Different Ways To Invest In Marijuana Stocks In 2021
There are many different top marijuana stocks that can give investors exposure to the growing cannabis industry. In May cannabis stocks have seemingly begun to regain some market value after several months of declines. One area that is considered a high-risk high reward part of the cannabis sector is top marijuana penny stocks. When we talk about penny stocks technically these are stocks trading below $5 a share. At the beginning of 2021 marijuana penny stocks saw the most upward momentum in the market.
In particular, after February 10th the cannabis sector began losing most of the gains it achieved in the first quarter. Currently many have settled around the price range they ended 2020 with and could hold future value. With better momentum for the cannabis sector in the first two weeks of May, top cannabis penny stocks could begin to see gains in the market. One factor that has a tremendous impact on marijuana stocks to invest in is US cannabis reform and legalization.
Recently Chuck Schumer reiterated again that he would be introducing a cannabis reform and legalization bill soon. One thing to make note of in the interview with The Ringer is that Schumer wants to proceed with reform and legalization before pushing the banking act that’s already passed in the house and made its way to the Senate. In essence, this strengthens the possibility of reform happening in 2021 and could potentially jump-start the cannabis sector.
Revenue Strength In The US Cannabis Industry
In the meantime, the cannabis market is growing in the US and Canada at a rapid pace. Generally, many leading companies have reported strong revenue growth in 2020 and this trend has continued in the US for most companies in their first-quarter earnings. One phenomenon that’s occurring with cannabis companies right now is the high rate of mergers and acquisitions. For the most part, M&As have helped speed up the process of expanding in a growing US market.
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In regard to the best marijuana penny stocks right now some are still up double-digit percentage gains for 2021. For investors, it’s important to do some due diligence on a company before making an investment. With this in mind, we can take a closer look at 2 of the best marijuana penny stocks to add to your watchlist this week.
Marijuana Stocks To Watch:
- 4Front Ventures Corp. (OTC: FFNTF)
- Red White & Bloom Brands Inc. (OTC: RWBYF)
4Front Ventures Corp.
4Front Ventures Corp. owns and operates cannabis facilities in the US and distributes over 25 cannabis brand products nationwide. With recent expansions, 4Front now has dispensary locations in Illinois, Massachusetts, California, Michigan, and Washington state. In its latest earnings, 4Front delivered Q4 and fiscal year 2020 results with Q4 pro forma revenue of $25 million and full-year proforma sale of $88.1 million. The company also reaffirmed its full-year 2021 guidance and estimated Systemwide Pro Forma Revenue of $170-180 million.
On May 24th 4Front is expected to release its Q1 2021 results after the close and could possibly deliver some positive earnings. If the companies Q1 performance is anything like Q4 2020 we could see some market momentum this month. The company continues its core strategy of replicating low-cost production methods. With a significant improvement predicted in 2021 guidance FFTNF stock could see some gains.
FFNTF stock is up 12.61% in the past 30 day’s closing at $1.32 on May 18th. In February FFNTF stock reached a high of $1.98 and is currently up 47.25% year to date. According to analysts at Wallet Investor FFNTF stock has a 1-year forecast price target of $2.558 per share. In essence, this would be a 90.89% gain from current levels. For this reason, FFNTF stock is a top marijuana penny stock to watch in May.
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Red White & Bloom Brands Inc
Red White & Bloom Brands Inc. is a top US MSO that is rapidly expanding in the legal cannabis and hemp markets. At the present time, the company has its retail locations in US markets like Michigan, Illinois, Massachusetts, Arizona, Florida, and California. With a recent acquisition of all Florida operations from Acreage Holdings Inc. (OTC: ACRHF) the company is positioning itself rapidly. In fact, now RWB will have 8 retail stores in prime locations in Florida, a 114,000 SQ. foot facility for cultivation, and a 400 Sq. foot office building.
In the near future, RWB plans to introduce its Platinum Vape brands into the Florida market and has also launched the brand into the recreational market in Arizona. Earlier in May RWB announced it did not file its audit in advance of the April 30th deadline and provided certain 2020 financial highlights. RWB now expects to do its annual filings on or about May 30th.
RWBYF stock closed at $0.9137 down 4.82% for the day. In February the stocks reached a new high of $1.65 and are up 60.47% year to date. In the past 30 days, RWBYF stock is down 18.64% At Stock invest analysts are expecting RWBYF to fall by 17.98% during the next 3 months. This analysis is based on the stock’s short-term market trends. With this in mind, RWBYF stock could be one to watch for a better entry point for an investment.
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