Are Marijuana Penny Stocks A Good Investment?
Are you looking for top marijuana stocks to buy while the cannabis sector is at its lowest levels in 2021? For several months the declines in the best cannabis stocks to invest in have created an opportunity for new investors looking to gain exposure to the cannabis industry. One way many investors are taking advantage of the price swings in the cannabis sector is by trading marijuana penny stocks. For those not familiar with penny stocks these are stocks that trade under the $5 price point.
In general cannabis penny stocks are considered a higher-risk investment and many investors prefer trading them on a short-term basis. Some traders use day trading and swing trading methods to produce returns taking advantage of the market volatility. In 2021 cannabis penny stocks rallied in the first quarter establishing new highs in mid-February. Now after about nine months of declines in the cannabis sector it could be time for marijuana stocks to rebound.
One potential catalyst that is gaining more momentum on Capitol Hill is federal marijuana legalization, decriminalization, and cannabis banking reform. Although this is one of the main reasons that top pot stocks have experienced this current downtrend once legalization happens it could create significant upside. This year many leading cannabis companies have delivered strong revenue growth and expanded in the growing US market.
Understanding The Stock Market And The Cannabis Sector
Before investing in marijuana penny stocks, it’s important to do your own research on a company to find the top performers to invest in. Researching a company’s financials and studying how the stock performs in the market can help you produce the best returns from your investments. In general, learning how to read charts and analyze stocks in the market will help you establish the most gains from your trades.
At the present time, In the US leading cannabis companies have seen substantial growth that could continue for the next five years. As we head into November, we could see some potential upside from pot stocks. Although earnings result for cannabis companies has not helped cannabis stocks in the market next month could be different. Let’s look at 2 top marijuana penny stocks for your watchlist this week.
Best US Marijuana Penny Stocks For Your November Watchlist
Lowell Farms Inc.
At the present time, Lowell Farms Inc is a company establishing a large presence in the California cannabis market. In general, the company has advanced production capabilities, grows artisan craft cannabis, and built a portfolio of award-winning licensed cannabis brands for cannabis consumers. Recently, the company established a licensing agreement with Ascend Wellness Holdings. Specifically, the two companies will bring Lowell Smokes brand to dispensary locations in Massachusetts and Illinois. Additionally, the company announced its iconic Lowell Smokes pre-roll packs will be available in Illinois. Now, Lowell Smokes will be available to Illinois consumers throughout 8 retail locations in the state.
In general, Lowell Farms reported record cultivation output and record second-quarter 2021 revenue of $15.2 million. The company sustained an operating loss of $473 thousand an improvement from the $.8 million loss in Q2 2020. As a result, the company produced gross margins of 38% 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. In September the company debuted a limited-edition Hash Wrap at the Hall of Flowers trade show. LOWLF stock closed on October 26th at $0.87 down 13.45% in the past month. Currently, the stock has a 52-week price range of $0.74-$2.149 and is down 19.53% year to date.
MariMed Inc. is a cannabis multi-state operator that is developing its own brand state-licensed cannabis facilities and dispensary operations. In September MariMed announced the appointment of Steve West as Vice President of investor relations. The company will announce its third-quarter 2021 results on November 15th after the market close.
MariMed delivered second-quarter 2021 earnings with revenue of $32.6 million up 239% year over year. In general, the company has an Adjusted EBITDA of $12.3 million up 440% from the prior year. In addition, MariMed increased guidance for revenue between $100-$118 million and Adjusted EBITDA of $32 million. The company reported a net income in Q2 of $7.6 million versus a net loss of $1.1 million in Q2 2020. MRMD closed on October 26th at $0.7335 up 60.83% year to date.
Words From The CEO
“We are extremely pleased with our continued improving financial performance during the second quarter. We continue to report some of the strongest revenue and EBIDTA growth in the entire cannabis industry. Our strong financial position is the result of our operational excellence combined with our financial discipline. I could not be more confident in our ability to maintain our trajectory to be a top-tier MSO and deliver improved stockholder value as we continue to execute on our Strategic Plan.”
Bob Fireman, CEO, and President of MariMed
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