Would You Invest in These 2 Marijuana Stocks In 2021?
As the end of December nears, let’s discuss a few things when looking for marijuana stocks to buy in 2021. When doing your research on the cannabis industry, and marijuana stocks there are some interesting things investors should look out for. The start of 2020 was a bit of a low point for marijuana stocks, to the point where people questioned the future value. However, shortly after March things changed in a major way for marijuana stocks. Due to the Coronavirus and a few other factors like cannabis legislation, many pot stocks started to reach new highs. This in turn gave investors a stronger foresight on what the future might hold for the cannabis industry.
For instance, being able to find a potential cannabis stock to buy that has its financials in order is a plus. What this indicates is that the company has not only free cash buts its business in order. This allows for a marijuana stock to deal with market volatility a bit easier which is also a good sign of growth potential. Another factor that investors consider how much current momentum a pot stock has. This as well gives a better understanding of a companies future growth. Many thought this pandemic would have had to cease in order for the market to climb again. Yet since the middle of 2020, many top marijuana stocks have shown a bit more stability and have been trading up. However, this wasn’t the case for other cannabis companies even though 2021 may present a different outcome.
Marijuana Stocks To Watch This Year
Does This Marijuana Stock To Watch Still Hold Value?: AbbVie Inc. (ABBV)
AbbVie Inc. is a marijuana stock that provides great value to the cannabis industry. AbbVie was first established back in 2013 as a biopharmaceutical cannabis company. From the company’s initial start after parting ways with Abbott Laboratories AbbVie saw immediate success with its medicine Humira. Although the company battled many lawsuits from the other popular medicines the company has developed they still continue to show progress. In the company’s most recent news announced a global strategic collaboration with Frontier Medicines, Corp. This was done to develop and commercialize a pipeline of innovative small-molecule therapeutics against high-interest, difficult-to-drug protein targets.
“AbbVie is focused on making investments in promising new technologies that assist us in our mission to develop innovative medicines,” said Jose-Carlos Gutiérrez-Ramos, Ph.D., vice president, Discovery, AbbVie. “One of our key strategic focus areas is targeted protein degradation and chemoproteomics, and this collaboration with Frontier Medicines will be highly synergistic and complementary to our ongoing efforts.”
If AbbVie can utilize this new venture for the better then this may reflect well on the market side of things for the company. From the start of November ABBV stock has been moving up in the market. From November to 2nd to December 18th ABBV stock has seen a 17% price movement. These small gains all add up and if this momentum can continue AbbVie will be a marijuana stock to watch heading into the new year.
Does This Marijuana Stock To Watch Still Hold Value?: Fire & Flower Holdings Corp. (FFLWF)
Fire & Flower Holdings Corp. is a marijuana stock that in the past has made it to investor’s watchlists and portfolios. The company works as a cannabis retail operator that is looking to take a piece of the Canadian cannabis market. In recent news, the company has released its Q3 2020 results. In addition to growing its presence in Canada, the company posted a great achievement. The company released a positive adjusted EBITDA of 1.2 million in comparison to a negative Adjusted EBITDA in Q2 2020.
“The achievement of positive Adjusted EBITDA is a significant milestone and demonstrates our continued track record of delivering on our corporate objectives,” shared Trevor Fencott, Chief Executive Officer of Fire & Flower. “Despite the challenges presented by the COVID-19 public health crisis, Fire & Flower has continued to grow and demonstrate leadership as the largest cannabis retailer in Canada. We continue to work at maintaining positive Adjusted EBITDA and aggressively pursue growth opportunities for the Company.”
Over the last month from November 20th to December 17th FFLWF stock has gone up over 20%. If you look back on December 10th to December 18th FFLWF stock had an 11% increase. These subtle gains within a volatile market is a good sign of future momentum. With this, the company is showing signs of continued momentum in the market. Which is one thing that attracts new investors. As we get closer to 2020 Fire & Flower is making the necessary adjustments to remain a marijuana stock to watch in 2021.