Investing In Marijuana Penny Stocks For 2021
As May comes to a close most leading marijuana stocks are showing some potential upside for the month. After a few months of market declines for the cannabis sector, it could be time to rebound and begin moving higher. One area of the cannabis sector that has seen the most momentum in 2021 is marijuana penny stocks. In general penny stocks are any stocks that are trading under the $5 share price.
Given that these stocks are typically known for being some of the more volatile securities on the market they are considered a high-risk high-reward investment. In many cases, traders prefer to hold these penny stocks on a short-term basis using day trading and swing trading methods. At the present time with the cannabis sector recovering pot penny stocks could be at decent levels to look for an entry point for a position.
But before investing it’s important to always do your own due diligence into a company to get familiar with the company you’re investing in. Because of the market volatility, it’s also good to study penny stocks trading patterns to get a better idea of what a good entry point for your investment will be. At the beginning of the year some of the best penny stocks to buy delivered significant gains for investors until almost mid-February.
Finding The Best Returns In Cannabis Penny Stocks
As May comes to an end top cannabis penny stocks that are trading lower could produce future gains from current levels. Currently in the US traders are waiting to see if the federal government introduces a cannabis reform and legalization bill that could continue to support industry growth. In the event this is passed in 2021 it could be a tremendous catalyst for top marijuana penny stocks to watch.
[Read More] 2 Marijuana Penny Stocks To Add To Your Watchlist Before June
In general, putting some of these marijuana penny stocks on your watchlist in June could help you achieve short-term gains as the cannabis sector climbs in the market. With this in mind, let’s take a closer look at 2 of the best marijuana stocks to watch that are trading under $1 per share.
Marijuana Penny Stocks To Watch
- TILT Holdings Inc. (OTC: TLLTF)
- MedMen Enterprises Inc. (OTC: MMNFF)
TILT Holdings Inc.
TILT Holdings Inc. provides business solutions to cannabis companies building their brand on a global platform. At the present time, the company has a large portfolio of companies that provide technology, hardware, cultivation, and production for other top cannabis companies. In addition, TILT supplies the U.S. and European medical cannabis markets with medical-grade inhalation devices. Primarily one of the company’s main focuses is in the area of the U.S. medical cannabis industry. In fact, this area is expected to grow by 20% on an annual basis.
On May 25th TILT released its first-quarter 2021 financials with a record Q1 revenue of $46.8 million. This is up 15% year over year. Additionally, the company saw record adjusted EBITDA of $6.2 million up 28% year over year. Specifically, TILT generated record accessory orders for the first quarter of 2021. Also, the company set record flower sales for March in Pennsylvania. In particular, the company had cultivation yields up 16% in the last six months. For 2021 TILT reaffirmed its guidance of revenue between $205-$210 million and adjusted EBITDA of $30-$32 million.
TLLTF stock is trading at $0.5305 on May 28th around 10:40 EST and is up 86.06% year to date. In February TLLTF stock hit a 52-week high of $0.75 and is up 17.30% in the last five trading days. According to analysts at Market Beat TLLTF stock has a consensus price target of $1.25 per share. This forecast represents an increase of 131.7% from current levels. For this reason, TLLTF stock could be one of the best marijuana penny stocks to buy in June.
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MedMen Enterprises Inc.
In the US MedMen Enterprises Inc. is a cannabis retailer with locations in California, Nevada, Illinois, and Florida. At the present time, the company is known to have an extensive selection of high-quality products. Primarily this includes its popular products like MedMen-owned brands LuxLyte, and MedMen Red. In May MedMen reported its third-quarter fiscal 2021 results with third-quarter net revenue of $31.7 million up 2.8% sequentially. The company saw total revenue across MedMen’s operations of $37.8 million an increase of $8.2% sequentially.
Specifically, the company saw a net loss of $9.7 million in the third quarter. In comparison to a net loss of $68.9 million in the previous quarter, it is coming closer to profitability. Currently, MedMen is down significantly year over year with third-quarter revenue of $32 million. To put in perspective in Q3 of 2020 the company saw revenue of $44.1 million. In Florida, the company recently opened a new prime location in South Beach Miami, and could continue expanding in 2021.
MMNFF stock is trading at $0.2808 on May 28th and is up 112.10% year to date. In February MMNFF stock reached a high of $1.47 per share and is down 20.94% in the last month. According to analysts, a Stock Invests MMNFF stock is expected to decline by 23.14% during the next 3 months. With this in mind, MMNFF stock could be a marijuana stock under $1 to add to your watchlist for June.
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