Best Cannabis Stocks For Investors to Watch
Are you looking for top marijuana stocks to buy in 2021? In October most of the cannabis sector is trading near some of its lowest levels seen so far this year. One reason for this drop in market value is the fact that the US Congress has not passed marijuana legalization yet. Although the House Passed the SAFE Banking Act and The MORE Act in the past few weeks their continues to be a hold up in the Senate.
This has had a negative impact on the cannabis sector for the most part of 2021. Even though top pot stocks are not seeing any gains in the market most leading cannabis companies are performing well. So far this year cannabis companies have been delivering strong financials and showing growth potential. Although this has not translated into upside in the market it shows the strength of the marijuana market.
In the next five years, global cannabis sales are expected to more than double and many companies are positioned to gain market share. There are many different types of companies that can give traders exposure to the cannabis market. Some investors prefer vertically integrated marijuana stocks. These companies are the ones the produce cannabis from seed to sale in the industry. Other investors prefer ancillary marijuana stocks. Ancillary cannabis companies are those that support the cannabis industry without touching the actual plant.
How To Invest In Top Pot Stocks In 2021
For investors, the current stock prices for some of the top marijuana stocks to invest in could produce future returns for many investors. Before investing in cannabis, it’s important to consider some factors in the sector. For one the best cannabis stocks to buy are known for having substantial market volatility. This is always important to keep in mind when trading pot stocks. As we begin the fourth quarter it’s possible the cannabis sector begins to perform better.
[Read More] Ohio Will Soon Vote On Whether To Decriminalize Marijuana In 2021
Researching a company and doing your due diligence is a key factor in making good investments. In today’s trading, top marijuana stocks are recovering some of the value lost in the previous trading sessions. If this trend continues investors could see some upside from these price points. For investors looking for different ways to invest in the cannabis industry let’s look at 2 top cannabis stocks for your list in October.
Top Marijuana Stocks For Your Watchlist This Week
- AFC Gamma, Inc. (NASDAQ:AFCG)
- Ascend Wellness Holdings, Inc. (OTC:AAWH)
AFC Gamma, Inc.
AFC Gamma, Inc. is an institutional lender to leading cannabis companies with strong operations and cash-flow prospects. Founded in 2020, the company specializes in real estate security and other collateral, and locations in states with favorable supply/demand fundamentals and legislative environments. Primarily, AFCG provides innovative and customized financing solutions through first-lien loans, mortgage loans, construction loans, and bridge financings. In general, AFC Gamma’s principles are now focused on the exponential growth of the cannabis industry. In August, AFC Gamma announced it provided Beleaf Medical, LLC a secured credit facility of $23 million to fund its Missouri expansion.
AFC Gamma reported its Q2 2021 financials showing net income of $4.6 million or earnings of $0.34 per basic weighted average share of common stock. Additionally, the company saw distributable earnings of $5.8 million or $0.43 per basic average share of common stock. To highlight, in Q2 the company closed $71.3 million of new commitments and funded $77.8 million of new and existing commitments. AFC has paid its dividend for Q2 2021 of $0.38 per common share. As of August 1st, the company has a portfolio consisting of loan commitments worth $195.3 with $175.3 million of outstanding principal across 14 portfolio companies. In September the company raised its quarterly dividend by 13.2% to $0.43 per share. On October 4th the company posted a record $119.2 million in total new commitments during the third quarter of 2021.
AFCG Stock Performance
AFCG stock is trading at $22.14 on October 5th down 4.05% in the past five trading days. Currently, the stock has a price range of $19.75-$25.05 and is up 2.51% in six months. According to analysts at CNN Business AFCG stock has a 12-month median forecast price target of $26.75 per share. In essence, this would represent an upside of 21.59% from its current trading price.
Ascend Wellness Holdings, Inc.
Second on the list is AWH a vertically integrated operator with assets in Illinois, Michigan, Ohio, Massachusetts, and New Jersey. Generally, AWH owns and operates state-of-the-art cultivation facilities, growing award-winning strains and producing a curated selection of products. Its business provides accessible retail experiences, trusted products, and exclusive brand partnerships and produces and distributes Ozone branded products. Overall, the company’s cannabis product categories include flowers, pre-rolls, concentrates, vapes, edibles, and other cannabis-related products. At the present time, AWH operates 17 retail locations and sells its products to third-party licensed cannabis retail stores. To start October, Ascend is expanding its vertically integrated presence in Ohio.
AWH reported its second-quarter 2021 financial with net revenue of $83.4 million up 26.1% sequentially. Specifically, the company increased its 2021 full-year net revenue guidance to $330-$350 million. AWH sustained a net loss of $44.9 million in Q2 2021 mainly driven by a $32 million non-cash interest expense related to the company’s IPO completed in May of 2021. In 2021 the company added five new dispensaries year to date with 3 becoming operational in the second quarter. In September AWH announced it has brought legendary brand Lowell Smokes pre-rolls from Lowell Farms Inc. (OTC:LOWLF) to the Massachusetts market. The partnership is an expansion to a similar launch in Illinois by the two companies.
AAWH Stock Performance
AAWH stock is trading at $9.39 on October 5th up 4.44% in the last five trading days. The stock has a 52-week price range of $8.00-$15.81 and is down 8.81% in the last month. According to analysts at Tip Ranks AAWH stock has a 12-month average price target of $15.00 per share. In this case, this would be an upside of 59.71% from its current trading level. For investors looking for new pot stocks to possibly invest in these 2 could have potential in the future.
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