Market Spotlight: Trending Marijuana Stocks for August 2023
The landscape of the cannabis sector and top marijuana stocks in the United States continues to evolve in August 2023, creating exciting potential for investors. As the market gets traction, keen eyes are turning to the top cannabis stocks deserving of attention. These stocks, driven by change regulations and changing consumer preferences, have the potential to provide significant returns, but the journey requires sophisticated short-term trading tactics and rigorous risk management.
Among the evolving regulatory landscape, some US cannabis companies have emerged as significant actors positioned to benefit from the industry’s expansion. These stocks, ranging from established behemoths to nimble startups, have been on investors’ radar for their ability to ride the waves of regulatory developments and gain general acceptance. However, the market’s volatility highlights the significance of well-calculated short-term trading strategies that take into account both the stocks’ inherent volatility and broader market patterns.
While the appeal of quick profits in the cannabis industry is clear, savvy investors understand that adequate risk management is a must. The industry’s infancy, combined with its sensitivity to regulatory changes, emphasizes the importance of taking a cautious and informed approach. Using risk management techniques, diversification, and a clear exit strategy can protect investors from the market’s inherent uncertainties and dramatic oscillations. Staying current on these top US cannabis stocks and mastering the art of savvy short-term trading will be critical for investors attempting to navigate this exciting yet complex terrain as August progresses.
Top Marijuana Stocks to Watch in August 2023
TerrAscend grows and distributes marijuana throughout the United States and Canada for medical and recreational purposes. The firm is a large cannabis grower in the United States, with facilities in Pennsylvania, New Jersey, and California. The company’s principal goals are to make and market artisan cannabis goods, as well as hemp and cannabis-infused products. TerrAscend has developed several items under the Kind Tree brand in Maryland. The Kind Tree brand will expand its existing product line, which is made in Maryland from 15 different flower varietals, to include vapes and half-gram pre-rolls.
Second Quarter 2023 Financial Highlights
- Net Revenue was $72.1 million, an increase of 3.9% sequentially and 12.7% year-over-year.
- Gross Profit Margin was 50.2%, compared to 48.8% in Q1 2023 and 37.5% in Q2 2022.
- GAAP Net loss from continuing operations was $12.9 million, compared to $19.2 million in Q1 2023 and net income of $16.9 million in Q2 2022.
- EBITDA from continuing operations1 was $6.5 million, compared to $6.1 million in Q1 2023 and $38.4 million in Q2 2022.
- Adjusted EBITDA from continuing operations1 was $12.8 million, compared to $12.2 million in Q1 2023 and $8.8 million in Q2 2022.
- Adjusted EBITDA Margin from continuing operations1 was 17.8%, compared to 17.6% in Q1 2023 and 13.8% in Q2 2022.
- Net cash provided by (used in) operating activities – continuing operations was $1.8 million compared to $10.5 million in Q1 2023 and ($14.9) million in Q2 2022.
- Cash and Cash Equivalents, including restricted cash, totaled $34.5 million as of June 30, 2023, of which $2.5 million was long-term restricted, compared to $33.5 million as of March 31, 2023.
Outlook for 2023
The Company is reiterating its outlook for Net Revenue and Adjusted EBITDA from continuing operations1 for 2023 to be at least $305 million and at least $58 million, respectively, representing year-over-year growth of 23% in Net Revenue and 49% in Adjusted EBITDA from continuing operations1.
TSNDF Stock Performance
TSNDF stock closed at $1.78 on August 21st, up 9.14% in the past three months of trading. Currently, the stock has a 52-week price range of $1.00-$2.50 and is up 6.59% in the last year. According to analysts at CNN Business, TSNDF stock has a 12-month average price target of $2.18 per share. In this case, this would represent an upside of 22.46% from its last trading price of $1.78.
Glass House Brands Inc.
Glass House Brands Inc., a vertically integrated hemp and cannabis company, serves one of the country’s fastest-growing industries. The company focuses on the California market, where it develops distinctive eco-friendly brands to meet the needs of consumers across a variety of industries. Mama Sue Wellness, Glass House Farms, and Forbidden Flowers are some of the company’s well-known products. In September 2021, the corporation intends to invest in a 5.5 million square foot greenhouse in Southern California. The new company’s chief financial officer is Mark Vendetti. PLUS, a well-known California edibles firm, was purchased for $25.6 million in December.
Second Quarter 2023 Highlights
(Unless otherwise stated, all results and dollar references are in U.S. dollars)
- Net Sales of $44.7 million increased 171% from $16.5 million in Q2 2022 and up 54% sequentially from $29.0 million in Q1 2023;
- Gross Profit was $24.4 million compared to $0.3 million in Q2 2022 and $12.0 million in Q1 2023;
- Gross Margin was 55%, compared to 2% in Q2 2022 and 41% in Q1 2023;
- Adjusted EBITDA1 was $9.5 million, compared to $(9.8) million in Q2 2022 and $(0.1) million in Q1 2023;
- Cost per Equivalent Dry Pound of Production3 was $139, a decrease of 12% compared to the same period last year and down 29% sequentially versus Q1 2023;
- Equivalent Dry Pound Production2 was 103,336 pounds, up 311% year-over-year and up 115% sequentially;
- Cash balance was $22.7 million at quarter-end, up 39% from Q1 2023 quarter-end.
GLASF Stock Performance
GLASF stock ended at $3.88 on August 21st, up 9.30% in the last three months of trading. Currently, the stock has been trading in a 52-week range of $1.78-$4.51. GLASF stock is up 82.16% in the last year.
[Read More] Marijuana Penny Stocks on the Radar
Cansortium Inc., a cannabis firm established in Florida, is committed to manufacturing high-quality cannabis. The corporation currently has offices in Texas, Michigan, and Pennsylvania. As a result of a $90 million loan and equity arrangement inked the previous year, Cansortium has expanded into Florida and Pennsylvania. Fruitland Park, Florida, is where the company claims to have a dispensary. Cansortium is one of Florida’s largest dispensary networks, with 30 outlets. Fluent’s Fluent brand provides a comprehensive range of high-end consumables, including full-spectrum extracts, cartridges, and lotions. After the close, the company will report its second quarter result on August 28th.
In the first quarter of 2023, Cansortium’s sales climbed by 12% to $22.1 million, up from $19.7 million in the same period last year. Florida’s revenue grew 9.7% to $18.2 million from $16.6 million. Notably, adjusted gross profit1 climbed 22% year on year to $14.1 million, or 63.9% of revenue, from $11.5 million, or 58.6%, in 2017. Adjusted EBITDA increased 56% year on year to $9.7 million from $6.2 million. Cansortium now runs 31 locations in Florida and plans to open 3-5 more by the end of 2023. Three of these are currently under contract and under construction.
CNTMF Stock Performance
On August 21st, CNTMF stock finished at $0.0654, down 19.26% in the past three months of trading. The stock is now trading in a 52-week price range of $0.065-$0.2550 and is down 60.95 percent in the last year.
Unlocking Opportunity: Top-Ranked Marijuana Stocks for Smart Investors
In conclusion, August 2023 presents a dynamic landscape for those looking to invest in marijuana stocks. As legislative changes shape the industry, staying informed about these marijuana stocks can benefit investors seeking growth. However, it’s essential to remember that the marijuana market remains volatile, demanding prudent risk management strategies to navigate it successfully.
As the green wave of legalization and acceptance gains momentum, these top marijuana stocks offer a glimpse into the future of the industry. While the potential for significant gains is evident, investors must approach this market with a blend of optimism and caution. By watching these leading pot stocks and embracing innovative short-term trading practices, investors can position themselves to seize opportunities while minimizing the inherent risks associated with this evolving sector.
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