Investing In Cannabis Stocks In 2021
Are you looking for different ways to invest in the best marijuana stocks to buy? For the past six months, the cannabis sector has been experiencing market declines. Now after a heavy pull back it could be time for cannabis stocks to see some upside. One area that has seen significant volatility in 2021 is marijuana penny stocks. For those investors not familiar with penny stocks these are any stocks trading under the $5 price point.
Namely, known for being a high-risk investment penny stocks are preferred by short-term traders for their price fluctuations. In general, investors use day trading and swing trading methods to capitalize on price swings. In the first quarter of 2021 top cannabis penny stocks rallied reaching new highs in February.
After that, they have seen declines that have them trading near their 2021 lows. At the present time, the cannabis sector has not been reacting to strong earnings or solid press releases. Instead, the only thing that’s been a catalyst for pot stocks is federal cannabis legalization and reform. As investors saw reform was not happening earlier in 2021 many have begun looking in other sectors for value.
Top Penny Stocks In 2021 And The Current Market
This has left many penny pot stocks trading at much lower levels and they could be primed to see some upside in the fourth quarter. Picking the best stocks to invest in requires some due diligence from investors. Notably, researching a company’s financials and studying how the stock performs in the market can help you establish the best positions. Because penny stocks trade at lower values investors can establish large positions with smaller amounts of capital.
This type of setup allows them to take profits on smaller incremental moves in the stock price in a day trade or swing trade. For investors looking for top marijuana penny stocks, we can start a list of stocks to watch for September. With several possible catalysts for marijuana stocks right now investors are keeping Congress on their radar hoping to get cannabis policy changes introduced this quarter. Let’s look at 2 top cannabis penny stocks for your list next week.
Top Marijuana Penny Stocks To Watch In September
Glass House Brands Inc.
Glass House Brands Inc. is one of the fastest-growing, vertically integrated cannabis and hemp companies in the U.S., with a decisive focus on the California market and building leading, lasting brands to serve consumers across all segments. From its greenhouse cultivation operations to its manufacturing practices, from brand-building to retailing, the company’s efforts are rooted in the respect for people, the environment, and the community that co-founders Kyle Kazan and Graham Farrar instilled at the outset. Through its portfolio of brands, which includes Glass House Farms, Forbidden Flowers, and Mama Sue Wellness, Glass House is committed to realizing its vision of excellence: outstanding cannabis products, produced sustainably, for the benefit of all.
In August Glass House reported its second-quarter 2021 results with net sales of $18.7 million an increase of 62% year over year. As a result, the company delivered gross profits of $8.7 million an increase of 56% from the previous year. Notably, the company had a gross margin of 46% in Q2 2021. In addition, the company had an adjusted EBITDA of $2.2 million a 100% increase from Q2 2020.
Currently, GLASF stock is trading at $5.55 up 19.13% on September 3, 2021. The stock has a 52-week price target of $4.70-$5.96 down 53.82% year to date. According to analysts at Wallet Investor GLASF stock has a 1-year forecast target price of $4.966 per share. So, as GLASF stock moves past its current target price could this stock see some more upside in September?
Lowell Farms Inc.
Lowell Farms Inc is a company establishing a large presence in the California cannabis market. Overall, 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. As a result, 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.
On August 16th 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% Recently, 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.
At the present time, LOWLF stock is trading at $1.18 down 3.24% on September 3rd. The stock has a 52-week price range of $0.924-$2.149 up 7.02% year to date. According to analysts at Wallet Investor LOWLF stock has a 1-year forecast price target of $1.854 per share. LOWLF stock has been declining for the past five trading days and is down 4.52% in that time. In this case, with some possible momentum in the cannabis sector LOLWF stock could be a top marijuana penny stock for your list in September.