Marijuana Stock 2021 Recap For Investors And Shareholders
Marijuana stocks are soon to begin a new year of trading. Even with the sector still enduring a drop many feel 2022 will be different. But first, let’s recap a bit on how marijuana stock did over the last year or so. Now before the start of 2021 cannabis stocks were showing more upward consistency. At the start of 2021, the cannabis sector as an average was still on the rise. Many felt there was nothing that was going to stop this influx in trading. Mainly due to how new and unregulated the cannabis industry was. When good news or earnings would be released it most times would resonate well among the bulk of pot stocks.
Yet as 2021 was still showing continued momentum shortly after mid-February things began to turn. It was at this time that the sector would go through a downtrend. Now many factors did contribute to this overall drop in trading. For example, the pandemic did play a role in some of the pullbacks that happened. Yet during the pandemic cannabis businesses were deemed essential and left open. Which actually helped many cannabis companies hit record-breaking sales at the time.
But the biggest one was the lack of progress with passing federal cannabis reform. This issue with ending cannabis prohibition has greatly impacted the way most top marijuana stocks are performing. Even with this downtrend occurring it wasn’t all negative. Meaning as some of the best marijuana were dropping it created a good opportunity. With how lower the sector fell it gave many a chance to find top cannabis stocks to buy. Although in the last year trading has not been the best outside of the market things are progressing.
Marijuana Stocks And Industry Progress
From the start of 2021 many publicly, traded cannabis companies have had a good amount of success. This progress has ranged from M&A and expanding operations. As well as building up other areas of the company from new management products or services. Overall more cannabis companies are creating embarking on new ventures. Most of which are centers around innovation and further building a better cannabis industry. So with much in the works investors and shareholders are optimistic that 2022 will be a better year for marijuana stocks. Especially if federal cannabis reform is finally passed. Below are just a few marijuana stocks to watch in 2022.
Top Marijuana Stock To Watch In 2022
Lowell Farms Inc.
Lowell Farms Inc. engages in the cultivation, extraction, manufacturing, sale, marketing, and distribution of cannabis products to retail dispensaries in California. In the last month, the company released its Q3 2021 financial results. At this time the company saw its revenue decrease by 12%. This figure came to be $12.5 million for the three-month period ended September 30, 2021. Which was an 18 percent drop from Q3 2020. Next, the company sales of bulk wholesale flowers fell 71% only reaching $3.9 million during Q3.
This was due to depressed wholesale prices in the market. Also in Q3, the company booked its first revenues from two new businesses. Which were brand licensing and Lowell Farm Services of $1.5 million collectively. As well gross margin was 1% compared to a margin of 35%. And 38% in the third quarter of last year and Q2 2021, respectively.
Unfortunately, the company also saw an operating loss of $7 million. Which is compared to an operating loss of $473 thousand in Q2 2021 and an operating income of $772 thousand in Q3 2020. Overall Lowell Farms did not have the best Q3 2021 financials to report. But with a new year on the way, things may turn around for this marijuana stock to watch.
Jushi Holdings Inc.
Jushi Holdings Inc. is a vertically integrated cannabis company, engages in cultivation, processing, and retail. In addition to the distribution of medical and adult-use products. It focuses on building a portfolio of cannabis assets in various jurisdictions around the United States.
Such as in Pennsylvania, Virginia, Ohio, Illinois, California, Nevada, and Massachusetts. Back on December 14th, the company announced the opening of its 28th retail location nationwide. As well it is the 18th BEYOND / HELLO™ Store in Pennsylvania. Which was done through its Subsidiary, Agape Total Health Care Inc.
Words From The Company
“In 2019, our Company set a mission of broadening access for medical marijuana patients,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “In a little more than three years’ time, we successfully opened up multiple retail locations throughout the Philadelphia, Greater Delaware Valley, Pittsburgh and Scranton Regions. Not only have we continued to successfully deliver on our mission of expanding access to medical marijuana treatments for Pennsylvania’s growing patient population, but we also helped eliminate the need to drive long distances to access these life-changing treatments.”