Penny Pot Stocks with Potential: October 2023 Picks

High-Risk, High-Reward: Top Marijuana Penny Stocks for October

The US cannabis market is changing surprisingly as we approach October 2023. As more states legalize marijuana for medical and recreational purposes, the market has become a hotspot for investors looking for possibilities in this developing industry. Whether you’re a long-term investor or interested in short-term trading, it’s imperative to keep a close eye on the top marijuana stocks that are making waves in this dynamic market, especially in the space of marijuana penny stocks. Trading professionals use technical indicators and strict risk management techniques to navigate this quickly changing market and profit from these companies’ extreme volatility.

The US cannabis market is expanding at a never-before-seen rate, propelled by rising acceptance and state-level legalization. With several states attempting to decriminalize or regulate marijuana usage, the market opportunity is enormous. Statistics show that this pattern is likely to persist, and analysts anticipate significant increases in cannabis companies’ revenues and market capitalization.

Short-term traders are discovering chances in marijuana penny stocks, leveraging their potential for fast price swings in this emerging industry. To properly navigate these waters, you must have a solid grasp of technical indicators and practice attentive risk management due to the inherent volatility of such companies. In this article, we’ll examine the top marijuana stocks to watch now, offering details on their development potential and discussing how important it is to use technical analysis and sensible risk-reduction techniques.

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Profit Potential: Best Marijuana Penny Stocks for October 2023

• Cresco Labs Inc. (OTC: CRLBF)
• Cansortium Inc. (OTC: CNTMF)
• TerrAscend Corp. (OTC: TSNDF)

Cresco Labs Inc.

Cresco Laboratories is an American cannabis vertically integrated company. The company is currently setting the benchmark in the country for producing branded cannabis products. Across 11 states, the corporation operates 63 retail locations and 20 industrial buildings. The company opened sites in Palm Harbor and Lake Worth in March, increasing the total number of dispensaries in Florida to 28. On July 31st, the firm announced the termination of its $2 billion merger with Columbia Care. Furthermore, the firms canceled an arrangement with hip-hop mogul Sean “Diddy” Combs to purchase some divested operations in New York, Massachusetts, and Illinois for up to $185 million.

Second Quarter 2023 Financial Highlights

• Second quarter revenue of $198 million, up 2% sequentially, driven by retail growth of 4% and flat wholesale revenue.
• Gross profit of $87 million, 44% of revenue.
• Adjusted gross profit of $93 million and Adjusted gross margin of 47%, up 100 bps from the first quarter.
• Adjusted SG&A1 reduction of $7 million sequentially.
• Adjusted EBITDA1 of $40 million, up 38% sequentially as margin improved 540 bps to 20%.
• Generated positive operating cash flow of $18 million, inclusive of $14 million of one-time cash charges related to facility closures, severance payments and M&A related fees.
• Second quarter net loss of $43 million, which includes $22 million of impairment charges.

CRLBF Stock Performance

CRLBF shares finished on October 11^th  at $1.62, down 33.87% in the last month of trading. The stock is presently trading in a 52-week price range of $1.00-$4.20, showing a 48.43 percent decline year to date.

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Cansortium Inc.

The Florida-based cannabis company Cansortium Inc. is committing to producing top-notch marijuana. Currently, the business has offices in Texas, Michigan, and Pennsylvania. Cansortium expanded into Florida and Pennsylvania thanks to a $90 million loan and equity agreement negotiated the year prior. A dispensary is located in Fruitland Park, Florida, claims the company. With 30 outlets, Cansortium is one of Florida’s largest dispensary networks. Under Fluent’s Fluent brand, a selection of high-end consumables such as full-spectrum extracts, cartridges, lotions, and other high-end goods are offered.

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.
• At 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 October 11^th, CNTMF stock finished at $0.09, up 38.46% in the past month of trading. In this case, the stock is now trading in a 52-week price range of $0.058-$0.23 and is down 19.50 percent year to date.

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TerrAscend Corp.

In the US and Canada, TerrAscend grows and distributes marijuana for both medical and recreational uses. One of the top cannabis growers in the US, the corporation includes operations in Pennsylvania, New Jersey, and California. The primary goals of this business are to manufacture and market artisan cannabis products as well as hemp and cannabis-infused goods. TerrAscend produced a number of items in Maryland under the Kind Tree brand. The Kind Tree brand will expand its current product line, which is made in Maryland from 15 different flower varietals, to include vapes and half-gram pre-rolls.

Second Quarter 2023 Financial Highlights

• Net Revenue was $72.1 million, an increase of 3.9% sequentially and 12.7% year-over-year.
• Gross Profit Margin was 50.2%, compared to 48.8% in Q1 2023 and 37.5% in Q2 2022.
• GAAP Net loss from continuing operations was $12.9 million, compared to $19.2 million in Q1 2023 and net income of $16.9 million in Q2 2022.
• EBITDA from continuing operations¹ was $6.5 million, compared to $6.1 million in Q1 2023 and $38.4 million in Q2 2022.
• Adjusted EBITDA from continuing operations¹ was $12.8 million, compared to $12.2 million in Q1 2023 and $8.8 million in Q2 2022.
• Adjusted EBITDA Margin from continuing operations¹ was 17.8%, compared to 17.6% in Q1 2023 and 13.8% in Q2 2022.
• Net cash provided by (used in) operating activities – continuing operations was $1.8 million compared to $10.5 million in Q1 2023 and ($14.9) million in Q2 2022.
• Cash and Cash Equivalents, including restricted cash, totaled $34.5 million as of June 30, 2023, of which $2.5 million was long term restricted, as compared to $33.5 million as of March 31, 2023.

Outlook for 2023

The Company reiterates its forecast for Net Revenue and Adjusted EBITDA from continuing operations1 of at least $305 million and at least $58 million in 2023, representing year-over-year growth of 23% in Net Revenue and 49% in Adjusted EBITDA from continuing operations, respectively.

TSNDF Stock Performance

TSNDF stock closed at $1.85 on October 11^th, down 14.91% in the past month of trading. In this case, the stock has a 52-week price range of $1.00-$2.50 and is up 64.16% in the last year.

 

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