Top Cannabis Stocks And Their Performance In 2021
As we close out a rather bullish week in the market are top marijuana stocks to buy on your list? In December we have seen increased volatility for the cannabis sector as most top cannabis stocks continue to see declines. For the most part, many pot stocks are trading near the lowest stock prices they have seen this year. As the price fluctuations continue many cannabis investors take advantage of the volatility by trading marijuana penny stocks. Specifically, penny stocks are any stocks that trade under the $5 stock price.
Known to be a higher-risk trade, active investors prefer to trade them on a short-term basis. Using short-term methods like day trading and swing trading techniques investors can produce short-term gains as penny stock prices fluctuate. In 2021 top marijuana penny stocks rallied in the first quarter delivering significant upside for traders looking for short-term gains. This upward momentum was because of the belief federal cannabis reform would be achieved this year.
Now that it seems apparent the US will continue applying federal cannabis laws from the ’80s and 90’s cannabis stocks have declined significantly. But in 2021 leading cannabis companies have continued to show substantial revenue growth as the market expands on the state level. This year cannabis companies have continued rapidly expanding as more states legalize medical and recreational cannabis use.
Cannabis Industry Market Growth And Finding The Best Pot Stocks
As more states vote to establish new markets next year, regardless of federal support for cannabis reform the marijuana industry is growing. Finding the best marijuana stocks to buy involves some research from investors. In general, looking into a company’s finances and following how a stock moves in the market can help you establish the best returns on your trades. As we head into the weekend let’s look at 2 top marijuana penny stocks to add to your list in December.
Marijuana Penny Stocks Under $1 For Your Watchlist
Lowell Farms Inc.
In California, Lowell Farms Inc is a company that’s establishing a large presence in the cannabis market. Primarily, the company has advanced production capabilities, grows artisan craft cannabis, and built a portfolio of award-winning licensed cannabis brands for cannabis consumers. Recently, the company established a licensing agreement with Ascend Wellness Holdings. Specifically, the two companies will bring the Lowell Smokes brand to dispensary locations in Massachusetts and Illinois. During November Lowell and Ascend announced they would be bringing the Lowell Smokes brand to Michigan. Additionally, the company announced its iconic Lowell Smokes pre-roll packs will be available in Illinois. Now, Lowell Smokes will be available to Illinois consumers throughout 8 retail locations in the state.
In November Lowell Farms reported their third-quarter 2021 financials with revenue of $12.5 million a decrease of $12% from Q3 2020. Unfortunately, sales of bulk flower fell 71%, or $3.9 million in Q3 because of depressed wholesale prices. The company sustained an operating loss of $7 million and a net loss for the quarter of $8.7 million. In Q3 2021 Lowell’s Adjusted EBITDA was a negative $5.2 million. In September the company debuted a limited-edition Hash Wrap at the hall of flowers trade show. LOWLF stock is trading at $0.380 down 54.39% in the last month. Currently, the stock has a 52-week price range of $0.3773-$2.149 reaching this low in today’s trading.
[Read More] Top Ancillary Marijuana Stocks To Watch In 2022
At the present time, MariMed Inc. is a cannabis multi-state operator that is developing its own brand state-licensed cannabis facilities and dispensary operations. In general, the company develops and manages seed to sale state-licensed cannabis facilities. MariMed has an experienced management team producing consistent growth and success for its managed business units. The company’s technicians’ names are embedded in its top-selling and award-winning products and brands, including Betty’s Eddies®, Nature’s Heritage™, Bourne Baking Co., and Kalm Fusion®. On December 7th MariMed unveiled the world’s largest cannabis Infused brownie to celebrate the launch of its Buddy Baked brand.
In November the company released its third-quarter 2021 results with revenue of $33.2 million an increase of 147% year over year. In addition, gross profit was $18.2 million up 109% from Q3 2020. MariMed delivered an Adjusted EBITDA of $12.9 million an increase of 213% year over year. The company has a net income of $2.1 million a 25% increase from Q3 2020. As it stands MariMed maintains its full-year 2021 guidance of $118 million in revenue and an Adjusted EBITDA of $42 million.
MRMD stock is trading at $0.77 on December 10th up 12.94% in the last hour of trading. The stock has a 52-week price range of $0.29-$1.20 and is up 45.04% year to date. According to analysts at CNN Business MRMD stock has a 12-month median price target of $2.25 per share. In this case, this would represent an upside of 230.03% from its current trading price.