Top Cannabis Stocks To Watch Before The New Year
This week has been a volatile week for top marijuana stocks to watch. With the Fed meeting scheduled for today, many investors are sitting on the sideline waiting to see if they make significant changes to the policy to hedge against inflation. In general, the end of the year Santa Claus rally could be curved if they increase the timeline of their adjustments.
In 2021 the cannabis sector has seen substantial declines as the year has progressed. This is mostly due to the delays in Congress to end prohibition as expected by investors. After reaching new highs in February 2021 most of the cannabis sector has experienced declines and is now trading near the lowest levels seen this year in December. Although the cannabis sector is struggling in the market in the US the cannabis industry has been growing rapidly on the state level.
As new states begin to implement medical and recreation cannabis markets the industry has substantial prospective growth ahead. In general, some of the best-positioned cannabis companies could offer investors potential on current fundamentals alone. In 2021 most leading cannabis companies reported significant revenue growth which unfortunately did not translate into gains in the market. Heading into 2022 top marijuana stocks could have the potential for active traders.
SAFE Banking Act And Its Negative Impact On The Cannabis Sector
After taking a beating once the announcement was made that the SAFE Banking Act was no longer on the NDAA most pot stocks have a significantly higher price target from analysts. Making a marijuana stock watchlist and researching these cannabis companies is a good way to find the best companies right now. Before investing in cannabis stocks there are a few important factors to consider. For one pot stocks are known to be some of the more volatile stocks in the market.
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For this reason, many investors trade them on a short-term basis especially the marijuana penny stocks. Penny stocks are any stocks trading under the $5 stock price. Before investing in cannabis stocks it’s important to always do your own due diligence on a company. Researching a company’s financials and press releases can help you find the best-performing companies. Additionally following how a stock behaves in the market can allow you to establish the best entry point for your investment. Let’s look at 2 top marijuana penny stocks for your list before 2022.
Marijuana Penny Stocks For Your 2022 Watchlist
- Columbia Care Inc. (OTC: CCHWF)
- 4Front Ventures Corp. (OTC: FFNTF)
Columbia Care Inc.
In the state of New York, Columbia Care Inc. is positioning for tremendous expansion. The company just acquired a 34-acre cultivation location on Long Island, giving it one of the largest cannabis footprints on the East Coast. Columbia Care now runs 130 locations in 18 US markets, including 99 dispensaries and 31 growing and manufacturing facilities. In October, the firm established its first site in Missouri, a Cannabis Dispensary. The business revealed this month that it has established its third gLeaf dispensary in Virginia. Columbia Care also announced in November that heavyweight champion Mike Tyson’s highly awaited Tyson 2.0 Cannabis brand will be coming to Colorado. The company announced a rebranding in the Florida market and its retail locations on December 8th. Cannabist’s new retail design and experience will be available soon.
Columbia Care reported a record quarterly revenue of $132 million in the third quarter of 2021, up 144% year over year. In general, the company reported a record quarterly Adjusted gross profit of $64.5 million, up 205% over the previous quarter. The company also generated a record Adjusted gross margin of 49% and record Adjusted EBITDA of $31 million, up 634% year over year. The firm raised its projection for 2021 to $470-$485 million in revenue and $85-$95 million in Adjusted EBITDA. The company gained state authority in September to rebrand its retail footprint across all its 14 Florida locations. Columbia Care, the first firm to manufacture extract vaporization devices in the UK, unveiled the UK’s biggest line of medical cannabis extract vaporizer pens on December 14th.
CCHWF Stock Performance
CCHWF stock closed on December 14th at $2.98 down 14.86% in the past month. Currently, the stock has a 52-week price range of $2.79-$7.89 and is down 50.74% year to date. According to analysts at CNN Business CCHWF stock has a 12-month median price target of $10.00 per share. In this case, this would represent an upside of 235.57% from its last trading price of $2.98.
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4Front Ventures Corp.
At the present time, 4Front Ventures is a major MSO and retailer in the United States that specializes in mass-produced, low-cost, high-quality branded cannabis goods. The company currently distributes a range of more than 25 cannabis products. 4Front operates dispensaries in Illinois, Massachusetts, California, Michigan, and Washington state, to name a few. In Illinois, 4Front just completed the first phase of a 558k sq. ft. cultivation and manufacturing plant. The acquisition is funded by Innovative Industrial Properties, Inc. (NYSE: IIPR), and construction is expected to be finished in Q2 2022.
4Front reported its Q3 2021 financial results with systemwide pro forma revenue of $33.1 million. This is an increase versus sales of $22.3 million in Q3 2020. As a result, the company delivered Q3 2021 Adjusted EBITDA of $7.5 million. this is an increase of 103% compared to Q3 2020. Revenue of $25.9 million was recorded under GAAP, an increase of 70% year over year and a decline of 4% from Q2 2021. In October the company acquired New England Cannabis Corporation a best-in-class cannabis operator in Massachusetts. The acquisition includes a 55,000 sq. foot cultivation facility and more than doubles the companies it flower producing in the state.
Words From The CEO
“In the third quarter, we reached several substantial operational milestones that we believe have set the table for our growth well through 2022 and beyond. While we experienced some regulatory delays in getting Commerce up and running, we are more confident than ever that we have the tools, facilities, and teams in place to meet our considerable growth expectations in the coming year.”
Leo Gontmakher, Chief Executive Officer of 4Front
FFNTF Stock Performance
FFNTF stock closed on December 14th at $1.04 up 6.11% for the trading day. The stock has a 52-week price range of $0.73-$1.98 and is up 14.99% year to date. According to analysts at CNN Business FFNTF stock has a median price target of $1.78 per share. This median estimate would represent an upside of 70.99% from its last trading price of $1.04.
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