2 Marijuana Stocks To Watch As More Momentum Enters The Cannabis Sector
With marijuana stocks finally catching a wave of upward momentum investors want to know how long this will last. Now there is no way to be 100 percent certain how long this momentum will last. However with earnings soon to be reported by various cannabis companies some marijuana stocks may continue to rise. Shareholders have been waiting to see a rise in trading ever since mid-February when many cannabis stocks started to drop in the market.
Now in this time some marijuana stocks have had small recovery periods but were not able to sustain their upward climb. Currently, some stocks have yet to recover leaving more time to add some valuable cannabis stocks to your portfolio. As the cannabis industry continues to grow the hope is that with more progress will come better trading. In the U.S. legal cannabis sales have reached $17.5 billion and with more states looking to go legal, it will only add more value. Not only that with more legal states means more opportunities for those looking to work in the cannabis space.
Cannabis Stocks And Market Updates
Also, tax money made from legal states is being used to support social equity programs. This would help to rebuild areas that have been impacted by the war on drugs. Right now the cannabis industry overall is one of the most progressive sectors in the world. With better cannabis reform in the works, this progress will only continue to grow. So with cannabis stocks once again moving up in the market investors are keeping watch for the best chance to take profits. Now we are not out of the woods yet as anything can happen but if things continue to rise heading into may shareholders may feel better about this recovery period. The cannabis stocks mentioned below may see better momentum next month.
Marijuana Stocks To Watch Right Now In 2021
- Fire & Flower Holdings Corp. (OTC:FFLWF)
- Organigram Holdings Inc. (NASDAQ:OGI)
Fire & Flower Holdings Corp.
Fire & Flower Holdings Corp. has been one of the more favored marijuana stocks to watch by investors. In recent news, the company has released its record 2020 and fourth-quarter financial and operational results. Some key takeaways to note during this time are quarterly revenue increased 157% to $43.2 million year-over-year. As well the company had its second consecutive quarter of positive Adjusted EBITDA of $1.5 million for the fourth quarter of 2020.
This also made for a positive Adjusted EBITDA for the 2020 year. Also, the company closed the acquisition of Friendly Stranger Holdings Corp., a multi-store and multi-banner cannabis retail operator in Ontario. Another thing to point out is Fire & Flower’s has a cash balance of $30.6 million in comparison to $22.9 million for the fiscal year 2019.
“While 2020 was a challenging year due to the pandemic, it was also a transformative year for Fire & Flower as our strong fiscal 2020 financial and operational results demonstrate our ability to successfully execute on our aggressive growth strategy,” commented Trevor Fencott, Chief Executive Officer of Fire & Flower. “From an operating standpoint, we continued to make significant progress as we grew from 21 stores at the beginning of 2019 to 80 stores today, which includes the recent acquisition of Friendly Stranger.”
This has helped play a part in the company building more momentum in recent trading. Over the last week, FFLWF stock has started to rise in trading. From the 22nd of April to the 27th FFLWF stock has started its road to recovery. During this time FFLWF stock has managed to see gains of 7 percent. Which coming off a long downtrend is not a bad way to end the month.
Organigram Holdings Inc.
Organigram Holdings Inc. has been another watched cannabis stock as the marijuana sector slowly starts to recover. In the first 2 weeks of April, the company released its second-quarter fiscal 2021 results. Some things to note about these results are the company’s Q2 2021 net revenue decreased from Q2 2020. This was mostly due to lower wholesale revenue and a lower average selling price in Q2 2021.
Also, The Company was unable to fulfill certain demands for its products totaling approximately $7 million in Q2 2021 due to production and processing constraints. Shareholders are not happy about these results. As well much of this recent drop in trading may be partly due to how Organigram has performed as a business.
“Although Q2 2021 results were challenged by industry dynamics, COVID-19 and staffing limitations at our facility, we believe there are excellent prospects ahead for the industry, Organigram and our shareholders,” said Greg Engel, Chief Executive Officer of Organigram.
In the last month of trading OGI stock has faced many hurdles. The question is will OGI stock be able to get over them. Shareholders remain patient as they wait to see any type of increase in trading. As April is coming to end maybe OGI stock will start to recover in May.
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