Investing In Penny Stocks In July 2021
If you’re looking for marijuana stocks to buy right now, you are not alone. In 2021 many new investors made their way into the retail stock market and cannabis stocks in particular. Since the pandemic, the shutdown of global economies has left many without jobs and the stock market offered a wealth-building opportunity. With an influx of new investors, the stock market expanded greatly in this area.
In the first quarter of 2021 new investors found a handful of stocks that have become known as meme stocks. These stocks became favored by new investors on the Reddit platform. This coupled with investors on the popular new investment platform Robinhood fueled some major volume and drove these stocks much higher. Now as the aftermath unfolds top marijuana penny stocks are trading much lower in the market.
For those that don’t know penny stocks are securities that trade under the $5 price point. At the top of the year, cannabis penny stocks saw the most gains as the year began. Although now they are trading much lower this could be an opportunity to establish a position before they recover fully. But before investing in penny stocks there are a few factors to consider.
Top Marijuana Penny Stocks And Making Profitable Investments
For one penny stocks are known to be some of the more volatile stocks on the market. This makes them a high-risk investment that requires close attention. One way more traders are making profitable investments is by doing their own due diligence.
Ultimately researching a company and studying how the stock moves in the market can help you establish the best entry points for your investment. It’s also important to realize that because of volatility more investors prefer to trade this area of the market using short-term trading methods.
With this in mind, we can begin to take a closer look at some top marijuana penny stocks right now. Currently, these penny stocks could produce gains for investors from these lower trading levels. In June the cannabis sector began to see upward momentum that could continue in July. In 20201 these could be some of the best marijuana penny stocks to add to your watchlist this week.
Top Marijuana Penny Stocks In July 2021
The Valens Company Inc.
Recently, The Valens Company Inc. began advancing in new areas of the cannabis market and entered the flower, pre-rolled categories of the industry. The company introduced new edibles and concentrates in a partnership with Verse Cannabis. Primarily, Valens provides processing services, product development, and supplies consumer packaged goods for the cannabis industry. As a result, this partnership Valens will add a new dimension to the company’s portfolio. Valens continues in the production of high-quality cannabis-derived products for both the medical and recreational cannabis markets.
Recently Valens delivered fiscal first-quarter gross revenue of $21.8 million up 21.4% compared to Q1 of 2020. In addition, the company saw net revenue increase 24.7% to $16.0 million from the year prior. Valens continues to establish its place as one of the largest third-party vape manufacturers in the Canadian market. At the present time, the company has manufactured and distributed the second-best-selling vape SKU across the major markets in Canada. Now, Valens is establishing entry into the US market with the acquisition of a leading CBD company Green Roads. The company also entered into an agreement to manufacture beverages and edibles for Gallery Brands.
VLNCF stock closed on July 7th at $2.287 up 75.92% year to date. In May VLNCF stock reached a high of $3.31 and is down 14.68% in the last 30 days. According to analysts at Tip Ranks VLNCF stock has a 12-month average price target of $3.80 per share. In essence, this would represent an increase of 66.16% from its last trading price. For this reason, VLNCF stock is a top marijuana penny stock for your list in July.
Fire & Flower Holdings Corp.
Another retailer focusing on the Canadian cannabis market is Fire & Flower Holdings Corp. Additionally, the company has also been developing international expansion into new markets. Primarily, the company provides the best-in-class retailing and its HifyreTM digital platform connects consumers with cannabis products online. Recently, Fire & Flower made an entry into the U.S. cannabis market through a strategic licensing partnership with American Acres. The licensing partnership and acquisition option with American Acres gives Fire & Flower entry into the California, Arizona, and Nevada cannabis markets. Also, Fire & Flower subsidiary Hifyre entered into a strategic agreement with leading U.S. analytics company BDSA.
Fire and Flower delivered fiscal first-quarter 2021 revenue of $44.1 million up 91% year over year. This marks Fire & Flowers’s fourth consecutive quarter of positive adjusted EBITDA with $2.3 million. One area of growth is the company’s Hifyre digital retail platform generated $2.8 million in Fiscal Q1 an increase of 252% from the year prior. Although advancing Fire & Flower sustained a net loss of $61.6 million in the first quarter. In June the company announced a strategic supply agreement to expand its Humbles portfolio to Fire and Flower customers online and in-store throughout North America.
FFLWF stock closed at $0.825 on July 7th up 21.33% year to date. In February FFLWF stock reached a high of $1.20 and is down 12.41% in the last 30 days. According to analysts at Market Beat FFLWF stock has a consensus price target of $1.85 per share. This forecast would represent an increase of 124.2% from its last trading price. With this in mind, FFLWF stock could be one of the best marijuana penny stocks to buy this summer.
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