Will Marijuana Stocks Recover As Federal Reform Faces Issues?
Right now marijuana stocks are seeing yet another drop in trading. This current pullback is all based on the hold-up with federal cannabis reform. Many people who work in the cannabis industry have been waiting for the end of cannabis prohibition. With the cannabis prohibition coming to end it would allow for more opportunities to take place. For example, due to cannabis being federally illegal some ventures aren’t possible for that reason. Nevertheless, on a state level, the cannabis industry is still thriving.
Marijuanastocks.com – MarijuanaStocks
Yet the fight for federal cannabis reform is creating an issue for the bulk of marijuana stocks. Even though this pullback is giving more people a chance to find top marijuana stocks to buy. For the last few weeks, the cannabis sector was on a steady path toward recovering. Unfortunately, the priority is ending cannabis prohibition which is the biggest legal hurdle to get passed. Any news that states a hold-up or lack in progress has historically pushed cannabis stocks down.
At least for most of them. Much of the issues that come from passing federal reform are based on which group of politicians will be the one to do it. For instance, you have Chuck Schumer who is working on a reform bill. As well you also have other members of Congress working on the MORE Act. And recently the Republicans have now jumped on board with a bill of their own.
Marijuana Stocks And Federal Cannabis Reform
With all these legislators and politics it’s creating confusion among the bunch. As a result of trying to enact this policy change cannabis stocks suffer the consequence. Now even though right now the sector is taking a hit this is not all bad news. On the brighter side what was once a one-sided fight for reform is now being pushed with more bipartisan support. With both Democrats and Republicans taking action to pass federal reform it’s only a matter of time before it’s done. Until such time the cannabis stocks below could be the ones to hold once things start to move up.
Top Marijuana Stocks To Watch For Better Trading In 2021
Goodness Growth Holdings, Inc.
Goodness Growth Holdings, Inc. operates as a physician-led cannabis company in the United States. It cultivates cannabis; manufactures pharmaceutical-grade cannabis extracts; and sells its products. Which is done through its network of Green Goods and other retail locations, and third-party dispensaries. Back on November 10th, the company released its Q3 2021 results. During this time Goodnedd Growth saw a total revenue was $13.4 million in the third quarter. This was an increase of 7.2 percent as compared to Q3 2020.
Which also included the company’s former subsidiaries in Pennsylvania and Ohio. Excluding contributions from Pennsylvania and Ohio, revenue increased 27.6 percent. Retail revenue excluding Pennsylvania increased 34.7 percent to $11.6 million in Q3 2021. This displayed growth in each of the Company’s retail markets. Wholesale revenue, excluding Pennsylvania and Ohio, declined by 5.0 percent to $1.8 million.
The cause was driven by the loss of biomass due to atypical weather in the Arizona market. From this, it resulted in a sales decline during the quarter. As well the company’s gross reached $5.1 million, or 38.3 percent of revenue. These figures are compared to the gross profit of $5.0 million or 39.8 percent of revenue in Q3 last year.
Words From The Company
“Our third quarter results were negatively impacted by unseasonal weather in the State of Arizona, where monsoonal rains wiped out a substantial portion of our outdoor crop at Elephant Head Farm,” said Chairman and Chief Executive Officer, Kyle Kingsley, M.D.
[Read More] Best Ancillary Marijuana Stocks For 2021
Acreage Holdings, Inc.
Acreage Holdings, Inc. formerly High Street Capital Partners, is a principal investment firm specializing in the cannabis industry. In recent news, the company announced its third-quarter 2021 financial report. At this time Acreage’s consolidated revenue was $48.2 million. This made for an increase of 52% year-over-year and 9% sequentially. as well the company’s gross margin increased to 49% from 43% in Q3 2020. Yet, a net loss attributable to Acreage was $12.3 million, an improvement from a loss of $40.5 million in Q3 2020.
Next, the company had an Adjusted EBITDA* of $6.5 million, compared to $(6.9) million for Q3 2020. Adjusted EBITDA* as a percentage of consolidated revenue was 13.5% for the third quarter of 2021. Another highlight is the company entered a definitive asset purchase and services agreement. This was done to divest the company’s four Oregon retail dispensaries for total consideration of US $6.5 million.
Words From The CEO
Peter Caldini, CEO of Acreage Holdings, said: “At the beginning of fiscal 2021, we introduced a refreshed strategy focused on our key priorities, which include delivering improved financial results and generating shareholder value. Our successes throughout 2021 are the culmination of these refocused efforts to drive profitability, strengthen the balance sheet, and accelerate growth in our core markets.”