Cannabis Stocks In A Volatile Market
Are you looking for top marijuana stocks to invest in for Q4 2021? For the past 8 months, the cannabis sector has experienced substantial market declines. This is mostly due to Congress not establishing marijuana legalization earlier in the year. Now in Q4 the SAFE Banking Act and the MORE Act have resurfaced and passed in the House. Although there currently is a hold up in the Senate because lawmakers have their own legislation they have been trying to advance.
It’s becoming evident that we could see federal marijuana legalization in the next few months. With a bipartisan effort to establish legalization now, this could be a catalyst for the cannabis sector. In 2021 top cannabis stocks have been showing significant volatility for the past several months.
One way many more investors are taking advantage of the volatility is by trading marijuana penny stocks. Penny stocks are those stocks that trade under the $5 stock price. Investors prefer trading these stocks on a short-term basis using day trading and swing trading methods. Because penny stocks trade at much lower price points investors can establish larger positions with much less capital. Trading cannabis penny stocks are considered a high-risk investment because of the rapid price swings in this area of the market.
Investing In Pot Stocks And Researching Leading Companies
Before investing in penny pot stocks, it’s important to do your own due diligence on a company. Researching a company’s financial results and studying how the stock performs in the market can help you achieve the best returns on your trades. With top marijuana penny stocks trading near the lowest levels seen in 2021 there could be an opportunity for future upside. As the US Senate continues working on marijuana legalization there could be a future catalyst in the works right now. In the past, the mention of federal marijuana legalization has created substantial upward momentum in top pot stocks.
In October it could be time to make a watchlist of the best marijuana penny stocks to buy in 2021. Recent drops in market value for the cannabis sector could give investors more upside when cannabis stocks begin to rally. So far in October, the downtrend continues in the cannabis sector. Let’s look at 2 top marijuana penny stocks under $1 for your list in mid-October.
Top Marijuana Penny Stocks To Watch In Q4 2021
At the present time, Cansortium Inc. is a leading cannabis company focusing on providing the highest quality cannabis in the state of Florida. Primarily, the company has established operations in Texas, Michigan, and Pennsylvania. Currently, the company is expanding its presence in Florida and Pennsylvania fully funded by a debt and equity financing of $90 million. In September, the company opened a dispensary in Fruitland Park, Florida. Right now, Cansortium has 27 operational dispensaries in Florida giving it a sizable presence in the state.
Additionally, the companies brand Fluent has produced a wide variety of premium dried flower, edibles, and full-spectrum concentrates, cartridges, and creams. Cansortium released its Q2 2021 results with revenue up 24% year over year to $16.5 million. Additionally, the company reported an adjusted EBITDA of $5.2 million. The company saw adjusted gross profits increased 24% to $10.7 million or 65.1% of revenue. In August Fluent by Cansortium expanded its Florida cultivation with new greenhouse facilities in Homestead and Sweetwater.
CNTMF stock closed on October 13th at $0.7385 up 9.44% in the past month of trading. Currently, the stock has a 52-week price range of $0.45-$1.35 down 4.09% year to date. According to analysts at Tip Ranks CNTMF stock has a 12-month average price target of $1.30 per share. In this case, this would represent an upside of 76.03% from its last trading price.
MedMen Enterprises Inc.
Second on the list is, MedMen Enterprises Inc. a cannabis retailer with locations in California, Nevada, Illinois, and Florida. Primarily, the company has an extensive selection of high-quality products, including MedMen-owned brands LuxLyte, and MedMen Red. Recently, expanding in Florida the company opened a new location in South Beach Miami, Florida, and continues expanding and in the US cannabis market. MedMen’s current interim Chief Executive Officer and Chairman of the Board of Directors, Tom Lynch, became the permanent Chief Executive Officer. In October MedMen announced that LiHouse Farms has agreed to manage cultivation and manufacturing for the private label brand MedMen Red.
MedMen reported its fourth-quarter fiscal 2021 results with revenue of $42 million up 55.4% year over year. The company-wide gross margin rate was 46.9% compared to 40.5% in Q3. MedMen sustained a net loss of $46.2 million up from the $9.7 million in the previous quarter. For the full fiscal 2021 year, the company produced net revenue of $145.1 million down 6.6% year over year. MedMen sustained a net loss of $157.6 million for fiscal 2021 compared to a net loss of $526.5 million the previous year.
MMNFF stock closed at $0.27 on October 13th down 9.09% in the past month. The stock has a 52-week price range of $0.104-$1.47 up 108.17% year to date. According to analysts at Market Beat MMNFF stock has a consensus price target of $0.35 per share. In essence, this would be a 27.7% upside from its last trading price.
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