Best Cannabis Stocks In Q4 2021
In today’s market stocks began to see some upside as lawmakers reach an agreement to extend the government’s debt limit through the start of December. Some of the top marijuana stocks to invest in have also recovered some of the value it lost this week. One way many traders are taking advantage of the recent market volatility is by trading marijuana penny stocks. For those not familiar with penny stocks these are any stocks trading under the $5 stock price. Known for being a higher-risk investment these stocks tend to have much more price fluctuations in the market.
Investors take advantage of this by using short-term trading methods like swing trading, and day trading. Using these methods seasoned investors can establish larger positions in a penny stock with less capital. Once these stocks move, they can secure a bigger return with smaller percentage gains. The high-risk-reward trades require more attention to the positions which can move rapidly in the market.
Researching a company and studying how a stock performs in the market can help traders solidify the best returns. Some investors watch for increases in volume and follow charts to find penny stocks that have the potential to break out. As new retail investors enter the market it’s important to get a better understanding of how to trade properly before starting a position.
Penny Stocks And Researching Possible Trades
For the past seven months, the cannabis sector has experienced significant declines in the market. From these lower levels, many analysts are beginning to forecast some upside for traders. Finding the best marijuana penny stocks for your list in October could add future value to your portfolio. We can take a closer look at some penny-pot stocks with current potential. Making a watchlist of the best marijuana stocks right now is one way investors keep a close eye on different equities.
As top cannabis stocks begin to see some upward momentum in October Congress could have a potential catalyst for the cannabis market with marijuana legalization and cannabis banking reform. Many companies in the US and Canada are waiting for the US to pass legalization and now financial advisors are putting more pressure on lawmakers to act. Let’s look at 2 top marijuana penny stocks to watch right now.
Best Cannabis Penny Stocks For Your List In October
Acreage Holdings, Inc.
Acreage Holdings, Inc. is a US multi-state operator with cannabis cultivation and retail facilities across America. In particular, Acreage has a partnership and a possible acquisition with Canadian giant Canopy Growth Corporation (NASDAQ: CGC). As a result, this partnership could make Acreage instrumental in the Canadian cannabis companies’ entry into the US cannabis industry. Acreage has established a large presence in New York and New Jersey and could see significant growth in the coming years from the growing markets there. At the present time, Acreage operates the maximum number of dispensaries allowed in New Jersey and is working on completing its New Jersey cultivation facility. In October the company acquired cultivation, processing, and retail operator in Ohio. Specifically, this would give Acreage a 70,000 sq. foot cultivation facility and 5 operating retail stores.
In August Acreage delivered its second-quarter 2021 results revenue growth of 63% and improvements to net loss. Generally speaking, consolidated revenue was $44.2 million up 15% sequentially. As a result, the company produced gross margins of 54% an increase of 12.6% year over year. Acreage had a net loss in Q2 2021 of $2.6 million an improvement from the $37.2 million year over year. Additionally, the company saw Adjusted EBITDA in Q2 2021 of $8.1 million compared to an EBITDA loss of $6.5 million year over year.
ACRHF stock is trading at $2.17 on October 7, 2021, down 24.23% in the last month. Currently, the stock has a 52-week price range of $2.05-$9.00 and is down 30.10% year to date. According to analysts at Market Beat ACRHF stock has a consensus price target of $7.00 per share. In this case, this would represent an upside of 233% from its current trading price.
4Front Ventures Corp.
4Front Ventures is a national MSO and retailer advancing in mass-produced low-cost quality branded cannabis products in the US. At the present time, the company distributes a portfolio of over 25 cannabis brands. To highlight, 4Front has dispensaries in Illinois, Massachusetts, California, Michigan, and Washington state. Recently, 4Front closed the first phase of a 558k sq. ft. cultivation and production facility in Illinois. Specifically, the deal is backed by Innovative Industrial Properties, Inc. (NYSE:IIPR) and estimates construction to be complete by Q2 2022.
4Front reported its Q2 2021 financial results with systemwide pro forma revenue of $34.4 million versus sales of $31.4 million sequentially. As a result, the company delivered Q2 2021 adjusted EBITDA of $7.5 million an increase of 27% sequentially. Notably, 4Front reaffirmed its full-year guidance of pro forma revenue of $170-$180 million and adjusted EBITDA of $40-$50 million. On October 7th the company acquired New England Cannabis Corporation a best-in-class cannabis operator in Massachusetts. The acquisition includes a 55,000 sq. foot cultivation facility and more than doubles the companies it flower producing in the state.
FFNTF stock closed on October 7, 2021, at $1.04 down 13.68% in the past six months. The stock has a 52-week price range of $0.50-$1.98 and is up 10.99% year to date. According to analysts at Stock Invest FFNTF stock is expected to decline by 18.04% during the next 3 months. A buy signal was issued for FFNTF stock on Monday, September 20th and so far, the stock has risen 4.12%. As the cannabis sector begins to recover these could be top marijuana stocks for your watch list in October.