages.
- Gross profit of $2.8 million compared to a gross loss of $4.5 million for the same period last year. This improvement in the gross profit was attributable to the increase in food and beverage revenues, the divestiture of the cannabis business, and cost-cutting measures, offset by the decrease in nutraceutical revenues due to the timing of customer orders.
- Consolidated SG&A expenses of $10.0 million compared to $9.0 million in Q1 of fiscal 2023, an increase of $1.0 million or 12%. This was primarily due to the increase in consulting expenses and accounting fees relating to the filing of the 10K.
- Sprout achieved gross margins of 26% in the first quarter, ahead of our previous guidance targeting 22% for fiscal 2024.
- Biodroga reported gross margins of 28%, reflecting effective cost management initiatives.
- Reported first-quarter net loss of $6.4 million compared to a reported net loss of $6.5 million in the comparable period in fiscal 2023.
- Adjusted EBITDA (non-GAAP) loss of $7.3 million compared to an Adjusted EBITDA (non-GAAP) loss of $11.4 million same period 2023.
NEPT Stock Performance
NEPT stock closed at $0.1899 on August 25th, up 37.81% in the last week of trading. The stock has a 52-week price range of $0.11-$2.56, up 46.08% in the last month.
[Read More] The Best Marijuana Stocks For Cannabis Investing 2023
Flora Growth Corp.
Flora Growth Corp., a global consumer goods and pharmaceutical distributor with 20,000+ distribution points reaching all 50 states and 28 countries, has partnered with TruHC Pharma GmbH (“TruHC”), a medical cannabis expert based in Hamburg, Germany. TruHC is an EU-GDP-certified medical cannabis importer, distributor, and manufacturer, and it has a production facility with a cutting-edge cannabis laboratory, for which an EU-GMP license is expected by the end of September.
Financial and Operating Highlights for the Quarter
- Flora generated $21.5 million in revenue, a 140% increase year-over-year.
- Gross profit increased 19% year-over-year to $4.0 million.
- Net loss of $44.6 million. Net loss in the quarter includes the impact of impairment expenses of $34.9 million, losses on discontinued operations of $7.6 million, depreciation and amortization of $0.9 million, and share-based compensation of $0.3 million.
Financial and Operating Highlights for the Year-to-Date
- Flora generated $40.8 million in revenue, a 210% increase year-over-year.
- Gross profit increased 68% year-over-year, to $9.3 million.
- Net loss of $48.5 million. Net loss in the period includes the impact of impairment expenses of $34.9 million, losses on discontinued operations of $8.3 million, depreciation and amortization of $1.7 million, and share-based compensation of $1.0 million.
FLGC Stock Performance
FLGC stock closed at $2.16 on August 24th and has a 52-week price range of $0.17-$25.40. In this case, a CNN Business analyst has given FLGC stock a median price target of $20 per share. This would represent an upside of 821.66% from its last trading price of $2.16.
Last-Week August Edition for Marijuana Investors
Finally, the last week of August 2023 is pivotal for marijuana penny stock investors. Investors can maneuver this volatile market with skilled technical analysis and market awareness, positioning to grasp potential gains while managing risks. As these top cannabis penny stocks enter the spotlight, remember that careful decision-making, continuous watching, and adaptability will be the foundations of profiting from this volatile market. So brace yourself for an exciting week of investing when precise moves could result in huge returns in the ever-changing world of marijuana penny stocks.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
