Top Marijuana Stocks for Short-Term Traders: August 2023 Watchlist
As we approach the midway point of 2023, the cannabis industry continues to garner attention from investors seeking lucrative opportunities. With increasing legalization efforts across the United States and beyond, marijuana stocks are poised for potential growth and profitability.
Overall, with the rapid rise of medicinal and recreational marijuana markets in recent years, the cannabis sector has seen incredible advancements. Investors seeking to profit from short-term profits in this thriving business must be watchful and informed on the top marijuana stocks with significant growth prospects. Companies with a track record of successfully managing regulatory hurdles and extending their market presence will likely outperform their peers. Shrewd investors might uncover good chances for short-term trading techniques that capitalize on market swings by evaluating financial statements, product pipelines, and partnerships.
The growing legalization trend in the United States is one of the primary catalysts fueling the growth of marijuana stocks in 2023. The possibility of federal legalization in the United States lurks on the horizon, giving an enormous potential for cannabis entrepreneurs to expand their operations and reach a more extensive user base. As regulatory hurdles continue to fall, investors are looking forward to the potential gains that prominent marijuana stocks may achieve due to this progressive trend.
Investors can position themselves advantageously to capitalize on the industry’s development potential in the run-up to August 2023 by keeping a close eye on the expanding cannabis market and employing well-informed short-term trading tactics.
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Short-Term Traders’ Guide: Top Marijuana Stocks to Follow Before August 2023
Glass House Brands Inc.
Glass House Brands Inc., a vertically integrated hemp and cannabis firm, serves one of the fastest-growing industries in the country. The company concentrates on the California market, where it creates distinctive eco-friendly brands to fulfill the needs of consumers in a number of industries. Some of the company’s well-known goods include Mama Sue Wellness, Glass House Farms, and Forbidden Flowers. The company plans to invest in a 5.5 million square foot greenhouse in Southern California in September 2021. Mark Vendetti is the new company’s chief financial officer. PLUS, a well-known California edibles brand, was purchased for $25.6 million in December.
Glass House reported net revenues of $29.0 million in the first quarter of 2023, a 108% rise over the same period in 2022 but a 10% sequential dip over the same time in 2022, primarily due to seasonality. This performance exceeded our Q1 projection range of $27 million to $29 million. Furthermore, wholesale biomass revenue climbed 182% from the first quarter of 2022 to the fourth quarter of 2022 but declined 7% sequentially. Product sales rose 179% year on year in the third quarter, reaching approximately 49,923 pounds of equivalent dry weight.
Consolidated gross profit increased from $2.3 million, or 17%, in the first quarter of 2022 to $10.2 million, or 32%, in the fourth quarter, to $12.0 million, or 41% of net revenues. This gross margin percentage has been at its greatest level since the second quarter of 2022, the final quarter before wholesale prices began to decline precipitously.
Q2 2023 Outlook
The company estimates revenue of $38 to $40 million. Due to the ongoing unfavorable retail environment, it expects CPG and Retail revenue to be identical to Q1. The rise above Q1 23 is mostly due to a seasonal increase in biomass output as a result of higher sunshine levels in Q2 compared to Q1. Based on trends through early May, we expect the average wholesale biomass selling price to be $325 per pound.
GLASF Stock Performance
GLASF stock ended at $3.05 on July 21st, down 23.37% in the last month of trading. In this case, the stock has been trading in a 52-week range of $1.78-$4.51. GLASF stock is up 59.69% year to date.
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, operating in Pennsylvania, New Jersey, and California. The company’s principal goals are to create and market artisan cannabis goods and hemp and cannabis-infused products. TerrAscend has developed many items under the Kind Tree brand in Maryland. Vapes and half-gram pre-rolls will be added to the Kind Tree brand’s current product line, manufactured in Maryland from 15 different flower varietals.
First Quarter 2023 Financial Highlights
- Net Revenue was $69.4 million, an increase of 0.6% sequentially and 42.8% year-over-year.
- Gross Profit Margin was 48.8%, compared to 44.6% in Q4 2022 and 32.1% in Q1 2022.
- Adjusted Gross Profit Margin1 was 49.0%, compared to 45.3% in Q4 2022 and 40.3% in Q1 2022.
- GAAP Net loss from continuing operations was $19.2 million, compared to $2.0 million in Q4 2022 and $13.8 million in Q1 2022.
- EBITDA from continuing operations1 was $6.1 million, compared to $30.0 million in Q4 2022 and $1.1 million in Q1 2022.
- Adjusted EBITDA from continuing operations1 was $12.2 million, compared to $12.2 million in Q4 2022 and $4.9 million in Q1 2022.
- Adjusted EBITDA Margin from continuing operations1 was 17.6%, compared to 17.7% in Q4 2022 and 10.1% in Q1 2022.
- Cashflow provided by (used in) continuing operations was $8.4 million compared to $7.3 million in Q4 2022 and ($18.8) million in Q1 2022.
- Free cash flow was a positive $5.9 million compared to ($6.9) million in Q4 2022 and ($23.0) million in Q1 2022.
- Cash and Cash Equivalents totaled $32.9 million as of March 31, 2023, as compared to $26.2 million as of December 31, 2022.
TSNDF Stock Performance
TSNDF stock closed at $1.545 on July 21st, down 9.12% in the past month of trading. In this case, the stock has a 52-week price range of $1.00-$2.88 and is up 36.73% year to date. According to analysts at CNN Business, TRSSF stock has a 12-month average price target of $2.46 per share.
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MariMed Inc., a multi-state cannabis operator, strives to improve people’s daily lives through high-quality products, actions, and principles. The Company creates, owns, and maintains state-licensed cannabis facilities from seed to sale that are examples of excellence in horticultural principles, cannabis cultivation, cannabis-infused products, and dispensary operations. MariMed has an experienced management team that has led to the Company’s and its managed business divisions’ constant growth and success. The Company’s top-selling and award-winning goods and brands, including Betty’s Eddies, Nature’s Heritage, InHouse, Bubby’s Baked, K Fusion, Kalm Fusion, and Vibrations: High + Energy, contain proprietary formulations developed by company technicians. The company will release its financial results for the second quarter of 2023 after the markets close on August 2, 2023.
First Quarter 2023 Financial Highlights
- Revenue: The Company generated $34.4 million in revenue in 2023, showing a growth from $31.3 million in 2022.
- GAAP Gross Margin: The GAAP gross margin for 2023 was 45%, a decrease from the 54% recorded in 2022.
- Non-GAAP Gross Margin: The non-GAAP gross margin for 2023 was 46%, also lower than the 54% achieved in 2022.
- GAAP Net (Loss) Income: In 2023, the Company reported a net loss of $0.7 million, whereas, in 2022, they had a net income of $4.2 million.
- Non-GAAP Net Income: The non-GAAP net income for 2023 was $0.3 million, which was a decrease from $6.9 million in 2022.
- Non-GAAP Adjusted EBITDA: The Company’s non-GAAP adjusted EBITDA was $7.1 million in 2023, down from $10.4 million in 2022.
- Non-GAAP Adjusted EBITDA Margin: The non-GAAP adjusted EBITDA margin for 2023 was 21%, compared to the 33% margin in 2022.
2023 Financial Guidance
- MariMed remains committed to its proven strategic growth plan and continues to operate some of the best facilities in the cannabis industry. The Company’s guidance for the full-year 2023 is unchanged:
- Revenue of at least $150 million;
- Gross margin in line with the full year 2022, which was about 48%;
- Non-GAAP Adjusted EBITDA of at least $35 million;
- Capital expenditures of $30 million.
MRMD Stock Performance
MRMD stock closed at $0.395 on July 21st, up 1.28% in the past month of trading. In this case, the stock has a 52-week price range of $0.28-$0.77 and is up 10.89% year to date. According to analysts at CNN Business, MRMD stock has a 12-month average price target of $1.00 per share.
Marijuana Stocks with Short-Term Potential
Ultimately, the cannabis sector landscape presents an opportunity for short-term traders looking to profit from the momentum before August 2023. Leading marijuana stocks could experience significant volatility in the coming months as legalization efforts continue in the United States. In addition, traders can construct a well-informed watchlist of top-performing marijuana stocks by carefully reviewing financial data, market trends, and regulatory events, increasing their chances of generating attractive short-term gains.
However, short-term traders must exercise caution and apply appropriate risk management measures when navigating the volatile cannabis market. The potential profits are appealing, but the risks exist as well. Making intelligent trading selections will require staying current on breaking news, industry developments, and shifts in market sentiment. Short-term traders can position themselves for opportunities and obtain returns from the best marijuana stocks before August 2023 by combining intense research with good timing. Remember that short-term trading success needs awareness, research, and a deep understanding of the dynamics supporting cannabis investments.
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