Markets Affect The Cannabis Sector
At the present time, the cannabis sector has been caught in the same downward trend as the tech industry. Both sectors saw substantial losses during trading on March 3rd. Recently most marijuana stocks have been showing volatility in the market. Actually, this volatility has many investors cautious when it comes to investing in cannabis stocks for the long term.
Instead, more investors are using the market fluctuation for short-term gains. Although investing in the cannabis sector has its risk recent drops in market value could make them more appealing to investors. So, the question is which marijuana stocks will have the most value in March? In the U.S. cannabis companies have shown substantial growth in the market. Whether through acquisitions and mergers or new cannabis dispensaries the industry is growing rapidly.
More states are legalizing adult recreational use and medicinal cannabis to generate tax revenue. This has already proven successful in states like California and Colorado who have established cannabis markets. As the U.S. grows on a state level so does the chances of seeing federal reform in the near future. In reality, this has been a major catalyst for market gains for the cannabis sector since the presidential election.
Previous Gains For Cannabis Stocks
In general, for five consecutive months, we have seen the cannabis sector produce substantial gains for investors. This has brought many new investors into the cannabis market without knowledge of the sector. For one top marijuana stocks are well known for being volatile in the market. This is important to keep in mind during downturns like the one the sector is currently experiencing.
But this recent downturn could be an opportunity for new investors to find marijuana stocks at lower price points. With many possibilities for the cannabis industry to continue to grow in 2021, it could be time to add the best marijuana stocks to buy to your watchlist. As March begins to show a downtrend in the market pot stocks has become much more volatile. This downtrend has been a result of recent market sentiment and not directly because of the cannabis market.
Actually, the cannabis industry has been growing rapidly across the U.S., and cannabis companies are showing revenue growth because of it. In March many U.S. cannabis companies are reporting earnings. Although so far, results have been strong for top cannabis stocks like Innovative Industrial Properties, Inc. (NYSE: IIPR) which generated total revenue of $116.9 million for 2020. In fact, this represents an increase of 162% over 2019. Although these results seem strong, they missed analysts’ expectations. But this shows strength in the current cannabis market.
Read More
- Are These Marijuana Stocks To Buy In March?
- 2 Marijuana Stocks To Watch As Trading In March Gets Underway
Marijuana Stocks To Watch:
- Acreage Holdings, Inc. (OTC: ACRHF)
- Columbia Care Inc. (OTC: CCHWF)
Acreage Holdings, Inc.
Acreage Holdings, Inc. is a vertically integrated multi-state operator of cannabis through retailing facilities in the U.S. Currently, the company’s national retail store brand The Botanist has 14 operational dispensaries. Additionally, Acreage has 18 other locations under other names across 13 states. Acreage also has an implemented arrangement with Canopy Growth Corporation (NASDAQ: CGC) that could help Canopy enter the U.S. cannabis market when federal policy permits it. In 2021 the partnership will have Acreage marketing Canopy Growth’s diverse THC-beverage portfolio in the U.S. In fact, Acreage should be launching the beverages in the U.S. this summer.
On February 25th Acreage announced RWB Florida LLC will purchase all of the stock of Acreage Florida, Inc. (“Acreage Florida”). In detail, Red White & Bloom Brands Inc. will also acquire certain owned and leased real estate assets used in Acreage Florida’s operations. This includes a 113,000 square feet facility for cultivation and processing situated on 15 acres of land and 16 operating dispensaries.
ACRHF stock is up 122.58% year to date with a high $9.00 in February. Currently ACRHF stock is trading at $6.90 up 2.19% on March 4th close to the open. According to analysts at Stock Invest ACRHF, the stock is expected to rise by 102.63% during the next 3 months. For this reason, ACRHF stock is a top marijuana stock to watch in March.
[Read More] Top Cannabis Stocks For Your Watchlist First Week In March
Columbia Care Inc.
Columbia Care Inc. is a multi-state operator and provider of medical and adult-use cannabis products for the U.S. and E.U. The company holds licenses in 18 U.S. jurisdictions and operates 108 facilities which include 81 dispensaries and 27 cultivation and manufacturing facilities. Earlier in February Columbia Care was awarded five medical dispensary permits in West Virginia. With this purchase, the company became one of 10 that currently holds cannabis processing and cultivation licenses in the state.
On March 3rd Columbia Care announced record preliminary Q4 full year 2020 results. Specifically, the company’s full-year and 2020 results exceed consensus estimates with Q4 proforma revenue of $76 million. Columbia Care CEO Nicholas Vita said,” Our record-breaking fourth quarter and full-year performance was driven by continued revenue growth and margin expansion. We generated robust sequential and year-over-year increases in Combined Revenue, Gross Profit and Adjusted EBITDA.”
CCHWF stock is up 13.91% year to date with a high in February of $7.89. Currently trading at $6.90 on March 4th the stock is trading flat so far to start the day. According to analysts at MarketBeat CCHWF stock has a consensus price target of $11.33. This would be a 64.4% upside from current prices. For this reason, CCHWF stock is a top cannabis stock to watch in 2021.
[Read More] Best Marijuana Stocks To Buy Right Now? 2 Pot Stocks With Potential Gains
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