Top Marijuana Stocks Shaping December 2023

High Potential: Leading Cannabis Stocks for December 2023

The cannabis industry and top marijuana stocks in the United States are witnessing unprecedented growth. Recent statistics reveal that the U.S. cannabis market is expected to expand significantly, with projected revenues reaching billions of dollars. This surge is fueled by increasing legalization and a broader acceptance of marijuana use for both medical and recreational purposes. The market’s robust expansion offers lucrative opportunities for investors. This includes those looking for short-term gains through active trading and those aiming for long-term growth.

This year, the cannabis sector has experienced a notable shift in momentum. The change is attributed to evolving regulatory landscapes and increasing consumer demand. As a result, certain marijuana stocks have emerged as top contenders for investors to watch. These stocks stand out due to their strong market presence, innovative products, and strategic partnerships. Both short-term traders and long-term investors are finding these stocks appealing. They offer diverse opportunities ranging from quick profits to sustainable growth. The dynamic nature of the cannabis market in 2023 makes it an exciting time for market participants.

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Top Marijuana Stocks to Keep an Eye on in December 2023

  1. Curaleaf Holdings, Inc. (OTC: CURLF)
  2. Planet 13 Holdings Inc. (OTC: PLNH)

Curaleaf Holdings, Inc.

Curaleaf Holdings, Inc. stands as a prominent player in the cannabis industry. Founded in 2010, the company is headquartered in Wakefield, Massachusetts. It specializes in the production and distribution of cannabis products. Their offerings include a wide range of both recreational and medicinal cannabis items. Curaleaf operates an extensive network of dispensaries across the United States. As of 2023, they boast over 130 retail locations. Their presence is particularly strong in states like Florida, New York, and California. These states have significant markets for cannabis products.

The company’s growth strategy focuses on expanding its footprint across key cannabis markets in the U.S. Curaleaf’s expansion efforts have been robust, especially in states with newly legalized cannabis. They have successfully navigated the complex regulatory environments in various states. This has allowed them to establish a strong market presence. Curaleaf’s diverse product portfolio and widespread retail network position it as a leader in the U.S. cannabis sector. Their strategic approach has played a crucial role in their success.

Third Quarter 2023 Financial Highlights

In the third quarter of 2023, Curaleaf Holdings, Inc. experienced a mixed financial performance. The company’s net revenue was $333.2 million, a 2% increase from the previous year’s $325.8 million. This growth figure excludes $3.5 million from discontinued operations. Despite this year-over-year increase, there was a marginal decline in revenue of less than 1% from the previous quarter. The company reported a gross profit of $150.1 million. This results in a gross margin of 45%. Their adjusted gross profit was higher at $152.2 million. This led to an adjusted gross margin of 46%.

However, Curaleaf reported a significant net loss of $92.3 million. This translates to a net loss per share of $0.13. The adjusted net loss from continuing operations was $70.8 million, or $0.10 per share. Adjusted EBITDA for the quarter was $75.3 million, representing 23% of their revenue. The company’s strategic decisions included exiting operations in Michigan and Kentucky. This resulted in a $22 million non-cash impairment charge and a $3 million adjustment in EBITDA. The quarter ended with Curaleaf holding $118.1 million in cash. They also reported a free cash flow of $33.4 million from continuing operations.

First Nine Months of 2023

Over the first nine months of 2023, Curaleaf Holdings, Inc. displayed a mix of growth and challenges. The company’s net revenue grew by 7% year-over-year, reaching $1,001.4 million. This marks a significant increase. The gross profit for this period stood at $458.3 million. The gross margin was consistently strong at 46%. However, there was a notable 9% decrease in adjusted gross profit compared to the previous year. The adjusted gross profit totaled $464.7 million. Despite this, the adjusted gross margin remained steady at 46%.

Operating cash flow was robust, amounting to $73.0 million. Despite these positive aspects, Curaleaf faced substantial financial losses. The company reported a net loss of $218.0 million. This equates to a net loss per share of $0.31. The adjusted net loss was even more significant at $178 million. This corresponds to an adjusted net loss per share of $0.25. Adjusted EBITDA over the nine months was $221.9 million, making up 22% of revenue. These financials illustrate the dynamic nature of the cannabis market. They highlight Curaleaf’s ability to adapt and persevere through varying market conditions.

CURLF Stock Performance

On December 8th, CURLF shares closed at $4.17, up 32.80% in the past month of trading. The stock is currently trading in a 52-week range of $2.19-$5.80 and is down 2.96% year to date.

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Planet 13 Holdings Inc.

Planet 13 Holdings Inc. is a well-known cannabis corporation based in Las Vegas, Nevada. Known for its cutting-edge and immersive approach to cannabis shopping, Planet 13 runs the “Planet 13 Superstore,” one of the biggest cannabis shops in the world. Serving both medical and recreational customers, the company focuses on providing a broad variety of cannabis products, including edibles, extracts, flower, and more.

As of right now, Planet 13 is mostly active in Nevada, where it runs its main dispensary in Las Vegas. This flagship location’s distinctive and immersive retail idea has made it a well-known cannabis destination, attracting tourists from all over the world. Planet 13 is a major player in the cannabis retail market because of its emphasis on developing an upscale and engaging shopping experience.

The company’s commitment to providing a diverse and high-quality product selection, coupled with its exceptional customer experience, has contributed to its reputation as a leader in the cannabis retail sector. Planet 13’s innovative approach to cannabis retail has not only solidified its presence in Nevada but has also positioned it as a model for future cannabis dispensaries looking to elevate the customer experience.

Financial Highlights – Q3 – 2023

In its Q3 2023 financial report, Planet 13 Holdings Inc. revealed a mixed performance in a number of important categories. With $24.8 million in revenue for the quarter, less than 3.3% of what was earned at the same time last year. Reduced sales at the SuperStore and a minor reduction in Nevada’s wholesale revenue were blamed for the downturn. Notwithstanding this, gross profit rose to $11.1 million, mainly as a result of lower product discounting at the retail level, with a gross margin of 44.7%, up from 41.2%.

Nonetheless, the business recorded a notable rise in overall costs, amounting to $55.1 million, mainly due to a $39.6 million one-time non-cash impairment charge. The entire cost, without the impairment, came to $15.4 million. As a result, Planet 13 recorded a $46.0 million net loss for the quarter, as opposed to a $6.3 million loss in the same period the year prior. This rise in net loss was mostly caused by the impairment charge. Additionally, adjusted EBITDA decreased from $0.5 million to $0.2 million, with increased gross margin helping to offset a lower adjusted EBITDA margin brought on by operating leverage.

Turning to the balance sheet, Planet 13 reported cash reserves of $36.8 million, down from $52.4 million at the end of 2022. Total assets decreased from $233.6 million to $178.4 million, while total liabilities remained relatively stable at $41.5 million.

In recent developments, Planet 13 announced its intention to acquire VidaCann, a significant move to expand its presence. The change in domicile to Nevada and a change in the OTC trading symbol were completed in September 2023. Furthermore, the company unveiled plans for the Dazed! Consumption Lounge on November 1, 2023, indicating its commitment to enhancing customer experiences.

PLNH Stock Performance

PLNH stock closed on December 8th at $0.8239, up 7.70% in the last month of trading.  Currently, the stock has a 52-week price range of $0.451-$1.24 and is up 35.07% year to date.

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Top Marijuana Investments for 2023

As December 2023 approaches, investors eyeing the top marijuana stocks should consider using technical indicators. In general, these tools offer valuable insights into market trends and potential turning points. In addition, popular indicators like moving averages, RSI (Relative Strength Index), and MACD (Moving Average Convergence Divergence) can help in making informed decisions. They can identify entry and exit points in the volatile cannabis market. Additionally, understanding chart patterns and volume trends can provide a deeper analysis. This analysis aids in distinguishing between short-lived spikes and sustainable growth trends.

Moreover, proper risk management is crucial when trading in the cannabis sector. Given the industry’s susceptibility to regulatory changes and market sentiment, diversification is key. Investors should avoid putting all their capital into a single stock. Setting stop-loss orders can also limit potential losses. It’s important to stay updated with sector news and regulatory developments. These can significantly impact cannabis stock prices. In summary, combining technical analysis with prudent risk management strategies can enhance the potential for profitable trading in the dynamic cannabis market.

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