The Current Cannabis Industry And Declines In Pot Stocks In 2021
Are you looking for top marijuana stocks to buy for 2022 gains? Although 2021 has delivered declines to many of the best cannabis stocks to invest in this could be an opportunity for traders next year. Because of federal cannabis reform delays, the cannabis sector was negatively impacted in 2021. Although this is true in the market this year many leading cannabis companies saw strong earnings growth and continued expanding their presence into new markets.
As more states begin new medical and recreational markets, 2022 can continue providing room to grow for the cannabis industry. One area that has seen significant declines in 2021 is the Canadian cannabis sector. As the year began many investors believed we would see federal marijuana legalization in 2021. With many lawmakers pushing for the end of prohibition, there are a few details that held back reaching federal marijuana legalization this year.
One major issue that politicians have not found a middle ground in is marijuana decriminalization. In general Senate Majority Leader Chuck Schumer is pushing for measures to help communities that have been affected by the government’s war on drugs. This is the main reason the SAFE Banking was not passed this year and all federal marijuana legalization and reform bills have been held off.
Canadian Cannabis Stocks And 2022 Potential
One area that stands to gain from the US ending prohibition is the top Canadian cannabis stocks. In 2021 these stocks have seen the most market volatility and experienced the steepest declines in December. But with the possibility of seeing some changes to US policy next year, they could have substantial upside next year. For investors looking to take advantage of the drops in value in 2021, there are many Canadian marijuana stocks that could see upward momentum in 2022. With this in mind, let’s look at 2 top Canadian marijuana stocks for your watchlist right now.
Top Canadian Cannabis Stocks For Your 2022 Watchlist
Village Farms International, Inc.
Village Farms International, Inc. and its subsidiaries currently grow, sell, and distribute greenhouse-grown tomatoes, bell peppers, and cucumbers throughout North America. In addition, the company is concentrating its cannabis and CBD businesses in Canada and the United States. Pure Sunfarms, a completely owned subsidiary of Village Farms, is one of North America’s largest cannabis enterprises. Pure Sunfarms just got a cannabis cultivation license for a delta 2 greenhouse, which would increase production capacity by 50%. Village Farms debuted a new corporate identity and a new website, www.villagefarms.com, earlier this year.
Village Farm announced its third-quarter results for 2021 in November, including another record quarter for Pure Sunfarms. Total cannabis sales were $31.2 million, with Pure Sunfarms accounting for $27.4 million and Balanced Health Botanicals accounting for $3.8 million. In all, these two subsidiaries accounted for 43 % of Village Farms’ total revenues. On November 15th, the company announced that it had purchased 70% of ROSE LifeScience, a company located in Quebec. ROSE is a vertically integrated branded and third-party provider to the Quebec market in particular.
VFF stock closed at $6.32 on December 30th down 3.51% in the last five trading days. Currently, the stock has a 52-week price range of $5.61-$20.32 and is down 37.67% year to date. According to analysts at CNN Business VFF stock has a 12-month median price target of $18.23 per share. In this case, this would represent an upside of 188.90% from its last trading price.
Aurora Cannabis Inc.
Aurora Cannabis Inc. is a Canadian firm that manufactures and sells medicinal marijuana across the world. The company recently announced its foray into the US cannabis industry with the purchase of Reliva, a CBD-producing company in the United States. In addition, Aurora added three additional unique cultivars to its San Rafael ’71 inventory. On the international front, the business sent an $8 million cannabis shipment to Israel. The company is now working on reorganizing its balance sheet and has completed the first shipment to the French medicinal cannabis pilot program.
Aurora reported total cannabis net sales of $60.1 million in the first quarter of fiscal 2022, up from $54.8 million in the fourth quarter of fiscal year 21. In particular, the corporation has an $11.5 million Adjusted EBITDA loss. Aurora is the leading Canadian LP in the global medical cannabis market, and the company claims that its corporate transformation plan is on track.
Words From The CEO
“During the quarter, total cannabis net revenue increased by approximately 10% sequentially, driven by our industry-leading and high margin global medical cannabis business. Our premiumization strategy also gained traction, as evidenced by 29% sequential revenue growth in our premium dry flower brands of San Rafael ’71 and Whistler, primarily driven by the launch of three new Coast cultivars.”
Miguel Martin, Chief Executive Officer of Aurora Cannabis.
ACB Stock Performance
ACB stock closed at $5.50 on December 30th down 10.13% in the last five trading days. Currently, the stock has a 52-week price range of $5.42-$18.98 down 33.81% year to date. According to analysts at Tip Ranks, ACB stock has a consensus price target of $6.38per share. This would be an upside of 16% from its last trading price of $5.50.