Is It Time To Be Bullish On Marijuana Penny Stocks?
With marijuana stocks showing some upward momentum to start August many investors are looking for the best cannabis stock to invest in. For the past five months, many top pot stocks have been pulling back in the market. This has left most marijuana stocks trading close to their lowest price points this year. For new investors, this could be a good opportunity to find the best cannabis stocks to buy at lower trading levels.
]One area of pot stocks that has seen significant declines since the cannabis sector’s February highs is marijuana penny stocks. For those investors not familiar with penny stocks these are any stocks trading under the $5 mark. For the most part, penny stocks are known for being a high-risk area of the market. Because of this more investors prefer trading cannabis penny stock on a short-term basis.
Before investing in penny stocks, it’s important to do your due diligence on the company before starting a position. Studying how a penny pot stock moves in the market can help you establish the best entry price for your investment. This will enable you to achieve the best returns on your investments. In the first quarter of 2021 top marijuana penny stocks delivered the most upside for investors. Although most of these penny stocks have given back some of those gains there is a chance they will begin to rebound in the market.
Cannabis Earnings in August And Penny Pot Stocks In 2021
With many cannabis companies reporting earnings in August strong revenue growth could be a potential catalyst for cannabis stocks. Another possible catalyst that could cause an upward trend in marijuana stocks is US federal cannabis legalization.
Currently, a draft of the Cannabis Administration and Opportunity Act is circulating in Congress to garner up the necessary votes to pass. Although at the present time there is not enough support from lawmakers to get the marijuana legislation passed Congress could make the necessary changes to make it successful.
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For investors looking for the best marijuana penny stocks for their list in August, there are several penny stocks with potential currently. Finding these cannabis stocks at good entry points takes some research into the top penny stocks. With this in mind, let’s take a closer look at 2 top marijuana penny stocks for your list before next week.
Top Marijuana Penny Stocks To Watch In August
- IM Cannabis Corp. (NASDAQ:IMCC)
- 4Front Ventures Corp. (OTC:FFNTF)
IM Cannabis Corp.
IMC is a global operator in the medical and adult-use recreational cannabis sector, that supplies products to Israel, Germany, and Canada. The company believes that the IMC brand has become a staple in the Israeli medical cannabis industry. Recently IMC has also expanded its business to offer services to the medical cannabis industry. In Europe, IMC operates through Adjupharm, a German-based subsidiary, and EU-GMP-certified medical cannabis distributor.
In July IMC announced the completion of a state-of-the-art logistics center in Germany. Primarily, this facility will allow Adjupharm to streamline its supply chain including repackaging bulk cannabis. IMC gave investors preliminary Q2 results and a Q3 outlook for 2021. Specifically, IMC expects net revenue of $11-$12 million in Q2 up 30% sequentially. The company is expecting significant revenue growth in the third quarter of 2021. This is partly due to resumed growth in Germany with shipments resuming at the start of the third quarter as well as the additional agreements to ensure the flow of EU-GMP supply.
IMCC stock is trading at $4.95 on August 6th down 38.08% year to date. The stock has a 52-week price range of $0.784-$11.63 and has declined 9.72% in the last month. According to analysts at Tip Ranks IMCC stock has a 12-month average price target of $8.19 per share. In essence, this would represent an increase of 65.79% from its last trading price of $4.95. For this reason, IMCC stock is a top marijuana penny stock for your watchlist in August.
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4Front Ventures Corp.
At the present time, 4Front Ventures is a national MSO and retailer that has a market advantage in mass-produced low-cost quality branded cannabis products. Specifically, the company distributes a portfolio of over 25 cannabis brands. 4Front has dispensaries in Illinois, Massachusetts, California, Michigan, and Washington state. The company delivered a Q4 pro forma revenue of $25 million and full-year proforma sales of $88.1 million for 2020.
On August 5th 4Front closed the first phase of a 558k sq. ft. cultivation and production facility in Illinois. The deal is backed by Innovative Industrial Properties, Inc. (NYSE:IIPR) and predicts 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. These new figures leave the company exceeding its own expectations and are experiencing higher sales from two Massachusetts dispensaries that started adult-use sales in 2020.
FFNTF stock is trading at $1.11 up 23.08% year to date. The stock is down 9.68% in the last month and has a 52-week price range of $0.50-$1.98. According to analysts at Wallet Investor are giving FFNTF stock a 1-year forecast price of $1.988 per share. 4Front is focusing on growth and could continue to flourish in the US cannabis market. With this in mind, FFNTF stock could be one of the best cannabis penny stocks to watch under $5.
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