Thanksgiving Watchlist: Leading Canadian Cannabis Stocks

 High Potential: Top Canadian Cannabis Stocks for Thanksgiving Week

As Thanksgiving week approaches, attention turns to top Canadian marijuana stocks. The global cannabis industry is experiencing remarkable growth. Canada, a leader in cannabis production and legalization, is advancing in tandem. This growth presents exciting opportunities for investors. In addition, key Canadian cannabis companies are expected to show significant market activity. This period is critical for those monitoring the cannabis sector.

Investors are eyeing short-term trading opportunities amid market volatility. Technical analysis plays a crucial role in navigating these waters. It helps in identifying trends and potential entry or exit points. Alongside this, proper risk management is essential. It ensures that traders can capitalize on market movements. Yet, they must safeguard against unforeseen market shifts. This week, savvy investors will closely monitor Canadian cannabis stocks. They aim to leverage these strategies for potential gains.

[Read More] Thanksgiving Week Watchlist: Top Canadian Cannabis Stocks

Canada’s Green Giants: Top Cannabis Stocks to Watch This Thanksgiving

  1. Aurora Cannabis Inc. (NASDAQ: ACB)
  3. Organigram Holdings Inc. (NASDAQ: OGI)

Aurora Cannabis Inc.

Aurora Cannabis, headquartered in Edmonton, Alberta, is a prominent name in the cannabis industry. Founded in 2013, it’s known for producing and distributing a wide range of cannabis products. These include dried cannabis, cannabis oil, and cannabis-infused edibles. Aurora has established itself as a key player in both medical and recreational cannabis markets.

As of my last update in April 2023, Aurora Cannabis had expanded its retail footprint significantly. The company operates numerous stores across Canada, with a strong presence in Alberta and Ontario. While their primary market remains Canada, they have been exploring international opportunities. This expansion reflects their commitment to being a leading cannabis provider globally. Aurora’s strategic positioning in key markets underlines its growth and potential in the evolving cannabis industry.


Fiscal 2024 Second Quarter Highlights

Aurora Cannabis achieved a record positive adjusted EBITDA of $3.4 million. This marks a significant financial milestone for the company. Their quarterly net revenue saw a 30% year-over-year increase, reaching $63.4 million. This growth is primarily attributed to a 42% rise in global medical cannabis sales.

The company also reported a solid net cash position exceeding $200 million. They expect to fully repay their convertible senior notes’ remaining US$5.3 million balance by February 2024. Furthermore, Aurora Cannabis re-affirms its goal of achieving positive free cash flow in the 2024 calendar year. This objective underscores their financial stability and growth trajectory.

ACB Stock Performance

ACB stock closed at $0.4641 on November 21st, up 4.53% in the last month of trading. The stock has a 52-week price range of $0.41-$1.48 and is down 49.45% year to date. According to analysts at CNN Business, ACB stock has a median price target of $0.58 per share, which would increase 25.77% from its last trading price of $0.4641.

[Read More] Cannabis Stocks in Focus: Weekly Watchlist

Sundial Growers Inc.

Sundial Growers Inc. is a renowned player in the cannabis industry based in Calgary, Alberta, Canada. Established in 2006, Sundial focuses on producing and marketing cannabis for the adult-use market. Their product range includes dried flower, pre-rolls, and vapes. They are known for their commitment to safe, consistent, and high-quality products.

Sundial operates a significant number of retail stores across Canada, with a strong presence in Alberta, British Columbia, and Ontario. These regions are key markets for their cannabis products. As of my last update in April 2023, Sundial had not expanded into the United States or other international markets. Their growth strategy appears focused on consolidating and expanding their Canadian operations. Sundial’s emphasis on quality and customer experience has made it a notable name in Canada’s cannabis sector.


Third Quarter 2023  Highlights

In the third quarter of 2023, Sundial Growers Inc. (SNDL) reported notable financial and operational achievements. They generated $27.5 million in net cash from operating activities, a significant increase from $8.6 million in the third quarter of 2022. Their positive free cash flow reached $16.5 million, a remarkable turnaround from the negative $67.1 million in the same period last year.

SNDL’s unrestricted cash as of September 30, 2023, was $202.0 million. This is up from $185.5 million on June 30, 2023, marking an 8.9% sequential increase. This growth is credited to effective cash generation and operational efficiencies. Notably, these improvements were seen particularly in working capital management.

The company’s net revenue for the third quarter of 2023 was $237.6 million. This represents a 3.1% increase from $230.5 million in the third quarter of 2022. Their liquor retail segment maintained stable revenue at $151.8 million. The cannabis retail segment saw a 14.1% increase in net revenue, reaching $75.5 million. The cannabis operations segment experienced a significant 77.4% rise in net revenue, totaling $21.0 million.

Despite these gains, the gross margin decreased by 3.4% to $48.6 million. This decrease was mainly due to non-cash inventory impairments. The net loss for the quarter was $21.8 million. However, this was a 77.9% improvement from the $98.8 million loss in the third quarter of 2022. The improvement was largely due to asset impairments recorded in 2022.

Adjusted EBITDA for the quarter stood at $16.1 million. This is slightly lower than the $18.3 million reported in the third quarter of 2022. Additionally, SNDL currently holds five credit investments in the SunStream portfolio. This follows the monetization of one credit exposure in the third quarter of 2023.

SNDL Stock Performance

SNDL stock closed at $1.48 on November 21st, up 2.07% in the past month of trading. The stock has a 52-week price range of $1.25-$3.36 and is down 29.19% year to date. According to analysts at CNN Business, SNDL stock has a 12-month consensus price target of $3.63 per share. In this case, this would represent an increase of 145.56% from its last trading price of $1.48.

[Read More] 2023’s Cannabis Boom: Profiling the Leading US Marijuana Stocks with Double-Digit Gains

Organigram Holdings Inc.

Organigram Holdings Inc. is a major Canadian cannabis company headquartered in Moncton, New Brunswick. Founded in 2013, it specializes in the production and sale of medical and recreational cannabis. Their products range from dried flower to cannabis oil, catering to diverse consumer needs. Organigram is known for its focus on quality, innovation, and customer satisfaction.

Organigram’s retail footprint primarily spans Canada, with a significant presence in provinces like Ontario, Alberta, and British Columbia. As of my last update in April 2023, they had not expanded into the United States or other international markets. Their strategy appears to be concentrated on solidifying and expanding their Canadian market share. With a reputation for high-quality products and a growing number of retail outlets, Organigram is a key player in Canada’s cannabis industry.


Financial Highlights

Recreational net revenue was $92.5 million for the nine months ended May 31, 2023, an increase of $8.0 million compared to the same period the previous year.

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 a 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%

Operational Highlights

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 vapor heating technology

Product Development Collaboration with BAT is 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 $1.232 on November 21st, up 14.95% in the past month of trading. The stock has a 52-week price range of $0.97-$5.08, down 61.56% in the last year. 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 144.89% from its last trading price of $1.232.

Top Canadian Stocks for Thanksgiving Trading

As Thanksgiving approaches, Canadian cannabis stocks present intriguing prospects. The industry’s growth, driven by global and domestic expansion, offers numerous opportunities. Investors should closely monitor these stocks during this pivotal week. The potential for significant market movements is high. This is especially true for those with solid technical analysis skills and risk management strategies.

In conclusion, whether you’re a seasoned investor or new to the cannabis market, this Thanksgiving week is crucial. It’s a prime time to observe, analyze, and potentially capitalize on the Canadian cannabis sector. Overall, with the right strategies, investors can navigate this dynamic market. They can potentially reap rewards from these top Canadian cannabis stocks.

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