Top US Cannabis Companies to Track Before November 2023
The United States cannabis industry has been steadily gaining momentum in recent years, and as we approach November 2023, there is heightened anticipation for significant growth in this sector. The rapid expansion of legalized cannabis markets across various states has created a fertile ground for investment opportunities. For those seeking to capitalize on the burgeoning marijuana market, cannabis penny stocks can be a promising avenue. These low-priced stocks offer substantial potential for gains, making them attractive options for both day traders and swing traders looking to capitalize on short-term price fluctuations. However, navigating this volatile landscape requires a keen understanding of technical indicators and market trends.
With cannabis legalization spreading across the United States, the industry is set for substantial growth in the coming months and years. New regulations and increasing public acceptance have generated many opportunities for marijuana-related businesses. Given the positive revenue projections and expanding market size, investors are eyeing the sector with optimism. As we approach November 2023, astute traders are looking for penny stocks that could yield impressive returns in the short term.
Both day traders, who buy and sell within the same day, and swing traders, who aim to capture price swings over a few days or weeks, actively explore the cannabis penny stock landscape. They employ a range of technical indicators, such as moving averages, RSI (Relative Strength Index), and MACD (Moving Average Convergence Divergence), to make well-informed trading decisions in this dynamic and rapidly evolving market. By staying vigilant and strategically monitoring these top marijuana stocks, traders can position themselves for potential gains before November 2023.
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High-Growth Potentials: Top US Marijuana Penny Stocks for November 2023
- Ayr Wellness Inc. (OTC: AYRWF)
- Jushi Holdings Inc. (OTC: JUSHF)
- Goodness Growth Holdings, Inc. (OTC: GDNSF)
Ayr Wellness Inc.
In Florida, Ayr Wellness Inc. is a well-known cannabis company. Sixty-one of the company’s seventy marijuana-related enterprises are located in Florida. To expand in Illinois, the company purchased Herbal Remedies Dispensaries, LLC. Businesses in Ayr, Massachusetts, may become more appealing due to adult marijuana use. In Pennsylvania, the business has opened its sixth connected dispensary. Ayr planned to start construction on its 86,000-square-foot processing and growing plant in December, pending regulatory approval in Arizona. The company bought Levia Cannabis Infused Seltzer in 2022, a significant investment in the beverage industry.
Second Quarter 2023 Financial Highlights
AYR, in its press release for the second quarter of 2023, revealed several significant highlights. The company reported a substantial year-over-year increase in revenue, climbing by 18% to reach $116.7 million. This growth excludes income from discontinued operations, underlining the company’s core financial strength.
Furthermore, AYR achieved a remarkable milestone by delivering a record-breaking adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $29.4 million. This figure represents an impressive 78% year-over-year surge and a 12% sequential increase. Equally noteworthy is the adjusted EBITDA margin, which stood at a solid 25%.
The company’s financial performance showed promising signs as it substantially improved its GAAP (Generally Accepted Accounting Principles) Loss from Operations. Year-over-year, this loss was reduced by an impressive 81%, and sequentially, it improved by 79%. When excluding discontinued operations, the GAAP Loss from Operations reached $(4.5) million.
Looking ahead, AYR remains committed to securing its financial well-being and strives for sustainable, long-term growth and profitability across all the markets it operates in. The company is optimistic about the second half of 2023 and the year 2024, anticipating growth in both revenue and adjusted EBITDA. Moreover, they aim to generate positive GAAP cash flow from operations for the entire calendar year of 2023.
AYRWF Stock Performance
AYRWF stock closed on October 25th at $1.64, down 42.46% in the last month of trading. The stock has a 52-week price range of $0.5660-$4.17 and is up 36.67% year to date.
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Jushi Holdings Inc.
Jushi Holdings Inc. is a hemp and cannabis company based in the United States, growing its market share in the medical and recreational marijuana markets. The company primarily aims to provide branded cannabis and hemp-derived products to the US market. The BEYOND/HELLO brand is used in 34 dispensaries nationwide that are owned and operated by Jushi. Furthermore, Jushi has 31 retail licenses in the nation, and Beyond/Hello, its top national cannabis dispensary brand, is expanding both online and off. By acquiring NuLeaf Inc. in April, the company was able to expand its vertically integrated operations into Nevada.
Second Quarter 2023 Financial Highlights
In a recent press release, the company shared crucial financial highlights for the quarter. They reported total revenue amounting to $66.4 million, indicating their income for the period.
What’s particularly noteworthy is the impressive rise in gross profit margin, which stood at 46.0%. Comparatively, in the same quarter last year (Q2 2022), it was 36.7%, and in the previous quarter (Q1 2023), it was 42.9%. This substantial improvement in the gross profit margin reflects the company’s growing efficiency and profitability.
However, the company faced a net loss of $14.0 million for this quarter. This is a significant shift from the net income of $12.1 million in the second quarter of 2022 (Q2 2022) and a net loss of $12.4 million in the first quarter of 2023 (Q1 2023). The fluctuation in net earnings highlights the dynamic nature of the business environment.
EBITDA and Cash Assets
On a positive note, the company achieved an adjusted EBITDA of $12.6 million. This marks a notable improvement of $12.1 million compared to last year’s period and a sequential increase of $5.0 million. This indicates a strong financial performance in earnings before accounting for interest, taxes, depreciation, and amortization.
The press release also disclosed the company’s financial position, indicating they held cash, cash equivalents, and restricted cash amounting to $32.1 million at the end of the quarter. This suggests that they have a robust financial foundation to support their operations and investments.
In summary, the company posted revenue of $66.4 million for the quarter and experienced a substantial increase in gross profit margin. However, they reported a net loss of $14.0 million, which is a deviation from their past financial performance. On the positive side, their adjusted EBITDA reached $12.6 million, showcasing solid earnings. Additionally, their financial stability is underlined by their cash and cash equivalents of $32.1 million. These financial results provide a snapshot of the company’s performance for the quarter.
JUSHF Stock Performance
JUSHF stock closed at $0.5710 on October 25th, down 23.36% in the last month of trading. The stock has a 52-week price range of $0.350-$2.34 and is down 25.07% year to date.
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Goodness Growth Holdings, Inc.
Goodness Growth Holdings, Inc. is a medical cannabis company in the United States. The company produces pharmaceutical-grade cannabis extracts, cultivates marijuana in environmentally friendly greenhouses, and distributes its goods through a network of independent retail shops operating under the Goodness Growth and other brands. As of March 11, 2022, it had eight dispensaries in Minnesota, four in New Mexico, four in New York, and two in Maryland. Additionally, it supplied wholesale cannabis goods to numerous organizations in New York, Arizona, Maryland, and Minnesota. Goodness Growth Holdings, Inc. replaced Vireo Health International Inc. as the company’s name in June 2021. Minneapolis, Minnesota, is home to Goodness Growth Holdings, Inc.’s corporate headquarters.
Second Quarter 2023 Financial Highlights
GAAP Revenue:
- In June 2023, GAAP revenue reached $20.2 million, reflecting a 4.2% decrease from June 2022.
- Over the six months ending in June 2023, GAAP revenue amounted to $39.3 million, marking a 7.0% increase from the same period in 2022.
Revenue (excluding discontinued operations):
- For June 2023, revenue, excluding discontinued operations, was $19.2 million, indicating a 10.6% increase from June 2022.
- Over the six months ending in June 2023, this figure amounted to $37.3 million, reflecting a substantial 19.8% growth compared to the same period in 2022.
GAAP Gross Profit:
- The GAAP gross profit for June 2023 was $9.3 million, representing a 10.0% decline from June 2022.
- Over the six months ending in June 2023, the gross profit reached $18.9 million, showing a remarkable 46.6% increase from the same period in 2022.
Gross Profit Margin:
- The gross profit margin stood at 46.2% in June 2023, exhibiting a decrease of 300 basis points (bps) from June 2022.
- For the six months ending in June 2023, the gross profit margin was 48.0%, marking an impressive increase of 1,300 bps from the same period in 2022.
Operating Income (Loss):
- In June 2023, the company reported an operating loss of ($1.0) million, which was a significant drop of 438.1% from the operating income of $0.3 million in June 2022.
- Over the six months ending in June 2023, the operating loss amounted to ($0.7) million, compared to a loss of ($7.5) million in the same period in 2022 (not meaningful or “NM” improvement).
EBITDA:
- In June 2023, EBITDA reached $2.8 million, reflecting an impressive 156.5% increase from June 2022.
- Over the six months ending in June 2023, EBITDA amounted to $4.3 million, marking a substantial improvement from a negative EBITDA of ($9.6) million in the same period in 2022 (NM improvement).
GDSNF Stock Performance
On October 25th, GDNSF stock closed at $0.19, up 5.56% in the last trading month. The stock is currently trading in a 52-week price range of $0.091-$0.45 and is up 18.75% year to date.
Cannabis Stocks And Fourth Quarter 2023 Opportunities
In conclusion, the US marijuana industry’s landscape is ripe with opportunities, and the upcoming month of November 2023 presents a unique window for investors and traders to explore promising penny stocks. With the continued expansion of legalized cannabis markets and the industry’s increasing acceptance, there’s no shortage of growth potential. By closely monitoring these top US marijuana penny stocks and utilizing technical indicators for strategic short-term trading, investors can seize the chance to capitalize on the market’s volatility and capture potential gains.
As we navigate the fast-paced world of cannabis penny stocks, it’s essential to remember that these investments carry inherent risks due to their speculative nature. Therefore, conducting thorough research, staying informed about industry developments, and diversifying your portfolio is imperative. Whether you’re a day trader looking to profit from intraday movements or a swing trader seeking to ride the market’s momentum, these penny stocks can offer a compelling pathway to financial growth. Overall, November 2023 is pivotal for those keen on the evolving US cannabis industry.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
