Promising Marijuana Penny Stocks for September Watchlist
As we enter September 2023, the top marijuana stocks continue to captivate both day traders and swing traders. These speculative assets are characterized by high volatility, luring traders to seek possible profits through systematic purchasing and selling. In this environment, traders rely on technical indicators to determine optimal entry and exit locations, increasing their chances of success.
These penny stocks reflect the sector’s hopeful growth in the ever-changing face of the US cannabis industry. Cannabis companies are well positioned for growth as legalization grows and public perception shifts. Future statistics predict significant market expansion, increasing investor interest and momentum in the penny stock market. This September, keeping an eye on these emerging chances could pay off for traders looking to enter the volatile world of top marijuana penny stocks.
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Penny Pot Prospects: September 2023’s Top Stocks for Day Traders
- Ascend Wellness Holdings, Inc. (OTC: AAWH)
- Lowell Farms Inc. (OTC: LOWLD)
- StateHouse Holdings Inc. (OTC: STHZF)
Ascend Wellness Holdings, Inc.
AWH facilities exist in Massachusetts, New Jersey, Ohio, Illinois, Michigan, and Michigan. AWH’s most important commercial activities include owning and operating facilities that produce well-known strains and having a diverse product line. The company typically manufactures and distributes its products under the brand name Ozone. Candy, concentrates, pre-rolls, flowers, and vape pens are cannabis-related things at the shop. AWH has 17 retail locations and sells items to legal marijuana businesses. The purchase price of MedMen NY Inc. will climb, as agreed upon between Ascend Wellness and MedMen Enterprises Inc.
Q2 2023 Financial Highlights
- Gross revenue increased 28.4% year-over-year and 7.0% quarter-over-quarter to $151.0 million.
- Net revenue, which excludes intercompany sales of wholesale products, increased 26.1% year-over-year and 7.7% quarter-over-quarter to $123.0 million.
- Retail revenue increased 18.9% year-over-year and 8.6% quarter-over-quarter to $89.9 million.
- Gross wholesale revenue increased 45.3% year-over-year and 4.7% quarter-over-quarter to $61.2 million. Wholesale revenue, net of intercompany sales, increased 51.0% year-over-year and 5.4% quarter-over-quarter to $33.1 million.
- Net income of $0.8 million during the quarter represented an improvement compared to a net loss of $21.2 million in Q2 2022 and $18.5 million in Q1 2023.
- Adjusted EBITDA1 was $21.3 million, representing a 17.3% margin. Adjusted EBITDA increased 2% and margins declined 409 basis points year-over-year. Margins declined 308 basis points quarter-over-quarter.
- As of June 30, 2023, cash and cash equivalents were $68.0 million and net debt2 was $241.8 million.
- Generated $25.4 million of cash flows from operations, representing the second quarter in a row of positive operating cash flow. This included a benefit from the recognition of a $22.8 million employee retention tax credit (“ERTC”), of which $17.5 million was collected and then returned to a lender as debt repayment of an advance previously received. Excluding this inflow, cash flows from operations would have been nearly $8 million.
AAWH Stock Performance
AAWH stock closed on August 30th at $0.6631, up 7.38% in the past month of trading. The stock has a price range of $0.5314-$2.69, down 42.34% year to date. According to analysts at CNN Business, AAWH stock has a 12-month median price forecast of $3.93 per share. In this case, it would represent an increase of 491.92% from its last trading price of $0.6631.
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Lowell Farms Inc.
Lowell Farms Inc., a well-known cannabis producer in California, is rapidly extending its market share. Establishing good cannabis brands, artisan craft cannabis farming, and cutting-edge production technology are among the organization’s key goals. A license agreement exists between the company and Ascend Wellness Holdings. The two companies will collaborate to provide the Lowell Smokes brand to Massachusetts and Illinois medicinal marijuana merchants. Ascend and Lowell formally agreed in November to export Lowell Smokes to Michigan. The well-known Lowell Smokes pre-roll bundles will also be accessible in Illinois, according to the company.
Second Quarter Financial Highlights
Revenues:
- Net revenue generated for Q2 2023 decreased 47% to $7.0 million, as compared to $13.2 million for Q2 2022. Net revenue was $7.5 million for Q1 2023, a decrease of 7%.
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- CPG revenue decreased 40% compared to Q2 2022 and decreased 5% compared to Q1 2023.
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- Bulk revenue from self-grown wholesale products decreased 34% compared to Q2 2022 and decreased 11% compared to Q1 2023. In Q2 2023, there was a 37% decrease in volume and a 44% increase in realized price per pound compared to Q1 2023.
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- LFS revenue decreased 95% compared to Q2 2022 and decreased 18% compared to Q1 2023.
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- Out of state licensing revenue decreased 14% compared to Q2 2022 and increased 7% compared to Q1 2023.
Gross Margin:
- Gross margin for Q2 2023 was negative 4.8%, representing a gross loss of negative $0.3 million, compared to a gross margin of positive 1.8% for Q1 2023, which represented a gross profit of $0.1 million.
Operating Loss:
- Operating loss was $2.6 million compared to an operating loss of $3.0 million in Q2 2022, a 12% improvement. Operating loss was $2.3 million in Q1 2023.
Net Income:
- Net loss was $0.1 million compared to a net loss of $4.6 million in Q2 2022, and a net loss of $4.0 million for Q1 2023.
Adjusted EBITDA:
- Adjusted EBITDA was negative $1.2 million compared to adjusted EBITDA of negative $1.1 million in Q2 2022 and adjusted EBITDA of negative $1.1 million in Q1 2023. Adjusted EBITDA is a non-GAAP financial measure. See “Use of Non-GAAP Financial Information” below for further information and a detailed reconciliation to Net Loss, the closest comparable GAAP measure.
LOWLD Stock Performance
The shares of LOWLD closed at $0.2734 on August 30th, up 781.94% on the last day of trading. In this case, LOWLD went through a 10 to 1 share Consolidation effective August 30, 2023. The stock is now trading in a 52-week price range of $0.0362-$2.25.
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StateHouse Holdings Inc.
StateHouse was formed by integrating four forward-thinking legacy enterprises with a long history in California cannabis: Harborside, Loudpack, Urbn Leaf, and Sublime. Harborside was one of the first six companies in America to obtain a cannabis license. Harborside, as it was previously known, presently has 13 locations throughout Oregon and California. In 2021, StateHouse expanded its presence in California, and this trend is projected to continue. StateHouse’s Salinas growing facility has expanded, allowing for year-round production and more than doubling crop capacity.
Q2 2023 Highlights
- Q2 2023 net revenues were $25.3 million, compared with $34.6 million in Q2 2022.
- Retail revenues were $13.0 million, representing 51.3% of total sales for Q2 2023, compared to $18.5 million or 54.9% of total sales in Q2 2022.
- Gross profit before adjustments for biological assets was $12.3 million in Q2 2023, compared with $14.7 million in Q2 2022.
- Consolidated gross margins improved to 49.9% in Q2 2023, compared to 46.6% for Q2 2022.
- Q2 2023 cultivation yields in the Company’s Salinas facility were up 34% over Q1 2023. Relative to Q2 2022, yields were up 23% per sq/ft due to improved lighting and growing techniques. TOPS, the Company’s high-value customer loyalty program, as of August 29, 2023, had 281,000 loyalty members enrolled.
STHZF Stock Performance
STHZF stock closed at $0.0523 on August 30th and has a 52-week price range of $0.008-$0.3140. In this case, STHZF stock has increased 48.77% in the last month of trading.
Identifying Profitable Penny Stocks in the Cannabis Industry
The world of marijuana penny stocks is enticing for speculators looking for both short-term returns and long-term possibilities. As September 2023 approaches, these carefully chosen stocks promise tremendous movement, making them a focal point for day and swing traders. Traders can take advantage of the volatility of these stocks by using technical indicators to manage the complexity of entry and exit points.
In addition, the broader context of the US cannabis sector offers a picture of consistent growth and expansion. These penny stocks reflect the industry’s dynamic trajectory, with ongoing legalization initiatives and increasing consumer tastes. Also, the attractiveness of these equities for investors is clear, as statistics predict strong market growth in the future. Overall, keeping a close eye on these top marijuana penny stocks throughout September could pay significant returns for anyone ready to enter this ever-changing sector.
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