How US Federal Cannabis Reform Is Negatively Impacting Pot Stocks
Are you looking for the best marijuana stocks to buy before the end of federal cannabis prohibition? At the present time, many top cannabis stocks are trading at the lowest market value they have seen this year. This is mostly due to delays in the Senate regarding passing any form of federal cannabis reform in 2021. Currently attached to the NDAA is the SAFE Banking Act which Senate Majority Leader Chuck Schumer and Senator Corey Booker have previously announced they will not pass before federal marijuana legalization and decriminalization.
Presently this has negatively impacted the top pot stocks in the market and without resolve could continue to impact growth in the US and Canadian cannabis industries. In 2021 the leading Canadian cannabis companies have been planning entry into the American market. Some have done this through strategic acquisitions that will allow them to establish their market share in the US when it becomes legal to do so.
Others have entered the US through the CBD market and have already established a presence in the states. Right now, the Canadian cannabis industry continues to grow globally as cannabis is accepted medically in new parts of the world. Although Canadian cannabis companies have not performed as well as US companies in 2021, they have shown some revenue growth throughout the year.
Finding The Best Cannabis Stocks To Invest In Right Now
Before investing in cannabis stocks, it’s always important to do your own due diligence on a company. Researching a company’s earnings and following how a stock performs in the market can help you realize better returns on your investments. In addition, the cannabis sector is known for having significant market volatility. Because of these, some top pot stocks are considered a high-risk high reward area of the market. As we begin to close out a volatile 2021 let’s look at 2 top Canadian cannabis stocks for your list this month.
Canadian Marijuana Stocks To Watch In December 2021
Canopy Growth Corporation
At the present time, Canopy Growth is one of the largest producers and distributors of cannabis and cannabis-derived products in the Canadian market. In general, the company sells cannabis and hemp-derived products in Canada, the US, and Germany. Earlier in 2021, Canopy made a US distribution agreement with Southern Glazers Wine & Spirits for a CBD beverage portfolio. In the Canadian market Canopy increased its brand portfolio with the acquisition of one of the countries premium cannabis brands The Supreme Cannabis Company, Inc. Additionally, the company introduced Whisl an innovative CBD vape designed to manage your mood throughout the day. In October the company announced it has plans to acquire Wana Brands the #1 edibles brand in North America. On November 17th the company announced it expanded its premium flower portfolio with 10 new strains across its 7ACRES and DOJA brands.
Words From The Vice President
“The strong performance of our premium flower strains DOJA Okanagan Grown Ultra Sour and 7ACRES Jack Haze have helped Canopy build on its #1 market share in Canadian premium dried flower, with twice the market share of our leading competitor last quarter. “We are committed to providing the Canadian consumer with a wide range of flower products and the launch of these ten new flower offerings delivers the premium credentials they’re looking for.”
Kelly Olsen, Vice President, Global Flower Business
Canopy released its second-quarter fiscal 2022 financial results with $131 million and a total net cannabis revenue of $95 million. As it stands the company saw a net loss of $16 million in Q2 fiscal 2022. Overall, Canopy had an Adjusted EBITDA loss of $163 million in Q2 FY 2022.
CGC Stock Performance
CGC stock is trading at $10.11 on December 1st down 5.52% for the trading day. Currently, the stock has a 52-week price range of $9.92-$56.50 with this low happening in today’s trading. According to analysts at CNN Business CGC stock has a 12-month median price target of $12.06 per share. This would represent an increase of 19.04% from its last trading price.
OrganiGram Holdings Inc.
OrganiGram Holdings Inc. is one of the leading licensed producers of cannabis and cannabis-derived products in Canada. Primarily the company is known for producing high-quality, indoor-grown cannabis products to both the medicinal and recreational markets. At the present time, Organigram is developing its international business partnerships increasing the company’s presence in the global cannabis industry. In addition, the company is also growing its wholesale shipping of cannabis and sells products online. Recently, Organigram extended its SHRED product portfolio with high quality, SHRED’ems Gummies. Also, the company launched Edison JOLTS Canada’s first flavored high potency THC ingestible extracts.
OrganiGram produced 84 new SKUs since July 2020 as a part of revitalizing its products portfolio. To highlight, this includes two new high potency strains under the higher-margin Edison brand in Q3. In November the company released its fourth quarter and fiscal 2021 results Q4 net revenue of $24.9 million compared to $20.4 million in Q4 fiscal 2020. In addition, Q4 Fiscal 2021 adjusted gross margin was $3 million or 12% of net revenue. The company sustained a net loss of $26 million compared to a net loss of $38.6 million in the same period the prior year. Organigram gave an outlook for Q1 fiscal 2022 revenue to be higher than Q4 fiscal 2021.
OGI stock is trading at $1.92 on December 1st down 6.37% in today’s trading. The stock has a 52-week price range of $1.28-$6.45 and is up 53.38% year to date. According to analysts at Tip Ranks OGI stock has a 12-month average price target of $2.54 per share. In this case, this would represent an upside of 32.64% from its last trading price.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | firstname.lastname@example.org