Top Marijuana Stocks To Watch Next Month
Many marijuana stocks are still down in the market. The growing concern of when federal cannabis reform will pass has led to a drop. As well as volatile and inconsistent price movement. The thing about it is when fewer states were legalizing cannabis state-level legislation was the focus. So when a state would legalize marijuana it had a positive impact on the sector. But as things become more regulated and more states started to further legalize cannabis the marijuana stocks didn’t react the same.
The reason was that the U.S. cannabis industry was becoming more regulated on a state level. So from this the bigger priority once a market where were. set up was enacted federal reform. Right now even though more than half of America has legalized marijuana it’s still federally illegal. Many feel that once cannabis prohibition comes to an end on that day it may trigger a run for cannabis stocks.
Now even though this is not set in stone history has shown positive news on the matter increases trading. Once federal reform is over it will allow for many new bridges to be built that were once illegal. Some marijuana stock investors feel that federal reform will play a big part in helping to improve Canada’s marijuana industry.
Marijuana Stocks To Watch As The Industry Is Still Developing
Overall now is another time to find top marijuana stocks to buy. Especially before any significant upward trading begins. This is what is going on among those who are watching the market to take advantage of this drop. The cannabis industry overall is flourishing and succeeding on many levels. Even with the majority of the sector being down. This continued success outside of the market is bringing in more potential investors back in. Like always just make sure you do your homework before executing on any investment. The companies below are said to be ones that many people view as top marijuana stocks to watch.
Top Marijuana Stocks To Watch In 2021
Sundial Growers Inc.
Sundial Growers Inc. . engages in the production and marketing of cannabis products for the adult-use market in Canada. It produces and distributes inhalable products, such as flower, pre-rolls, and vapes. The company offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands. Earlier in November, the company released its Q3 2021 earnings. At this time company saw a net earning of $11.3 million. These figures are in comparison to a $71.4 million loss in Q3 of 2020.
Also, the company had an Adjusted EBITDA of $10.5 million for the third quarter of 2021. Which is compared to an adjusted EBITDA loss of $4.4 million in the third quarter of 2020. Another company update that was announced at the same time is a share purchase program. The board of directors has approved a new share repurchase program. Which authorizes the Company to repurchase up to C$100 million of its outstanding common shares. This will happen from time to time at prevailing market prices. Which will enable Sundial to opportunistically return value to shareholders.
Red White & Bloom Brands Inc.
Red White & Bloom Brands Inc. engages in the cultivation and retail of cannabis products primarily in Michigan, Illinois, Massachusetts, Arizona, California, and Florida. In the company’s most recent news it has announced its Q3 financial results. During Q3 2021 revenue for the company reached $11.8 million. This is in comparison to $6.1 million in Q3 2020, an increase of 93%. As well the company also suffered a net loss of $5.5 million compared to $9.5 million in Q3 2020.
The change in net loss was primarily a result of the revaluation of the Company’s Call/Put options. As well as rightsizing compensation and achieving economies of scale. Also Red White & Bloom Brands EBITDA was $5.9 million for Q3 compared to an EBITDA loss of $5.8 million in Q3 2020. This made for a gain of $11.9 million.
Currently, the majority of revenue is derived from sales of cannabis finished products. Which is done through third-party wholesaling to retailers. RWB will be vertically integrated upon the closing of the pending acquisition of the Michigan investee. RWB anticipates this will leverage cost-sharing and other economies of scale to further improve margin.
Words From The CFO
Chris Ecken, RWB CFO, stated, “RWB is being very strategic in pursuing vertical integration only when there is value to be added. We aim to be asset light and brand rich. Our strategy is to support the brands in the most profitable way. We have been putting the teams in place to support this strategy in each state where we operate. As RWB integrates vertically in multiple states, we anticipate that our margins will dramatically increase, enabling us to move toward profitability.”
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