Cannabis Sectors Recent Performance
In February top marijuana stocks have reached new highs in the market and have since fallen too much lower levels to close the month. On February 10th leading cannabis stocks peaked in the market to new 52-week highs. In reality, this could be a gauge as to where the cannabis sector could go with federal reform in the U.S. being implemented.
Since the presidential election in November, the cannabis industry has rallied around new Democratic leadership. This is due to the possibility of passing cannabis reform in 2021. Although currently, the federal government has its hands full with the pandemic and U.S. economic recovery, they have shown interest in cannabis reform and decriminalization.
Currently, top ancillary marijuana stocks like Innovative Industrial Properties, Inc. (NYSE: IIPR) decreased 14.32% in the market after its Q4 2020 earnings results fall short of expectations. Although the company delivered $116.9 million in total revenue up 162% year over year investors sold off IIPR stock. Prior to this recent sell-off, the stock has been seeing upward momentum in the market and has become a favorite amongst hedge fund investors. But this recent drop in the marijuana sector could be an opportunity to find cannabis stocks in the market at lower prices.
Finding Growth Potential In 2021
So which marijuana stocks to buy will have the most growth potential in 2021? In 2020 new cannabis investment opportunities have been entering the market by way of SPAC deals. These Special Purpose Acquisition Companies have become the vehicle of choice for entry into the open market.
Recently one of these companies Silver Spike Acquisition Corp. (NASDAQ: SSPK) acquired WM Holdings Inc. better known as Weedmaps and brought it public. At the present time, SSPK stock is up 82.07% YTD and came to the market on December 10, 2020. In essence, these new opportunities could become some of the biggest cannabis companies in the future.
In reality, the cannabis industry will see substantial growth in the next five years. As 2021 is gearing up to become a monumental year for advances in the cannabis market investors should research the best options in pot stocks. Doing your due diligence before investing is essential to making good investment decisions. For the purpose of finding possible cannabis stocks to buy in March. Let’s take a deeper look at 2 marijuana stocks to add to your watchlist for next week.
- Are These Marijuana Stocks Better Long or Short-Term Investments?
- Are You Buying This Dip In Cannabis Stocks? 2 Marijuana Stocks to Watch Next Week
Marijuana Stocks To Watch:
Columbia Care Inc.
Columbia Care Inc. is one of the largest multi-state operators and providers of medical and adult-use cannabis products to the U.S. and E.U. currently holding licenses in 18 U.S. jurisdictions the company operates 108 facilities including 81 dispensaries and 27 cultivation and manufacturing facilities. In February Columbia Care was awarded five medical dispensary permits in West Virginia. The company became one of 10 that currently holds cannabis processing and cultivation licenses in the state. In addition, Columbia Care also has a hemp cultivation license and has plans to also acquire Green Leaf Medical in the summer pending regulatory approval.
On February 25th Columbia Care announced the closing of a previously announced bought deal private placement offering. In detail, the company sold 3.22 million common shares at a price of $7.11 per share for proceeds of $22.898 million. The company has recently been expanding into new cannabis markets in the U.S. Advances in 2021 could have a substantial effect on revenue growth.
CCHWF stock is up 13.22% year-to-date with a high of $7.89 in February trading. On February 25th CCHWF stock closed at $6.85 down 1.30% for the day. According to analysts at Stock Invest CCHWF stock is expected to rise by 67.44% during the next 3 months. This analysis is based on the stocks short term trends in the market. With this in mind, CCHWF stock could be a cannabis stock to invest in for March.
TPCO Holding Corp.
TPCO Holding Corp. otherwise known as The Parent Company is one of California’s leading vertically integrated cannabis companies that recently became public by way of a SPAC deal. The company combines California’s leading direct-to-consumer platform CALIVA and leading cannabis and hemp manufacturer Left Coast Ventures to form a cannabis industry leader. In addition, TPCO has brought on the global icon and entrepreneur Shawn “Jay-Z” Carter as the Chief Visionary Officer and entertainment powerhouse Roc Nation to create a leading voice in the post-prohibition era. The company could have a huge social impact with its association with artists, athletes, and influencers as things progress.
In 2020 TPCO’s subsidiaries combined for revenue of $185 million and has $381 million in cash remaining in escrow. Currently, the company has one of the strongest balance sheets in the U.S. and could grow significantly in 2021. While California continues to be the largest cannabis market in the U.S. TPCO could gain revenue growth in the future.
GRAMF stock is at $10.50 on February 25th after the close with a high of $13.96 on January 14th. Currently, analysts at MarketBeat are giving GRAMF stock a consensus price target of $15.00. In essence, this would be a 38.9% gain from current levels. For this reason, GRAMF stock is a top marijuana stock to add to your watchlist for 2021.
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