Investing In The Cannabis Market In 2021
For new traders, there are many different ways to invest in the cannabis industry in 2021. One area that has seen significant gains this year is marijuana penny stocks to invest in. After a stellar start in January and the beginning of February, most leading cannabis stocks have seen a substantial drop in market value. In April this downtrend has continued putting some of the best cannabis stocks to buy at lower prices for a future bounce.
Because back in February top pot stocks gave investors a peek at the possibilities for the cannabis sector this could be considered a decent loading zone. Although top marijuana penny stocks are known for the most volatility, they have produced the most gains in the cannabis sector in 2021 so far. In some cases, the best cannabis penny stocks have seen triple-digit percentage gains in the first quarter of 2021.
Although April has these top pot stocks sliding downward in the market federal cannabis banking reform could be a catalyst for some upside in the future. With this in mind is it time to start a position in top marijuana penny stocks to watch? Because of the lower price point, investors are able to leverage a larger position with less capital. But for new traders, one thing to keep in mind is the fact this is a high-risk high reward area of the market.
Investing As A New Trader
On account of the risk of investing traders should always do their own due diligence before making an investment. This requires research into a company’s financials and doing a market analysis on the marijuana stock. Understanding how a company is performing and how the stock is moving in the market is key to a good investment. Currently, many investors prefer investing in marijuana penny stocks for short-term plays in the market.
For the purpose of doing some deeper research into some of the top marijuana penny stocks to add to your watchlist, we can look into some cannabis companies. As cannabis stocks continue to see a decline in the market an opportunity to start new positions for future gains could be in the making. With this in mind, let’s take a look at 2 of the top marijuana penny stocks to watch right now.
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Marijuana Stocks To Watch:
Lowell Farms Inc
Formerly known as Indus Holdings, Lowell Farms Inc, just completed the corporate name change in March. This comes after the acquisition of Lowell Farms; the company is now planning a new strategy for the future. In short Lowell, Farms is a California-based cannabis company with advanced production capabilities to support a seed-to-sale supply chain. Currently, Lowell grows artisan craft cannabis and has a portfolio of award-winning licensed brands.
In March Lowell announced it named Bryan Dunmire to the position of Chief Product Officer. Specifically, Mr. Dunmire will oversee the health and growth of the company’s brand portfolio focusing on innovation and impact in the cannabis industry. On April 14th Lowell announced a strategic licensing agreement with Ascend Wellness Holdings. In detail, the two companies are bringing the Lowell Smokes brand to dispensary locations in Massachusetts and Illinois. To elaborate the two are bringing the west coast cannabis brand out of California for the first time. And the Massachusetts and Illinois markets both saw cannabis sales of more than $1 billion.
LOWLF stock is up 26.61% year to date with a high of $2.149 in February. Closing on April 19th at $1.42 LOWLF stocks is down 8.06% in the last 30 days. According to analysts at Wallet Investor LOWLF stock has a one-year forecast price target of $2.642 per share. In essence, this would be an 86.05% gain from current levels. With this in mind, LOWLF stock is a top marijuana penny stock to watch this week in April.
Fire & Flower Holdings Corp.
Primarily in Canada Fire & Flower Holdings Corp. is an adult-use cannabis retailer focusing on the Canadian market and international expansions. At the present time, the company provides the best-in-class retailing and its HifyreTM digital platform connects consumers with cannabis products. Earlier this year Fire & Flower made an entry into the U.S. cannabis market through a strategic licensing partnership with an American cannabis company. In detail, the licensing partnership and acquisition option with American Acres gives Fire & Flower entry into the high growth California, Arizona, and Nevada markets.
Also, in 2021 Fire & Flower subsidiary Hifyre entered into an agreement with leading U.S. analytics company BDSA. As a result, Hifyre IQ will become available in the U.S. cannabis market for cannabis consumers. Additionally, Fire & Flower has been expanding its free same-day delivery in Ontario, Canada growing its presence in the Canadian market. In observance of 4/20, the company has created an original piece of digital art using NFT technology.
FFLWF stock is up 28.56% year to date with a high of $1.20 in February. With a close of $0.8481, the FFLWF stock has dropped 16.74% in the past month. According to analysts at Tip Ranks FFLWF stock has a 12-month price target of $1.40 per share. This would be a 64.76% gain from its current price point. For this reason, FFLWF stock is a top cannabis penny stock to watch in April.