Best Cannabis Penny Stocks In 2021
To close out September top marijuana stocks received some potential catalysts from the US Congress. In the past couple of weeks, the House has passed the SAFE Banking Act for the fifth time, and the MORE Act in yesterday’s session. Although the House has passed these legislations before the possibility of seeing it come to fruition in the fourth quarter of 2021 could be catalysts for cannabis stocks.
This year the cannabis sector has been extremely volatile. After top pot stocks reached new highs in February, they have seen declines for seven months. Hitting new lows for 2021 in September they could be positioned to see some upside to end the year. One way investors are taking advantage of the market volatility is by trading top marijuana penny stocks.
For those investors not familiar with penny stocks these are any stocks trading under the $5 mark. Known to be a higher-risk investment many investors trade cannabis penny stocks on a short-term basis. In general, many investors use day trading and swing trading methods to lock in returns with penny pot stocks. This allows them to establish a larger position size with much less capital. With this type of setup, traders can make gains with smaller moves in the stock because of the larger position size.
How To Invest In Pot Stocks And The Cannabis Industry
For investors finding top marijuana penny stocks right now could produce some returns when the cannabis sector recovers some of the value lost this year. With cannabis banking reform and federal marijuana legalization a possibility there. Is the potential for upside from these levels. Researching these cannabis companies and watching how the stock performs in the market can help you achieve the best returns on your investments.
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Some investors are taking advantage of the cannabis sector and its lower market values to establish positions for the short and long term. As we start October cannabis investors are expecting to see some upside from current trading levels. In 2021 although top cannabis companies delivered string financials this had little effect on market performance. So far this year federal cannabis legalization has been the biggest catalyst for the cannabis sector. Let’s look at 2 top marijuana penny stocks for your list to start October.
Best Marijuana Penny Stocks For Your List Right Now
Charlotte’s Web Holdings, Inc.
First on the list, Charlotte’s Web Holdings, Inc is one of the market leaders in Hemp CBD wellness products in the US. Currently, the company has held its leading industry position in the US CBD market for years and continues showing growth. Primarily, Charlotte’s Web has premium quality products made with American farm-grown hemp genetics. Specifically, the company manufactures this into hemp extracts and has the number one CBD brand in the US. At the present time, Charlotte’s Web has distribution through more than 22,000 retail locations across the nation. 
In August Charlotte’s Web reported its second-quarter 2021 results with revenue increased to $24.2 million versus $21.7 million year over year. Additionally, DTC eCommerce revenue increased 1.0% to $15.7 million equating to 64.9% of Q2 revenue. As a result, B2B revenue increased 37.7% year over year boosting gross profits to $15.8 million or 65.5% of consolidated revenue. The company has an adjusted EBITDA of $3.9 million and $27.1 million in cash.
CWBHF stock closed on September 30th at $1.94 down 6.66% in the past five trading days. The stock has a 52-week price range of $1.85-$7.00 and is down 41.22% year to date. According to analysts at Tip Ranks CWBHF stock has a 12-month average price target of $3.25 per share. In this case, this represents a gain of 67.53% from its last trading price.
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Lowell Farms Inc.
Lowell Farms Inc is a company establishing a large presence in the California cannabis market. At the present time, the company has advanced production capabilities, grows artisan craft cannabis, and built a portfolio of award-winning licensed cannabis brands for cannabis consumers. Recently, the company established a licensing agreement with Ascend Wellness Holdings. In detail, the two companies will bring Lowell Smokes brand to dispensary locations in Massachusetts and Illinois. In August the company announced its iconic Lowell Smokes pre-roll packs will be available in Illinois. Now, Lowell Smokes will be available to Illinois consumers throughout 8 retail locations in the state.
In August the company reported record cultivation output and record second-quarter 2021 revenue of $15.2 million. Lowell sustained an operating loss of $473 thousand an improvement from the $.8 million loss in Q2 2020. As a result, the company produced gross margins of 38% Lowell Farms announced it is commissioning a first-of-its-kind cannabis processing facility in Salinas Valley, California. This facility will be capable of processing 250,000 lbs. of flower cannabis annually. On September 30th the company debuted a limited-edition Hash Wrap at the Hall of Flowers trade show.
LOWLF stock closed on September 30th at $1.07 up 8.91% in the past five trading days. The stock has a 52-week price range of $0.887-$2.149 down 6.14% year to date. According to analysts at Wallet Investor LOWLF stock has a 1-year price forecast of $1.269 per share. In essence, this would be an upside of 18.59% from its current trading level. As federal cannabis legalization and reform take center stage, these could be top cannabis penny stocks for your list in October.
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