Canadian Marijuana Stocks to Monitor Mid-October
As we enter the fourth quarter of 2023, investors looking for possibilities in the rapidly growing global cannabis market continue to focus on Canadian marijuana stocks. The cannabis sector has expanded significantly in recent years as more and more nations legalize cannabis for recreational use, including Canada. According to Grand View Research, the worldwide cannabis market is predicted to reach $103.9 billion by 2024, poised for an accelerated expansion. Specifically, Canadian marijuana stocks continue to be in high demand in this developing industry, making it crucial for investors to use short-term trading tactics and technical analysis while keeping a close eye on risk management to maximize their gains.
Since the Canadian marijuana market is dynamic and volatile, short-term trading can be very profitable. Investors can take advantage of short-term fluctuations by carefully watching price movements, volume trends, and technical analysis tools, including moving averages, relative strength indicators, and support/resistance levels. However, the inherent volatility also necessitates a carefully thought-out strategy for risk management. A portfolio’s diversification, stop-loss orders, and discipline are crucial components for protecting assets in this industry. In general, this article examines the top Canadian marijuana stocks for Q4 2023, providing information on their performance and prospects and trading and risk management techniques in the exciting world of cannabis investments.
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Canadian Marijuana Stocks to Keep an Eye on Mid-October
- Organigram Holdings Inc. (NASDAQ: OGI)
- Cronos Group Inc. (NASDAQ: CRON)
- Aurora Cannabis Inc. (NASDAQ: ACB)
Organigram Holdings Inc.
OrganiGram Holdings Inc. is well-known for its cannabis-derived and extracted goods. The company is well known for producing top-notch marijuana for both recreational and therapeutic uses. In order to increase its position in the international cannabis market, Organigram is increasing its most crucial foreign contacts. Additionally, the company’s wholesale cannabis distribution business is growing quickly. Also, Organigram’s SHRED product line now includes the premium addition of SHRED’ems Gummies. The Edison JOLTS are also the nation’s first tasty and effective THC edible extracts.
Highlights
- Recreational net revenue was $92.5 million for the nine months ended May 31, 2023, an increase of $8.0 million over the same prior-year period.
- Increased sequential net revenue from Canadian recreational business by 7% vs. Q2 driven by continued success in hash and rebound in flower
- Organigram regained the #3 position in May and held it through June with 6.7% national market share
- Held the #1 position in milled flower, the #1 position in concentrates, and moved into the #2 position in gummies nationally on May 1
- International sales for the first nine months of fiscal 2023 of $18.4 million exceeded the $9.5 million realized for the same prior-year period by 94%
- Completed first U.S. investment in Phylos Bioscience Inc. (“Phylos”) to commercialize THCV and transition a portion of production capacity to more cost-effective and consistent seed-based production over time
- Completed investment in Green Tank Technologies Corp. (“Greentank”) for initial exclusive access to new vapour heating technology
- Product Development Collaboration with BAT moving rapidly toward product commercialization.
- SHRED brand is one of the largest cannabis brands in the Canadian market approaching $190 million in retail sales in the last 12-months2
- Successfully launched 28 SKUs in the quarter for a total of 127 in the market
- Completed ramp-up of SHRED X Rip Strip production and distribution to meet strong consumer demand
- Announced supply agreement with Sanity Group GmbH (“Sanity Group”) to supply medical cannabis to the promising German market
- A strong balance sheet with $75 million in cash and negligible debt
OGI Stock Performance
OGI stock closed at $1.17 on October 12th, down 33.52% in the past month of trading. Specifically, the stock has a 52-week price range of $1.14-$5.08 and is down 63.44% year to date. According to analysts at CNN Business, OGI stock has a 12-month median price target of $3.04 per share. In this case, this would represent an upside of 159.54% from its last trading price of $1.17.
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Cronos Group Inc.
Cronos Group Inc. operates on five continents as a global cannabis distributor. Consumers in Canada have been highly complimentary of Cronos’ cannabis-related endeavors. Cronos also disclosed the price it paid to purchase a 10.5 percent share in PharmaCann, which was $110.4 million. In addition, sales will be one of the effects of the US government’s legalization of marijuana. The 23 dispensaries and six manufacturing facilities owned by PharmaCann would be included in the agreement. The business introduced a new line of cannabis candies in two flavors earlier this year. According to a survey, these particular dishes are popular with adults. In June, the business and Geocann collaborated to employ VESIsorb delivery technology for quicker absorption.
Second Quarter 2023
- Net revenue of $19.0 million in Q2 2023 decreased by $2.6 million from Q2 2022. The decrease was primarily due to lower cannabis flower sales in Israel due to competitive activity, the slowdown in patient permit authorizations and political unrest, and an adverse price/mix in the Canadian cannabis flower category driving increased excise tax payments as a percent of revenue. Furthermore, the weakened Canadian dollar and Israeli shekel against the U.S. dollar during the current period adversely impacted results.
- Gross profit of $3.1 million in Q2 2023 decreased by $1.2 million from Q2 2022. The decrease was primarily driven by lower cannabis flower sales in Israel, and an adverse price/mix shift in cannabis flower sales in Canada.
- Adjusted EBITDA of $(15.9) million in Q2 2023 improved by $0.7 million from Q2 2022. The improvement year-over-year was primarily driven by decreases in general and administrative expenses and research and development expenses due to the Company’s cost savings initiatives.
CRON Stock Performance
On October 12th, CRON stock closed at $1.87, with a 52-week price range of $1.64-$3.616. According to CNN Business analysts, CRON stock has a 12-month consensus forecast price target of $2.77 per share. In this case, this projection represents a 47.98 increase from the stock’s most recent trading price of $1.87.
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Aurora Cannabis Inc.
Aurora Cannabis Inc. is a Canadian corporation that cultivates and exports medical marijuana to countries worldwide. The corporation bought Reliva, a startup that makes CBD in the nation, to have a foothold in the US cannabis industry. San Rafael ’71 now comes in three more cultivars thanks to Aurora. In addition, the business sold marijuana to Israel for $8 million. The company is now concentrating on balancing its books after delivering the first batch of cannabis to the French medicinal cannabis pilot program. The corporation expanded its market dominance in Germany in May by opening its first production and manufacturing facility in that nation that is EU-GMP accredited.
Fiscal 2024 Fourth Quarter Highlights
- Achieves Quarterly Net Revenue1 of $75.1 Million; Strong YoY Growth Across All Business Units; Global Medical Cannabis +14%, Consumer Cannabis +5%, Plant Propagation +12%
- Delivers Third Sequential Quarter of Positive Adjusted EBITDA1, Supported by Bevo’s Record Quarterly Revenue
- Cash Used in Operating Activities Reduced by $15.5 Million YoY, Re-Affirms Target of Positive Free Cash Flow in Calendar Year 2024
ACB Stock Performance
ACB stock closed at $0.5025 on October 12th, down 47.66% in the last month of trading. Specifically, the stock has a 52-week price range of $0.434-$1.62, down 45.53% year to date. According to analysts at CNN Business, ACB stock has a median price target of $0.61 per share. In this case, this would increase 21.95% from its last trading price of $0.5025.
Top Canadian Pot Stocks for Investment Consideration
In conclusion, the Canadian marijuana market will be full of opportunities by mid-October 2023 for investors ready to navigate the complex terrain of the cannabis industry. In general, these top Canadian marijuana companies provide intriguing chances for individuals hoping to profit from the market’s swings and growth as attitudes toward cannabis worldwide continue to change. Investors must, however, approach this market with a well-rounded strategy that incorporates in-depth research, watchful technical analysis, and responsible risk management. Also, investors may stay at the forefront of an industry undergoing a significant shift and position themselves for a potentially green future in the cannabis market by keeping a close eye on these featured top marijuana stocks.
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