Navigating the Mid-November Landscape with Top US Cannabis Stocks
Marijuana stocks have become an interesting sector in the ever-changing U.S. stock market, providing investors with notable returns over the last half-year. Companies in the cannabis sector in the United States have grown remarkably, propelled by the wave of states legalizing cannabis. Current data confirms the industry’s positive trend, as the market is seeing an increase in investor interest and income. As the cannabis market develops, astute investors are using technical analysis more frequently and putting strong risk management plans in place to help them deal with the ups and downs of this emerging sector.
In the midst of the continuous growth, traders are debating whether to take a long-term investing strategy in 2023 or focus on short-term profits. A complex maze has been placed before investors by combining economic, public opinion, and regulatory trends. For anyone looking to succeed in the volatile and high-stakes world of U.S. marijuana stocks, learning the art of technical analysis and applying good risk management strategies are essential. Overall, this piece explores the complexities of the market, offering information on recent gains, the changing cannabis industry environment, and wise trading and long-term investing methods for the future year.
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Green Gains: Hot Picks for Mid-November in the U.S. Cannabis Sector
- Green Thumb Industries Inc. (OTC: GTBIF)
- Glass House Brands Inc. (OTC: GLASF)
Green Thumb Industries Inc.
Green Thumb Industries Inc. is one of the largest players in the cannabis consumer packaged goods (CPG) business in the United States. There are currently 83 Green Thumb shops spread throughout 14 states. With more to come, GTI will soon have 111 retail licenses. A Cookies restaurant will open on the Las Vegas Strip in 2021, per the terms of the initial agreement between GTI and the privately held Cookies Brand. Following its successful acquisition of Dharma Pharmaceuticals, Green Thumb has announced the launch of its medical marijuana enterprise in Virginia. The company is currently functioning in Minnesota after acquiring Leafline Industries. The company started selling cannabis for adult use on July 1st and launched four locations in Maryland.
Highlights for the third quarter and nine months ended September 30, 2023
- The third-quarter revenue of $275 million increased 9% sequentially.
- GAAP net income for the third quarter is $11 million or $0.05 per basic and diluted share.
- Adjusted EBITDA for the third quarter was $83 million or 30% of revenue.
- The third-quarter cash flow from operations was $61 million, bringing the year-to-date total to $154 million.
- Cash at quarter end totaled $137 million.
- Share repurchases of $25 million during the quarter, over 1% of shares outstanding.
- Adult-use cannabis sales commenced at four RISE Dispensaries in Maryland on July 1.
- RISE Dispensaries opened in Las Vegas, Nevada, and Fruitland Park, Florida.
- Additionally, after quarter end, the Company opened RISE Dispensaries in Brandon and Sun City Center, Florida, and announced the opening of a RISE Dispensary in Clearwater, Florida, on November 10.
GTBIF Stock Performance
On November 10th, GTBIF shares finished at $9.79, up 7.58% in the last five days of trading. The stock has a 52-week price range of $6.42-$16.50 and is up 13.31% year to date. According to analysts at CNN Business, GTBIF stock has a 12-month average price target of $14.18 per share. In this case, this would represent an increase of 44.85% from its last trading price of $9.20.
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Glass House Brands Inc.
Glass House, one of the fastest-growing vertically integrated cannabis companies in the US, focuses on the California market and creates iconic brands that appeal to a wide age range of consumers. Co-founders Kyle Kazan, the CEO and chairman, and board member Graham Farrar advocated for respect for people, the environment, and the community from the beginning. Overall, this regard supports the company’s endeavors in greenhouse farming, production, brand promotion, and retailing. Glass House is dedicated to fulfilling its vision of producing superior cannabis products in an environmentally friendly manner for the benefit of everybody. Glass House Farms, PLUS Products, Allswell, Forbidden Flowers, and Mama Sue Wellness are all under the umbrella of Glass House. In addition, the company will release its third quarter 2023 results on November 13th after the market close.
Second Quarter 2023 Highlights
(Unless otherwise stated, all results and dollar references are in U.S. dollars)
- Net Sales of $44.7 million increased 171% from $16.5 million in Q2 2022 and up 54% sequentially from $29.0 million in Q1 2023;
- Gross Profit was $24.4 million compared to $0.3 million in Q2 2022 and $12.0 million in Q1 2023;
- Gross Margin was 55%, compared to 2% in Q2 2022 and 41% in Q1 2023;
- Adjusted EBITDA1 was $9.5 million, compared to $(9.8) million in Q2 2022 and $(0.1) million in Q1 2023;
- Cost per Equivalent Dry Pound of Production3 was $139 a decrease of 12% compared to the same period last year and down 29% sequentially versus Q1 2023;
- Equivalent Dry Pound Production2 was 103,336 pounds, up 311% year-over-year and up 115% sequentially;
- Cash balance was $22.7 million at quarter-end, up 39% from Q1 2023 quarter end.
Q2 2023 Outlook
Words From The CEO
“The second quarter of 2023 was the best in our history. We achieved record levels of operating cash flow, exceeded Q2 guidance across several operating metrics and marked our first quarter of positive adjusted EBITDA1.”
“In Q2 2023, we saw our biomass revenues and pounds sold more than quadruple versus the previous year. Revenues from our retail dispensaries doubled to $10 million year-over-year, due to growth from acquisitions. Consolidated gross margin surpassed 50% and cultivation cost per pound3 fell by 12% versus last year. Finally, Adjusted EBITDA1 flipped to a positive $9.5 million compared to negative $9.8 million a year ago.”
Kyle Kazan, Co-Founder, Chairman and CEO of Glass House.
GLASF Stock Performance
GLASF stock ended at $4.48 on November 10th, up 4.43% in the last five days of trading. The stock has been trading in a 52-week range of $1.78-$5.10. GLASF stock is up 134.55% year to date. According to analysts at Tip Ranks, GLASF stock has a 12-month average price target of $6.00 per share. In this case, this would represent an increase of 33.93% from its last trading price of $4.48.
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Must-See U.S. Marijuana Stocks This Month
As a result, a systematic approach to capitalizing on possible gains and a deep awareness of industry dynamics are crucial when navigating the U.S. marijuana stock market in mid-November. The cannabis industry’s recent performance highlights its adaptability and potential for expansion, driven by shifting laws and a growing customer base. It is crucial to use technical analysis and strong risk management techniques in 2023 when investors consider making short-term moves or taking a long-term position. The cannabis sector in the United States is constantly changing, but there are plenty of chances for those who keep up with the latest developments, use caution when analyzing market patterns, and have a sophisticated approach to investing. Whether seizing short-term trading opportunities or positioning for long-term growth, astute investors in the U.S. marijuana market stand to reap the rewards of a burgeoning industry on the cusp of transformative change.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
