Investing In Cannabis Penny Stocks In 2021
Essentially, small-cap marijuana stocks have seen significant market fluctuations in 2021. After starting the year rallying to new market highs, the cannabis sector has taken a large decline in market value in the past few months. Although in May things began to seem like they were turning around for pot stocks, today in the market they were trading lower in the morning. The cannabis sector is known for its market volatility.
Traditionally top cannabis stocks have always seen extreme shifts in market value and are favored by short-term investors for quick gains. Although this area of the market is associated with the high risk it also can deliver large rewards in market gains. In 2021 cannabis companies continue to show strong revenue increases adding to the exceptional performance the industry had in 2020.
One area of the market that is known for rapid swings in market value is marijuana penny stocks. Many day traders and swing traders capitalize off this market volatility to achieve market gains. In 2021 some cannabis stocks trading under $2 have seen triple-digit percentage gains this year. But now these stocks have been consolidating at current levels for a few weeks. So, the question is could marijuana penny stocks begin to rebound in May?
Is Now The Time To Start A Position In The Cannabis Sector?
With the top pot stocks to buy trading at some of their lowest price points this year, it could be an opportunity to start finding ones to invest in. At current market value, many leading cannabis stocks could deliver future gains in the market. To find the best marijuana penny stocks to buy it’s always important to do your own due diligence before investing. Studying a company’s financial results and watching how it performs in the market can help you establish the best position for your investment. With many catalysts developing that could kick start some upside in the sector more investors are looking for cannabis plays in May.
With this in mind, we can take a deeper look into some leading cannabis stocks that are trading under $2. As it stands these marijuana stocks could begin to show upward momentum in the market. Although these cannabis companies are much smaller than your larger MSOs, they are positioning themselves strategically in key markets. For this reason, let’s take a look at 2 cannabis stocks for your May penny stock watchlist.
- These Marijuana Stocks Are Working To Build More Market Momentum
- Top Marijuana Stocks To Watch Now? 2 Trading Under $5 To Consider
Marijuana Stocks To Watch:
Red White & Bloom Brands Inc.
In the US Red White & Bloom Brands Inc. is positioning itself as a top MSO in the legal cannabis and hemp markets. The company has established a footprint in key US markets like Michigan, Illinois, Massachusetts, Arizona, Florida, and California. In April RWB completed the acquisition of all Florida operations from Acreage Holdings Inc. (OTC: ACRHF). With the acquisition, RWB will now have 8 retail stores in prime locations throughout the state and over 15 acres of land with a 114,000 SQ. foot facility for cultivation and a 400 Sq. foot office building.
Taking advantage of the new market RWB plans to strategically introduce its Platinum Vape brands into the Florida market. Additionally, the company is launching Platinum Vapes brands into the recreational market in Arizona. Last week on May 4th RWB announced it did not file its audit in advance of the April 30th deadline and provided certain 2020 financial highlights. In detail system, product sales excluding Michigan, Florida, and Illinois in Q4 2020 were approximately C$26.5 million. This is an increase of 218% sequentially and the first full quarter after closing the Platinum Vapes acquisition. In 2020 RWB expanded rapidly into key markets and established its presence as a top-performing MSO in the US.
RWBYF Stock Performance
RWBYF stock is up 73.84% year to date trading at $1.03 on May 11th. In February RWBYF stock reached a new 52 week high of $1.65 per share. In the past month, the stock has decreased 10.34% and could be positioning for a rebound. According to analysts at Wallet Investor RWBYF stock has a 1-year forecast of $1.804 per share. In essence, this would represent a 75.15% increase from current levels. In any case, RWB is advancing rapidly in the US market making it a top marijuana penny stock to add to your watchlist right now.
TILT Holdings Inc.
With a global focus TILT Holdings Inc. provides business solutions to cannabis companies building their brand. Currently, the company has a large portfolio of companies that provide technology, hardware, cultivation, and production for other cannabis companies. Servicing many cannabis companies across the U.S., Canada, Israel, Mexico, South America, and Europe. TILT supplies the U.S. and European medical cannabis markets with medical-grade inhalation devices. As one of the company’s major focuses this area of the U.S. medical cannabis industry is expected to grow by 20% annually.
On May 25th TILT is expected to release its first-quarter results after the market closes. For TILT’s 2020 full-year results the company produced $16.9 million in adjusted EBITDA and $16.7 million in cash from operating activities. In addition, the company reaffirmed its 2021 revenue guidance of $205-$210 million and adjusted EBITDA guidance of $30-$32 million. In general, TILT is showing growth potential for 2021 and this earnings report could be a catalyst for pot stocks.
TLLTF Stock Performance
TLLTF stock is up 72.40% year to date trading at $0.486 per share on May 11th. Currently, the stock is down 6.45% in the last month with a high in February of $0.75 per share. According to analysts at Market Beat TLLTF stock has a consensus price target of $1.25 per share. This would represent a 157% increase from current levels. For this reason, TLLTF stock could be a top cannabis stock to buy under $1 in May.