Best Cannabis Stocks To Watch With Possible US Cannabis Reform
Are you looking for the best marijuana stocks to buy right now? During November the cannabis sector has been experiencing increased volatility. One reason for this increased momentum is the possibility of reaching some form of federal cannabis reform before the end of 2021. Next week the Senate will choose to either leave SAFE Banking on the NDAA or remove it adjust the draft and send it back to House.
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For most of 2021, the cannabis sector has been negatively impacted by the delays in achieving federal marijuana legalization. With bipartisan support on the matter, both parties have introduced legislation this year. Currently, there seem to be some details with marijuana decriminalization lawmakers are still trying to establish. Going into December the cannabis sector is trading near some of the lowest price points seen in 2021.
For cannabis investors, this could be a good time to add top pot stocks to your watchlist. The increasing market volatility could affect some of the best marijuana penny stocks to invest in. For those not familiar with penny stocks these are any stocks trading under the $5 stock price. In general, this area is known for being a high-risk reward area that many traders prefer to trade using short-term trading techniques. In specific, some traders use day trading and swing trading methods to produce gains with cannabis penny stocks.
Finding The Best Pot Stocks To Invest In Right Now
Before investing in cannabis stocks, it’s important to do your own due diligence on a company. Researching a company’s financials and looking into their press releases can help you find the best-performing companies to invest in. In addition, following how a stock performs in the market can help you establish the best entry point for your investments. Let’s look at 3 top marijuana penny stocks for your watchlist before December.
Top Marijuana Penny Stocks To Watch Next Week
- OrganiGram Holdings Inc. (NASDAQ: OGI)
- HEXO Corp. (NASDAQ: HEXO)
- Sundial Growers Inc. (NASDAQ: SNDL)
OrganiGram Holdings Inc.
OrganiGram Holdings Inc. is one of the leading licensed producers of cannabis and cannabis-derived products in Canada. Primarily the company is known for producing high-quality, indoor-grown cannabis products to both the medicinal and recreational markets. At the present time, Organigram is developing its international business partnerships increasing the company’s presence in the global cannabis industry. Additionally, the company is also growing its wholesale shipping of cannabis and sells products online. Recently, Organigram extended its SHRED product portfolio with high quality, SHRED’ems Gummies. Also, the company launched Edison JOLTS Canada’s first flavored high potency THC ingestible extracts.
OrganiGram produced 84 new SKUs since July 2020 as a part of revitalizing its products portfolio. To highlight, this includes two new high potency strains under the higher-margin Edison brand in Q3. On November 23rd the company released its fourth quarter and fiscal 2021 results Q4 net revenue of $24.9 million compared to $20.4 million in Q4 fiscal 2020. In addition, Q4 Fiscal 2021 adjusted gross margin was $3 million or 12% of net revenue. The company sustained a net loss of $26 million compared to a net loss of $38.6 million in the same period the prior year. Organigram gave an outlook for Q1 fiscal 2022 revenue to be higher than Q4 fiscal 2021.
OGI stock closed at $2.16 on November 26th up 8%% in the past five trading days. The stock has a 52-week price range of $1.22-$6.45 and is up 62.41% year to date. According to analysts at CNN Business OGI stock has a 12-month median price target of $2.36 per share. In this case, this would represent an upside of 9.74% from its last trading price.
HEXO Corp. is another Canadian company with award-winning cannabis products in the market. At the present time, the company has a strong presence throughout a global industry, serving the Canadian recreational market with an extensive brand portfolio. Primarily, HEXO is producing medical sales in Canada, Israel, and Malta. In addition, the company has been expanding into is the US cannabis market as well. HEXO serves the Colorado market with Truss CBD USA a joint venture with Molson Coors. Recently, the company acquired Zenabis Global Inc. a Canadian licensed cultivator of recreational and medical-grade cannabis. Both acquisitions will help solidify the future expansion for HEXO in Canada, Europe, and the US market.
In October HEXO delivered its fourth-quarter fiscal 2021 results that show strong growth. To highlight, the company saw total Q4 2021 net sales of $38.7 million up from $22.6 million in Q3 2021. In addition, total net revenue increased to $123.5 million in fiscal 2021. HEXO also purchased its first US production facility through a wholly-owned US subsidiary. The 50,000 square foot facility is in Fort Collins, Colorado, and will provide high-quality Powered by HEXO products across the US.
HEXO is closed on November 26th at $1.19 down 28.31% in the last month of trading. Currently, the stock has a 52-week price range of $1.10-$11.04 down 67.66% year to date. According to analysts at Tip Ranks HEXO stock has a 12-month average price target of $1.60 per share. In this case, this would be an upside of 39.13% from its last trading price of $1.19.
[Read More] 2 Marijuana Stocks To Watch Before December 2021
Sundial Growers Inc.
Known to many as a cannabis meme stock Sundial Growers Inc. engages in the production and marketing of cannabis products for the adult-use market in Canada. At the present time, the company manufactures and distributes inhalable products, such as flower, pre-rolls, and vapes. Recently Sundial announced it launched the first Canadian Caviar cone under the Top Leaf brand. In detail, the Forbidden Lemon Caviar Cones will be the first caviar cone product to hit the Canadian market. At the present time, this launch reinforces Sundial’s focused innovation pipeline around premium inhalable in the Canadian cannabis market. In October Sundial announced it would acquire Alcanna Canada’s largest private liquor retailer.
In November Sundial delivered its third-quarter 2021 results with net earnings of $11.3 million and an Adjusted EBITDA of $10.5 million. Specifically, the net revenue from the cannabis segment reached $14.4 million in Q3 2021. Gross margins from the cannabis segments were $1.8 million compared to a loss of $19.5 million in Q3 2020. In addition, the company saw investment and fee revenue of $3.3 million, realized gains on securities of $6.0 million and the company has profited from equity account investees of $9.9 million in Q3 2021.
SNDL stock is trading at $0.6541 on November 26th down 10.56% in the past five trading days. The stock has a 52-week price range of $0.4210-$3.96 and is up 38.14% year to date. According to analysts at Tip Ranks SNDL stock has a 12-month average price target of $0.89 per share. In this case, this would represent an upside of 36.86% from its last trading price.