Investing Insights into Mid-November’s Cannabis Market
As we enter mid-November, the landscape of the cannabis industry and top marijuana stocks in the United States continues to evolve, presenting investors with a dynamic blend of opportunities and challenges. Driven by increasing legalization and changing attitudes, the US cannabis market has become a focal point for both short-term traders and long-term investors.
US Cannabis Industry Overview
Statistically, the US cannabis industry has witnessed a monumental shift, with legal sales reaching a staggering $20 billion in 2022. As a result, projections indicate that the market is poised for exponential growth, with estimates reaching $41 billion by 2025. As more states embrace legalization and federal regulations inch towards reform, the cannabis sector stands at the cusp of transformative expansion.
Long-Term Investment Strategies
On the flip side, long-term investors should adopt a patient and strategic approach. Identifying fundamentally strong companies with sustainable growth prospects is imperative. The long-term success of a marijuana stock hinges on factors such as regulatory developments, market expansion, and the company’s ability to establish a robust market presence.
Core Trading Positions
Establishing core trading positions involves a balanced portfolio, strategically diversified to mitigate risks. Consider allocating investments across different segments of the cannabis industry, such as cultivation, retail, and ancillary services. This approach can help buffer against sector-specific challenges and capitalize on diverse revenue streams.
Risk Management and Stop Loss
Regardless of the trading horizon, effective risk management is non-negotiable. Setting clear stop-loss orders helps protect investments from sudden downturns. Overall, given the inherent volatility of marijuana stocks, having predefined exit points ensures that losses are controlled, preserving capital for future opportunities.
Understanding the nuances of short-term trading and long-term investing is paramount as we navigate the green wave of cannabis stocks in mid-November. With the US cannabis industry poised for unprecedented growth, strategic decision-making, and disciplined risk management will guide investors through this flourishing market.
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Top Marijuana Stocks to Follow Mid-November 2023
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Cansortium Inc. (OTC: CNTMF)
- Gold Flora Corporation (OTC: GRAM)
Curaleaf Holdings, Inc.
Renowned worldwide distributor of cannabis consumer goods, Curaleaf Holdings, Inc., is dedicated to improving people’s lives by cultivating, sharing, and honoring the plant’s potential. With a reputation for quality, knowledge, and reliability, this rapidly expanding cannabis company and its brands—Curaleaf, Select, and Grassroots—offer the best service, selection, and accessibility for medicinal and adult-use cannabis. Presently, Curaleaf runs 152 dispensaries across 19 states and employs over 5,500 people nationally. In general, the most significant vertically integrated cannabis business in Europe is Curaleaf International, which has a specialized supply and distribution network that covers the whole continent. The company combines Modern science and research with cutting-edge manufacturing, extraction, and cultivation methods.
Third Quarter 2023 Financial Highlights
- Net Revenue of $333.2 million, excluding $3.5 million from discontinued operations, a year-over-year increase of 2% compared to Q3 2022 revenue of $325.8 million. Sequentially, net revenue declined less than 1%
- Gross profit of $150.1 million and gross margin of 45%
- Adjusted gross profit(1) of $152.2 million, resulting in adjusted gross margin of 46%
- Net loss attributable to Curaleaf Holdings, Inc., including discontinued operations, of $92.3 million or net loss per share of $0.13
- Adjusted net loss from continuing operations attributable to Curaleaf Holdings, Inc.(1) of $70.8 million or adjusted net loss per share(1) of $0.10
- Adjusted EBITDA(1) of $75.3 million or 23% of revenue
- Exited direct operations in Michigan and Kentucky, resulting in a $22 million non-cash impairment charge and $3 million in adjusted EBITDA accretion
- Cash at quarter end totaled $118.1 million
- Free cash flow from continuing operations(1) of $33.4 million
CURLF Stock Performance
On November 10th, CURLF shares closed at $3.28, up 6.49% in the past five days of trading. In this case, the stock is trading in a 52-week range of $2.19-$7.90, down 23.67% year to date.
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Cansortium Inc.
The goal of Florida-based cannabis manufacturer Cansortium Inc. is to produce top-notch cannabis. As of right now, the company operates in Pennsylvania, Michigan, and Texas. Cansortium expanded into Florida and Pennsylvania with the help of a $90 million loan and equity arrangement negotiated the previous year. Fruitland Park, Florida, is home to a dispensary, according to the business. In general, with thirty locations, Cansortium is one of the biggest cannabis networks in Florida. Among the goods sold under Fluent’s Fluent brand are lotions, full-spectrum extracts, cartridges, and other luxury consumables. The company will report its third quarter 2023 results on November 29 after the market closes.
Q2 2023 Financial Highlights (vs. Q2 2022)
- Revenue increased 9% to $24.4 million compared to $22.4 million.
- Florida revenue increased 11% to $20.1 million compared to $18.2 million.
- Adjusted gross profit1 increased 5% to $15.8 million or 64.6% of revenue, compared to $15.0 million or 67.0% of revenue.
- Adjusted EBITDA was $8.6 million compared to $10.2 million, with the decrease primarily driven by increased SG&A related to new store openings that are still ramping.
- Cash flow from operations for the three months ended June 30, 2023, was $4.8 million compared to $5.8 million in the prior year.
- On June 30, 2023, the Company had approximately $8.8 million of cash and cash equivalents and $59.3 million of total debt, with approximately 298 million shares outstanding.
CNTMF Stock Performance
On November 10th, CNTMF stock finished at $0.0960, down 8.57% in the past week of trading. In this case, the stock is now trading in a 52-week price range of $0.058-$0.2050 and is down 14.13 percent year to date.
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Gold Flora Corporation
Gold Flora Corporation is a female-led, vertically integrated cannabis leader operating eight cannabis brands, fifteen retail locations, and other businesses across California. Stately Distribution is one such company. In general, its retail enterprises include Airfield Supply Company, Varda, Caliva, Coastal, Calma, King’s Crew, and Higher Level.
Across three buildings, Gold Flora Corporation’s 72,000-square-foot indoor growing canopy is located at Desert Hot Springs. The business can expand by adding roughly 240,000 square feet to the previously approved additional acreage. This unique opportunity may be timed to satisfy market demand, which is crucial. The 200,000 square foot modern campus is home to the company’s extraction, manufacturing, and Stately Distribution operations. The product is protected during its entire journey through the company’s pipeline thanks to the concentrated location, which provides optimum logistical and security benefits.
Through hubs spread around the state, the company distributes a number of well-known brands, including its premium lines of Gold Flora, Monogram, Caliva, Mirayo by Santana, Cruisers, Roll Bleezy, Sword & Stoned, Aviation Cannabis, and Jetfuel Cannabis. In addition, an increasing number of external firms are reaching out to the company in search of reliable input sources and established channels for distribution.
GRAM Stock Performance
GRAM stock closed at $0.1060 on November 10th, down 8.62% in the last five days of trading. In this case, the stock has a 52-week price range of $0.005-$0.36 and is down 27.40% year to date.
Cannabis Stocks to Keep on Your Radar
In summary, the cannabis market is full of possibilities in mid-November, providing investors with a variety of options for both immediate profit and long-term expansion. As the market grows, savvy investors will prosper by remaining knowledgeable, embracing strategic variety, and exercising prudence while navigating the constantly shifting regulatory environment. Whether your goal is to establish a solid portfolio for the future or chase rapid profits, the secret is to be aware of market dynamics, comprehend the particular difficulties facing the cannabis industry, and act on well-thought-out decisions prioritizing disciplined risk management. November presents itself as a critical month for individuals prepared to investigate the thriving prospects found in the ever-evolving realm of top marijuana stocks, especially during this green wave.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
