Ranking the Best Marijuana Penny Stocks for August 2023
The appeal of marijuana penny stocks has drawn considerable attention in the ever-changing economic landscape. With changing cannabis laws, the business has unparalleled opportunities for growth and innovation. As traders seek high-risk, high-reward investments, investing in penny stocks gives an enticing possibility.
The cannabis sector’s exponential expansion is undeniable, driven by changing perceptions and legislative breakthroughs. With a projected worth of billions, it’s a prime arena for investors seeking to capitalize on a burgeoning market. However, the unpredictability demands careful consideration, especially when navigating the realm of penny stocks – those valued at less than $5.
Trading penny stocks necessitates a distinct set of tactics that combine astute market analysis with a tolerance for volatility. While traditional equities provide stability, penny stocks thrive on the possibility of massive returns. However, this potential is matched by the hazards inherent in a market frequently influenced by speculation and external forces. As we investigate the top marijuana penny stocks, it’s critical to understand both the tantalizing promise and the related risks.
Unlocking Potential: Top Marijuana Penny Stocks to Invest in This August
- Planet 13 Holdings Inc. (OTC: PLNHF)
- StateHouse Holdings Inc. (OTC: STHZF)
- TILT Holdings Inc. (OTC: TLLTF)
Planet 13 Holdings Inc.
Planet 13 (www.planet13holdings.com) is a cannabis firm with award-winning cultivation, production, and dispensary activities. It has offices in Las Vegas and Orange County, California. Planet 13 also has a Florida medical marijuana treatment center license and a preliminary Illinois Social-Equity Justice Involved dispensary license. Planet 13’s mission is to establish itself as a renowned brand known for its high-quality cannabis retail operations and new product development.
Financial Highlights – Q2 – 2023
Unless otherwise noted, all comparisons below are to the quarter ended June 30, 2022.
- Revenue was $25.8 million compared to $28.4 million, a decrease of 9.1%. The decline in revenue was driven by a decline in the average price of cannabis in Nevada, partially offset by an increase in wholesale revenue in Nevada.
- Gross profit was $11.9 million or 46.0% compared to $13.8 million or 48.7%. The decline in gross profit was driven by a decrease in the average price of cannabis in Nevada and a greater percentage of revenue from lower-margin wholesale revenue.
- Total expenses were $15.4 million compared to $15.6 million, a decrease of 1.6%. The decline in total expenses was driven by lower share-based compensation offset by higher professional fees associated with potential M&A.
- Net loss of $4.3 million compared to a net loss of $2.0 million. The increase in net loss was driven by lower gross profit dollars and high one-time costs associated with potential M&A.
- Adjusted EBITDA of $3.0 million compared to Adjusted EBITDA of $2.9 million. The higher Adjusted EBITDA margin was primarily due to improvement in the Company’s operating costs.
PLNHF Stock Performance
PLNHF stock closed on August 22nd at $0.4821, down 13.91% in the last three months of trading. The stock has a 52-week price range of $0.47-$1.77 and is down 67.50% in the last year. According to analysts at CNN Business, PLNHF stock has a 12-month forecast median target of $1.28 per share. In this case, this would represent an increase of 165.08% from its last trading price of $0.4821.
StateHouse Holdings Inc.
StateHouse combines four forward-thinking legacy firms with a long history in California cannabis: Harborside, Loudpack, Urbn Leaf, and Sublime. Harborside was one of the first six companies in the United States to get a cannabis license. Harborside, now Statehouse, has 13 locations throughout Oregon and California. StateHouse expanded its footprint in California in 2021, and this trend could continue. StateHouse’s Salinas growing facility has expanded, allowing for year-round production and more than doubling crop capacity.
Q1 2023 Highlights
- Q1 2023 net revenues were $24.7 million, an increase of 42.8% compared with $17.3 million in Q1 2022.
- Retail revenues were $14.4 million, representing 58.5% of total sales for Q1 2023, an increase of $2.8 million compared to Q1 2022.
- Gross profit before adjustments for biological assets increased 98% to $10.9 million in Q1 2023, compared with $5.5 million in Q1 2022.
- Consolidated gross margins improved to 44.3% in Q1 2023, compared to 31.9% for Q1 2022.
STHZF Stock Performance
STHZF stock closed at $0.025 on August 22nd and has a 52-week price range of $0.008-$0.4600. In this case, STHZF stock has decreased 29.68% in the last three months of trading.
[Read More] Top Marijuana Stocks to Watch Today
TILT Holdings Inc.
TILT Holdings Inc., an international market specialist, may be able to assist cannabis entrepreneurs in developing a global brand. The companies’ primary markets include the European Union, the United States, Canada, Israel, Mexico, and South America. TILT, in particular, has a diversified portfolio of firms that provide manufacturing, production, hardware, and software to other well-known cannabis businesses. The company frequently provides the best inhalation device for cannabis-based treatments in the American and European markets.
Q2 2023 Financial Summary
- Revenue was $41.6 million in the three months ended June 30, 2023, compared to $47.1 million in the prior year period, with the decrease primarily attributable to Jupiter driven by lower sales volume as well as a number of orders occurring, but not fulfilled, at the end of the quarter, and lower average price in certain product lines. This was partially offset by growth in the Company’s plant-touching business.
- Gross profit was $4.0 million, or approximately 9.7%, in the three months ended June 30, 2023, compared to $10.9 million, or approximately 23.3%, in the prior year period. The decrease in gross margin was primarily due to a one-time write-down of inventory across the Company’s markets. Excluding the write-down, gross margin would have been 21.4% for the second quarter of 2023.
- Net loss was $26.9 million in the three months ended June 30, 2023, compared to a net loss of $7.1 million in the prior year period, with the difference primarily driven by $15.7 million of non-cash write-down expenses related to inventory, investment and loans receivable in the second quarter of 2023.
- Adjusted EBITDA (non-GAAP) increased to $1.5 million in the three months ended June 30, 2023, compared to $1.1 million in the prior year period. The increase was primarily driven by early progress with the Company’s strategic refinement and optimization initiatives.
- On June 30, 2023, the Company had $4.1 million of cash, cash equivalents, and restricted cash compared to $3.5 million on December 31, 2022. Notes payable net of discount on June 30, 2023, was $57.0 million compared to $59.7 million on December 31, 2022.
TLLTF Stock Performance
TLLTF stock is trading at $0.028 on August 22nd, down 37.89% in the past three months. The stock has a 52-week price range of $0.019-$0.1790, down 83.56% in the last year.
Cannabis Penny Stocks to Watch in August
In the dynamic realm of marijuana stocks, August offers a promising landscape for risk-tolerant investors and cautious observers. While substantial gains beckon, diligent research, and strategic decisions remain paramount for navigating this exciting yet unpredictable market. As the cannabis industry continues to evolve and legislative shifts shape its trajectory, these top-ranked penny stocks serve as indicators of potential growth. Investors must balance their appetite for risk with a commitment to staying informed, ensuring a well-informed approach to reaping the rewards in this ever-changing investment arena.
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