Top Cannabis Stocks For Active Traders In February
Are you looking for the best marijuana stocks to buy in February? Since the start of the year, the overall market has experienced extreme market volatility. As a result, most of the top cannabis stocks have established new lows in 2022 and are now showing some upside to start February. For the cannabis sector, the delays with establishing federal cannabis reform have hurt market value for most of the sector.
But in the first week of February announcements from Schumer about his cannabis bill and the resurfacing of the SAFE Banking Act in the House have attracted cannabis investors. In general, from current trading levels, top pot stocks could see some upside with federal marijuana legalization in 2022. There are many ways to invest in the cannabis sector with currently applied volatility many investors are looking at marijuana penny stocks for short-term gains.
For those not familiar with penny stocks these are any stocks that trade under the $5 price point. Known for having significant market volatility these cannabis penny stocks are considered a high-risk reward area of the market. Because of their lower stock prices investors can establish larger positions with less capital. This allows them to produce gains in the market with smaller price movements in the penny stock. In some cases, active traders use day trading and swing trading strategies to produce gains.
Making Better Trades And Investing In Penny Pot Stocks
Before investing in penny pot stocks it’s important to always do your own research on a company. Looking into a company’s earnings and press releases can help you focus on the best-performing companies in the market. In addition, following how a stock moves in the market can help you establish the best entry points for your investments. Learning to identify favorable setups on penny stocks can help you become a successful active trader. As we start another trading week let’s look at 3 top marijuana penny stocks for your list right now.
Best Marijuana Penny Stocks For Your 2022 Watchlist
- IM Cannabis Corp. (NASDAQ: IMCC)
- Sundial Growers Inc. (NASDAQ: SNDL)
- Red White & Bloom Brands Inc. (OTC: RWBYF)
IM Cannabis Corp.
With operations in Israel, Germany, and Canada, IMC is a global pioneer in the medical and adult-use recreational cannabis industries. The IMC brand has set a benchmark in the Israeli medical cannabis sector, according to the company, which is based in Israel. IMC is adding medicinal cannabis to its list of offerings. The company is represented throughout Europe by Adjupharm, a German-based subsidiary, and EU-GMP-certified medicinal cannabis distributor. Furthermore, the company announced the completion of a state-of-the-art logistics facility in Germany, which is noteworthy. Adjupharm will be able to optimize its supply chain in the long run, including bulk cannabis repackaging, thanks to this facility. On January 19th, Focus Medical announced the arrival in Israel of 400 kg of high-quality indoor dried cannabis.
IMC introduced the WAGNERS Brand in Germany in December, supplying the country with high-quality Canadian cannabis grown indoors. In the third quarter, the company formed a partnership with cbdMD Inc. to sell cbdMD products in Israel. Additionally, on November 15th, IMC declared third-quarter 2021 earnings, with revenues of $14.4 million, up 30% over Q2 2021. In terms of specifics, the gross margin increased to 20% in 2018 and is expected to increase to 20% in 2022. The firm will commence shipping and follow agreements to secure the flow of EU-GMP supplies at the start of the third quarter. Rinat Efrima has been named the new Chief Executive Officer of IMC Holdings, the business announced earlier today.
IMCC Stock Performance
IMCC stock closed at $1.89 on February 4th up 9.25% for the past five trading days. The stock has a 52-week price range of $1.56-$11.63 and is down 61.51% in the last six months. According to analysts at CNN Business IMCC stock has a 12-month average price target of $5.37 per share. In this case, this would represent an upside of 181.29% from its last trading price of $1.89.
Sundial Growers Inc.
Sundial Growers Inc. is a cannabis company based in Canada that cultivates and sells marijuana for adult use. The company now manufactures and distributes inhalable products like flower, pre-rolls, and vapes. Sundial has just introduced the Top Leaf brand’s first Canadian Caviar cone. According to the company, the Forbidden Lemon Caviar Cones will be the first caviar cone product to hit the Canadian market. With this introduction, Sundial’s concentrated innovation pipeline for premium inhalables in the Canadian cannabis industry has increased. Sundial announced its intention to purchase Alcanna, Canada’s largest private liquor retailer, in October.
Sundial announced an $11.3 million net profit and $10.5 million Adjusted EBITDA for the third quarter of 2021 in November. The cannabis sector had $14.4 million in net sales in the third quarter of 2021. Gross margins for the cannabis divisions were $1.8 million, compared to a loss of $19.5 million in Q3 2020. In the third quarter of 2021, the company earned $3.3 million in investment and fee revenue, $6.0 million in realized gains on securities, and $9.9 million in profit from equity account investments.
SNDL Stock Performance
SNDL stock closed at $0.53 on February 4th up 9.28% for the trading day. The stock has a 52-week price range of $0.40-$3.96 and is down 32.15% in the past six months. According to analysts at CNN Business SNDL stock has a 12-month average price target of $0.84 per share. In this case, this would represent an upside of 58.14% from its last trading price of $0.53.
Red White & Bloom Brands Inc.
Red White & Bloom Brands Inc. aspires to be one of the country’s most successful multi-state cannabis businesses. The company is largely developing in the legal cannabis and hemp sectors, with retail locations in Michigan, Illinois, Massachusetts, Arizona, Florida, and California. Acreage Holdings Inc.’s (OTC: ACRHF) Florida operations were recently bought by RWB. RWB presently has eight retail sites around Florida, as well as a 114,000-square-foot warehouse and a 400-square-foot office. In August, the business purchased a 45,000-square-foot greenhouse on 4.7 acres in Florida. The acquisition provides near-term cultivation capacity while the business builds on its 114,000 square foot plant in Sanderson, Florida.
RWB released financial results for the third quarter of 2021 in November, showing sales of $11.8 million, an increase of % year over year. The company’s EBITDA was $5.9 million in the third quarter of 2020, compared to a loss of $5.8 million in the previous quarter. RWB lost $5.5 million in the third quarter of 2021, compared to $9.5 million in the third quarter of 2020. RWB’s sales climbed 386 percent year over year to $36.9 million in the third quarter. It’s also worth noting that the corporation lost $73.8 million in the nine months ended September 30, 2021. On January 18th, the firm stated that it had received final approval to commence operations at its 15,000 square foot Michigan cannabis plant.
RWBYF Stock Performance
RWBYF stock closed on February 4th at $0.443 up 12.36% for the trading day. The stock has a 52-week price range of $0.289-$1.65 and is down 43.21% in the past six months. As things begin to pick up in the cannabis sector these could be top marijuana penny stocks for your list in February.