Best Cannabis Penny Stocks In 2021
At the present time, are you looking for top marijuana stocks to invest in for 2021? Consequently, for the past several months most of the best cannabis stocks to buy have been seeing declines in the market. After reaching new highs in February pot stocks started a five-month-long pullback that looks like it could be ending this month. In the first week of August, the cannabis sector seems to be showing upside in the market.
In any case, one area of the cannabis sector that has seen significant gains in 2021 is marijuana penny stocks. For those investors unfamiliar with penny stocks these are any stocks trading in the market under the $5 mark. For investors, penny stocks are a high-risk area of the market. Because of this most traders prefer using short-term trading methods when investing in cannabis penny stocks.
So far in 2021 penny pot stocks saw substantial upside in the first quarter of the year. In addition, they have also seen the steepest declines during the pullback. Now after several months of consolidating lower in the market, top marijuana penny stocks could be primed for some upward momentum. As leading cannabis companies report strong earnings the cannabis sector could continue to climb from recent trading levels.
Investing In Penny Stocks And The Cannabis Industry
Before investing in top marijuana stocks investors should always do their own due diligence on a company. In most cases researching a company’s earnings and studying how the stock performs in the market can help you establish the best returns on your investment. One strategy many investors use to maintain a green portfolio is maximizing your gains and limiting your losses.
Minimizing your losses in a trade can help you maintain a healthy portfolio when trading. This strategy keeps your losses in check while you lock in gains according to the trade’s returns. Not letting your losses get out of control is a good way to manage your portfolio.
Presently, finding marijuana penny stocks could be a good way to achieve cannabis industry exposure on a short-term basis. As top cannabis penny stocks trade near some of their lowest levels in 2021, it could be time to add these stocks to your watchlist. As cannabis continues to move higher let’s look at 2 top marijuana penny stocks for your list right now.
Best Marijuana Penny Stocks To Watch In August
Lowell Farms Inc.
At the present time, Lowell Farms Inc is a company establishing a large presence in the California cannabis market. Primarily, the company has advanced production capabilities, grows artisan craft cannabis, and built a portfolio of award-winning licensed cannabis brands for cannabis consumers. The company established a licensing agreement with Ascend Wellness Holdings. In detail, the two companies will bring the Lowell Smokes brand to dispensary locations in Massachusetts and Illinois. On August 4th the company announced its iconic Lowell Smokes pre-roll packs will be available in Illinois. Specifically, Lowell Smokes will be available to Illinois consumers throughout 8 retail locations in the state.
In its first-quarter 2021 results, the company saw revenue of $11 million up 17% year over year. Additionally, operating expenses were $4.2 million for Q1 versus $5.4 million in Q1 of 2020. Lowell Farms is operating at a loss of $5.7 million in the first quarter. Recently, Lowell Farms announced it is commissioning a first-of-its-kind cannabis processing facility in Salinas Valley, California. This facility will be capable of processing 250,000 lbs. of flower cannabis annually. Lowell is expected to release its second-quarter 2021 financial results on August 16th after the close.
LOWLF stock closed on August 9th at $1.23 up 7.89% year to date. The stock has a 52-week price range of $0.91-$2.149 and has declined by 20.62% in the last six months. According to analysts at Wallet Investor LOWLF stock has a 1-year forecast price target of $1.94 per share. As the cannabis sector continues to show momentum LOWLF stock could be a top penny marijuana stock for your list this week.
4Front Ventures Corp.
4Front Ventures is a national MSO and retailer that has a market advantage in mass-produced low-cost quality branded cannabis products. Primarily, the company distributes a portfolio of over 25 cannabis brands. At the current time, 4Front has dispensaries in Illinois, Massachusetts, California, Michigan, and Washington state. In August 4Front closed the first phase of a 558k sq. ft. cultivation and production facility in Illinois. Specifically, the deal is backed by Innovative Industrial Properties, Inc. (NYSE:IIPR) and estimates construction to be complete by Q2 2022.
The company reported first-quarter 2021 pro forma revenue of $31.4 million. 4Front also reiterated full-year 2021 guidance for pro forma revenue of $170-$180 million and adjusted EBITDA of $40-$50 million. As a result, the company continues exceeding its own expectations and is experiencing higher sales from two Massachusetts dispensaries due to adult-use sales in 2020.
FFNTF stock closed on August 9th at $1.1106 up 22.04% year to date. The stock has declined by 30.89% in the past six months but has been more stable in the last five trading days. According to analysts at Stock Invest FFNTF stock is expected to fall 17.16% during the next 3 months of trading. This analysis is based on the penny stock’s short-term trading trends and further fall is signaled. As it stands FFNTF stock could be a good cannabis penny stock to watch for a better entry price.