Canadian Cannabis Stocks And US Federal Marijuana Reform In 2021
Top marijuana stocks to buy started the week with some downside in the market. As the market prepares for the Fed meeting on Wednesday investors saw a selloff in many sectors including cannabis stocks. One area that has suffered significant losses during 2021 is Canadian marijuana stocks. In general, Canadian cannabis stocks gained the most in the market in the first quarter of 2021. But after February the sector began to decline due to the delays with US federal cannabis reform.
Now after leaders in the Senate removed the SAFE Banking Act from the NDAA it seems we will not see any changes this year to the government’s ancient federal cannabis policies. As it stands Canadian cannabis companies are the most affected by the delays in US federal marijuana legalization. Although they have seen growth in 2021 most leading companies have established an entry into the American cannabis market once it’s federally legal to do so.
But delays with the US passing federal cannabis reform have not allowed them to enter the market at this time. Some Canadian companies have established entry by way of CBD or the acquisition of US companies. In December top Canadian pot stocks have fallen to some of the lowest trading levels seen this year. For new investors, this could be an opportunity to find the best marijuana stocks to invest in at lower price points.
Finding The Best Pot Stocks Before 2022
Before investing in cannabis stocks, it’s always important to do your own research on a company. Looking into a company’s finances and press releases can give you a better idea of the best companies to invest in. In addition, studying how a stock performs in the market can allow you to establish the best entry points for your trades.
[Read More] 2 Top Canadian Marijuana Stocks To Watch In 2022
One-way investors keep track of possible marijuana stocks to buy is by making a watchlist. Going into 2022 Canadian cannabis stocks are forecast by analysts to have possible upside from current trading levels. As we close out a year with a significant downside for pot stocks let’s look at 2 top Canadian marijuana stocks for your list in 2022.
Best Canadian Marijuana Stocks For Your Watchlist In 2022
- Canopy Growth Corporation (NASDAQ: CGC)
- High Tide Inc. (NASDAQ: HITI)
Canopy Growth Corporation
Canopy Growth is one of the leading manufacturers and distributors of cannabis and cannabis-derived goods in Canada at the moment. The company primarily sells cannabis and hemp-derived goods in Canada, the United States, and Germany. Canopy had signed a US distribution agreement with Southern Glazers Wine & Spirits for a CBD beverage portfolio earlier in 2021. Canopy expanded its brand portfolio in Canada by acquiring The Supreme Cannabis Company, Inc., one of the country’s premium cannabis brands. Whisl, a revolutionary CBD vape meant to manage your mood throughout the day, was also introduced by the company. The company announced plans to buy Wana Brands, the number one edibles brand in North America, in October. The firm revealed on November 17th that it had added 10 new strains to its premium flower collection across its 7ACRES and DOJA brands.
Canopy Growth reported $131 million in second-quarter fiscal 2022 revenue and $95 million in total net cannabis revenue. In the second quarter of fiscal 2022, the corporation reported a net loss of $16 million. Additionally, in Q2 FY 2022, Canopy recorded an Adjusted EBITDA loss of $163 million. In November Canopy made announced changes to its executive management team.
Words From The CEO
“These decisions reflect Management and the Board’s vision for building a best-in-class organization that is well-positioned to deliver long-term growth and shareholder value. We appreciate Mike and Rade’s contributions to advancing Canopy Growth to our position as a cannabis industry leader.”
David Klein, CEO, Canopy Growth
CGC Stock Performance
CGC stock closed at $9.31 on December 12th down 14.90% in the past five trading days. Currently, the stock has a 52-week price range of $9.06-$56.50 with this low happening in yesterday’s trading. According to analysts at CNN Business CGC stock has a 12-month median price target of $12.06 per share. In this case, this would represent an increase of 29.38% from its last trading price.
[Read More] 3 Top Marijuana Stocks For Your 2022 Watchlist
High Tide Inc.
High Tide Inc is a cannabis company that focuses on retail and makes and distributes consumption accessories. The company offers a diverse portfolio of businesses, including a leading Canadian cannabis retailer and a global manufacturer and distributor of cutting-edge smoking accessories. First and foremost, the firm has built the world’s largest accessories e-commerce platform. High Tide now has a footprint of 104 branded retail locations across Canada. High Tide completed the acquisition of Blessed CBD in October and is now entering the UK market. The firm established its 58th retail cannabis store in Alberta on November 9th, making it the province’s largest provider. Also, the company closed the acquisition of NuLeaf Naturals representing High Tide’s largest acquisition to date.
In addition, the firm finalized the acquisition of Smoke Cartel Inc and developed the Grasscity brand, which sells hemp-derived CBD products. High Tide’s quick expansion into the US cannabis market has continued with the acquisition of Dankstop, a leading online retailer. Also noteworthy, the company claimed sales growth of 99 percent to $48.1 million in the third quarter of 2021. As a result, gross earnings climbed by 75% year over year to $16.7 million. The company’s Adjusted EBITDA is $1.5 million, down from $3.4 million the previous year. The change in adjusted EBITDA is mostly due to High Tide’s NASDAQ re-listing.
HITI Stock Performance
HITI stock closed on December 12th at $5.20 down 9.72% in the past five trading days. Currently, the stock has a 52-week price range of $3.00-$13.29 up 73.07% year to date. According to analysts at Market Beat HITI stock has a consensus price target of $13.13 per share. In this case, this would represent an upside of 156% from its current trading price of $5.20. In conclusion, as December continues to be one of the worst trading months for top cannabis stocks these could be some of the best Canadian marijuana stocks for your 2022 watchlist.
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