Top Performing Penny Stocks in the Cannabis Industry: August 2023
As we enter the third week of August, investors interested in investigating the dynamic world of marijuana stocks will discover some exciting options. While established cannabis conglomerates continue to dominate the US cannabis industry, the penny stock sector is causing a stir. With the potential for large gains, these smaller players necessitate careful evaluation and risk management. Traders should brace themselves for wild volatility as well as potential losses.
Navigating the US Cannabis market: The US cannabis market continues to be an intriguing landscape, fuelled by altering regulations and public perceptions. As federal legalization gains traction, prominent players like Curaleaf Holdings and Green Thumb Industries remain frontrunners. However, the appeal of penny stocks, with their lower share prices and potential for rapid growth, entices investors. Before investing, do your homework on the company’s fundamentals, past records, and market trends.
Leveraging Technical Analysis for Short-Term Trading: Technical analysis emerges as a valuable tool for those eyeing short-term trades. Analyzing stock price patterns, trends, and trading volumes might help predict prospective price moves. Short-term trading requires discipline and an understanding of entry and exit points. It’s critical to stay up to date on the newest news and events in both the marijuana industry and the larger financial markets since these can have a considerable impact on your trading selections. Remember that making informed judgments and managing risk is critical when navigating the unpredictable seas of the marijuana stock market.
The world of marijuana stocks presents a mix of established players and enticing penny stocks. While established cannabis giants maintain their influence in the US market, penny stocks offer potential but come with increased risks. Utilizing technical analysis and staying informed about market trends are essential tools for short-term traders. As August unfolds, careful research, calculated decisions, and risk management will support successful ventures in the evolving marijuana stock landscape.
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Cannabis Penny Stocks to Keep an Eye On August 2023 Edition
- TerrAscend Corp. (OTC: TSNDF)
- Flora Growth Corp. (NASDAQ: FLGC)
- Lowell Farms Inc. (OTC: LOWLF)
TerrAscend Corp.
TerrAscend cultivates and distributes marijuana throughout the United States and Canada for medical and recreational reasons. With operations in Pennsylvania, New Jersey, and California, the company is a major cannabis grower in the United States. The company’s primary objectives are to manufacture and promote artisan cannabis goods, as well as hemp and cannabis-infused products. TerrAscend has created several products in Maryland under the Kind Tree brand. The Kind Tree brand’s existing product range, made in Maryland from 15 distinct flower varietals, will include vapes and half-gram pre-rolls.
Second Quarter 2023 Financial Highlights
- Net Revenue was $72.1 million, an increase of 3.9% sequentially and 12.7% year-over-year.
- Gross Profit Margin was 50.2%, compared to 48.8% in Q1 2023 and 37.5% in Q2 2022.
- GAAP Net loss from continuing operations was $12.9 million, compared to $19.2 million in Q1 2023 and net income of $16.9 million in Q2 2022.
- EBITDA from continuing operations1 was $6.5 million, compared to $6.1 million in Q1 2023 and $38.4 million in Q2 2022.
- Adjusted EBITDA from continuing operations1 was $12.8 million, compared to $12.2 million in Q1 2023 and $8.8 million in Q2 2022.
- Adjusted EBITDA Margin from continuing operations1 was 17.8%, compared to 17.6% in Q1 2023 and 13.8% in Q2 2022.
- Net cash provided by (used in) operating activities – continuing operations was $1.8 million compared to $10.5 million in Q1 2023 and ($14.9) million in Q2 2022.
- Cash and Cash Equivalents, including restricted cash, totaled $34.5 million as of June 30, 2023, of which $2.5 million was long-term restricted, compared to $33.5 million as of March 31, 2023.
Outlook for 2023
The Company is reiterating its outlook for Net Revenue and Adjusted EBITDA from continuing operations1 for 2023 to be at least $305 million and at least $58 million, respectively, representing year-over-year growth of 23% in Net Revenue and 49% in Adjusted EBITDA from continuing operations.
TSNDF Stock Performance
TSNDF stock closed at $1.73 on August 18th, up 4.22% in the past three months of trading. The stock has a 52-week price range of $1.00-$2.50 and is up 1.17% in the last year. According to analysts at CNN Business, TSNDF stock has a 12-month average price target of $2.18 per share. In this case, this would represent an upside of 26.00% from its last trading price of $1.73.
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Flora Growth Corp.
Flora Growth Corp. is a global cannabis company dedicated to spreading cannabis’s advantages to people worldwide. By setting the bar for top-notch cultivation and manufacturing, thoughtful brand development, and thorough research and development of medical-grade cannabis products that adhere to the strictest standards of quality, safety, and efficacy, our commitment is to establish, control, and connect the global cannabis supply chain. In June, the corporation conducted a one-for-twenty reverse stock split.
Flora Growth Corp., a global consumer-packaged goods and pharmaceutical distributor with 20,000+ points of distribution serving all 50 states and 28 countries, has formed a relationship with TruHC Pharma GmbH (“TruHC”), a medical cannabis expert based in Hamburg, Germany. TruHC is an EU-GDP-certified importer, distributor, and manufacturer of medical cannabis, and it runs a production facility with a cutting-edge cannabis laboratory, for which an EU-GMP license is expected by the end of September.
First Quarter 2023 Financial Results
- Flora generated $20.1 million in revenue in Q1 2023, a 307% increase year-over-year.
- Gross profit for Q1 2023 increased 105% year-over-year, to $5.5 million.
- Posting a net loss of $3.9 million for Q1 2023 (decreased from Q1 2022). New leadership plans to reduce expenses further and focus on organic revenue growth.
FLGC Stock Performance
FLGC stock closed at $2.11 on August 18th and has a 52-week price range of $0.17-$25.40. In this case, CNN Business analysts gave FLGC stock a median price target of $20 per share. This would represent an upside of 847.87% from its last trading price of $2.11.
[Read More] Top US Marijuana Stocks to Watch in August 2023
Lowell Farms Inc.
Lowell Farms Inc., a well-known California cannabis producer, is rapidly expanding its market share. Among the organization’s major goals are the creation of good cannabis brands, artisan craft cannabis farming, and cutting-edge production technologies. The company and Ascend Wellness Holdings have a license arrangement. The two companies will work together to bring the Lowell Smokes brand to medical marijuana retailers in Massachusetts and Illinois. In November, Ascend and Lowell formally agreed to export Lowell Smokes to Michigan. According to the company, the well-known Lowell Smokes pre-roll bundles will also be available in Illinois.
Second Quarter Financial Highlights
Revenues:
- Net revenue generated for Q2 2023 decreased 47% to $7.0 million, as compared to $13.2 million for Q2 2022. Net revenue was $7.5 million for Q1 2023, a decrease of 7%.
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- CPG revenue decreased by 40% compared to Q2 2022 and decreased by 5% compared to Q1 2023.
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- Bulk revenue from self-grown wholesale products decreased by 34% compared to Q2 2022 and decreased by 11% compared to Q1 2023. In Q2 2023, there was a 37% decrease in volume and a 44% increase in realized price per pound compared to Q1 2023.
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- LFS revenue decreased by 95% compared to Q2 2022 and decreased by 18% compared to Q1 2023.
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- Out-of-state licensing revenue decreased by 14% compared to Q2 2022 and increased by 7% compared to Q1 2023.
Gross Margin:
- The gross margin for Q2 2023 was negative 4.8%, representing a gross loss of negative $0.3 million, compared to a gross margin of positive 1.8% for Q1 2023, which represented a gross profit of $0.1 million.
Operating Loss:
- Operating loss was $2.6 million compared to an operating loss of $3.0 million in Q2 2022, a 12% improvement. Operating loss was $2.3 million in Q1 2023.
Net Income:
- Net loss was $0.1 million compared to a net loss of $4.6 million in Q2 2022, and a net loss of $4.0 million for Q1 2023.
Adjusted EBITDA:
- Adjusted EBITDA was negative $1.2 million compared to adjusted EBITDA of negative $1.1 million in Q2 2022 and adjusted EBITDA of negative $1.1 million in Q1 2023. Adjusted EBITDA is a non-GAAP financial measure. See “Use of Non-GAAP Financial Information” below for further information and a detailed reconciliation to Net Loss, the closest comparable GAAP measure.
LOWLF Stock Performance
The shares of LOWLF closed at $0.0281 on August 18th, down 9.35% in the last three months of trading. The stock is now trading in a 52-week price range of $0.026-$0.2550, down 85.47% in the last year.
Exploring the Best Marijuana Penny Stocks
In the ever-evolving realm of investment, marijuana stocks, cannabis stocks, and penny stocks continue to intrigue both seasoned and novice investors. As the cannabis industry marches forward, August 2023 showcases a landscape ripe with opportunities for those seeking growth potential. By meticulously analyzing trends and practicing prudent risk management, investors can harness the power of marijuana penny stocks, blending the allure of high rewards with the necessity of informed decisions.
In this dynamic environment, staying attuned to shifts in marijuana stocks, cannabis stocks, and penny stocks is paramount. As August unfolds, diligent monitoring and comprehensive research will empower investors to make strategic choices aligned with their financial goals. Whether one’s eye is on established cannabis market leaders or the exciting potential of penny stocks, a fusion of industry knowledge, strategic analysis, and adaptive thinking will guide investors toward seizing this unique market’s promising prospects.
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