Best Cannabis Stocks In 2021 And Current Market Volatility
In December the best marijuana stocks to buy are showing enhanced market volatility. After spending most of the day in the green most of the cannabis sector ended the trading day lower in the market. One major factor that weighed down the top cannabis stocks in 2021 is federal cannabis reform. Throughout the year many different bills have been introduced in the House only to be knocked down in the Senate.
In November the House attached SAFE Banking to the NDAA in another attempt to get something passed to improve the cannabis industry. But Senate Majority Leader Chuck Schumer has previously announced he wanted to pass federal marijuana legalization and decriminalization before cannabis banking. As we begin to closeout 2021 the increased volatility could be an opportunity for active traders.
One-way investors take advantage of the price swings is by trading marijuana penny stocks. For those unfamiliar with penny stocks, these are any stocks trading under the $5 mark. Known for being a high-risk reward area of the market traders take advantage of the lower price points and increase their position size. In general, using day trading and swing trading techniques investors can produce returns on a short-term basis.
Investing In Pot Stocks While The Cannabis Sector Is Down
In 2021 cannabis penny stocks saw significant gains in the first quarter before mid-February. Now trading near some of the lowest prices seen this year it could be time to make a marijuana stock watchlist for December. Before investing in marijuana stocks, it’s always important to do your own due diligence on a company. Researching a company’s financial results and press releases can help you find the best performers. In addition, studying how a stock moves in the market can allow you to establish the best entry points for your position.
[Read More] 2 Top Marijuana Stocks For Your Upcoming 2022 Watchlist
For the most part, Canadian marijuana penny stocks have seen the most price fluctuations this year. This is because they are significantly affected by the entry into the US markets. Additionally, some Canadian cannabis stocks have also gained notoriety as a meme stock earlier in the year. This has kept them relevant among Reddit investors in 2021. Let’s look at 2 top Canadian cannabis stocks for your watchlist this week.
Best Canadian Marijuana Penny Stocks Right Now
- OrganiGram Holdings Inc. (NASDAQ: OGI)
- Sundial Growers Inc. (NASDAQ: SNDL)
OrganiGram Holdings Inc.
First, on the list, OrganiGram Holdings Inc. is one of the leading licensed producers of cannabis and cannabis-derived products in Canada. In general, the company is known for producing high-quality, indoor-grown cannabis products to both the medicinal and recreational markets. Additionally, Organigram is developing its international business partnerships increasing the company’s presence in the global cannabis industry. Currently, the company is also growing its wholesale shipping of cannabis and sells products online. Organigram extended its SHRED product portfolio with high quality, SHRED’ems Gummies. Also, the company launched Edison JOLTS Canada’s first flavored high potency THC ingestible extracts.
To highlight, OrganiGram produced 84 new SKUs since July 2020 as a part of revitalizing its products portfolio. In detail, this includes two new high potency strains under the higher-margin Edison brand in Q3. The company released its fourth quarter and fiscal 2021 results Q4 net revenue of $24.9 million compared to $20.4 million in Q4 fiscal 2020. In addition, Q4 Fiscal 2021 adjusted gross margin was $3 million or 12% of net revenue. As it stands, the company sustained a net loss of $26 million compared to a net loss of $38.6 million in the same period the prior year. Organigram gave an outlook for Q1 fiscal 2022 revenue to be higher than Q4 fiscal 2021.
OGI stock closed on December 6th at $1.87 down 17.98% in the last month. The stock has a 52-week price range of $1.28-$6.45 and is up 40.60% year to date. According to analysts at CNN Business OGI stock has a 12-month median price target of $2.36 per share. In this case, this would represent an upside of 26.17% from its last trading price.
[Read More] Top Marijuana Stocks To Buy This Week? 2 To Watch In December
Sundial Growers Inc.
Sundial Growers Inc. engages in the production and marketing of cannabis products for the adult-use market in Canada. In general, the company manufactures and distributes inhalable products, such as flower, pre-rolls, and vapes. Sundial announced it launched the first Canadian Caviar cone under the Top Leaf brand. In detail, the Forbidden Lemon Caviar Cones will be the first caviar cone product to hit the Canadian market. At the present time, this launch reinforces Sundial’s focused innovation pipeline around premium inhalable in the Canadian cannabis market. In October Sundial announced it would acquire Alcanna Canada’s largest private liquor retailer.
In November Sundial delivered its third-quarter 2021 results with net earnings of $11.3 million and an Adjusted EBITDA of $10.5 million. To highlight, the net revenue from the cannabis segment reached $14.4 million in Q3 2021. Gross margins from the cannabis segments were $1.8 million compared to a loss of $19.5 million in Q3 2020. In addition, the company saw investment and fee revenue of $3.3 million, realized gains on securities of $6.0 million and the company has profited from equity account investees of $9.9 million in Q3 2021.
SNDL stock closed on December 6th at $0.5744 is down 10.67% in the last month. The stock has a 52-week price range of $0.4210-$3.96 and is up 21.31% year to date. According to analysts at Tip Ranks SNDL stock has a 12-month average price target of $0.89 per share. In this case, this would represent an upside of 54.94% from its last trading price.
[Read More] Top Cannabis Stocks To Watch Under $1 Right Now
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