Best Cannabis Stocks To Watch Under $1
As top marijuana stocks continue trading near 2021 lows, are looking for cannabis stocks to buy? Specifically, this year the best cannabis stocks to invest in have seen significant market volatility. After reaching new highs in February most pot stocks have experienced declines for the rest of the year. In fact, now in December most of the cannabis sector is trading near their 52-week lows this month. According to many recent reports, the cannabis industry is forecast to almost double in size by 2025.
At the present time, many US states and entire nationals are legalizing cannabis use for medicinal and recreational use. In general, many new investors are looking for ways to capitalize off the rapidly growing market. One way to take advantage of the market volatility is to trade top marijuana penny stocks. For those unfamiliar with penny stocks, these are any stocks trading under the $5 stock price.
Specifically, this area of the market is considered a higher risk investment which active traders prefer investing in on a short-term basis. Some investors use day trading and swing trading methods to produce gains with cannabis penny stocks. Going into 2022 we can make a marijuana penny stock watchlist for active traders looking to take advantage of these lower trading levels for pot stocks.
Penny Stocks And Finding The Best Trades
In 2021 marijuana penny stocks rallied in the first quarter climbing substantially for a short period of time. Ultimately, as we head into 2022 the cannabis sector has declined to some of the lowest trading prices which could be a good setup for next year.
Researching a company’s financials and press releases can help you find the best-performing companies in the market. In addition, following how a stock performs in the market can help you establish the best returns on your investments. As we continue through a short week of trading these could be the best marijuana penny stocks for your 2022 watchlist.
Marijuana Penny Stocks For 2022
Cansortium Inc. (OTC: CNTMF)
Sundial Growers Inc. (NASDAQ: SNDL)
Cansortium Inc. is a leading cannabis company focusing on providing the highest quality cannabis in the state of Florida. At the present time, the company has established operations in Texas, Michigan, and Pennsylvania. This year, the company is expanding its presence in Florida and Pennsylvania fully funded by a debt and equity financing of $90 million. Recently, the company opened a dispensary in Fruitland Park, Florida. As it stands, Cansortium has 27 operational dispensaries in Florida giving it a sizable presence in the state. To highlight, the companies brand the Fluent has produced a wide variety of premium dried flower, edibles, and full-spectrum concentrates, cartridges, and creams.
The company reported revenue of $15.6 million and Adjusted EBITDA of $4.9 million for the third quarter of 2021 in November. Also important, the state of Florida had a gain in revenue of $13.1 million. As a result, the company earned $9.8 million in adjusted gross profit or 62.7% of revenue. With new greenhouse facilities in Homestead and Sweetwater, Fluent by Cansortium has expanded its Florida cultivation.
CNTMF stock trading on December 21st at $0.65 up 2% for the trading day. Currently, the stock has a 52-week price range of $0.45-$1.35 and is down 16.23% year to date. According to analysts at Market Beat CNTMF stock has a consensus price target of $1.20 per share. In this case, this would represent an upside of 86% from its current trading price of $0.65.
Sundial Growers Inc.
Sundial Growers Inc. is a Canadian company that produces and markets cannabis products for the adult-use market. In general, the business makes and sells inhalable items like flower, pre-rolls, and vapes. Sundial has announced the launch of the Top Leaf brand’s first Canadian Caviar cone. Specifically, the Forbidden Lemon Caviar Cones will be the first caviar cone product to hit the Canadian market, according to the company. Sundial’s concentrated innovation pipeline around premium inhalable in the Canadian cannabis market is currently reinforced by this launch. Sundial stated in October that it will buy Alcanna, Canada’s largest private booze retailer.
Sundial reported net earnings of $11.3 million and Adjusted EBITDA of $10.5 million for the third quarter of 2021 in November. To give you an idea, the cannabis segment’s net revenue in Q3 2021 was $14.4 million. In general, the cannabis divisions’ gross margins were $1.8 million, compared to a loss of $19.5 million in Q3 2020. In addition, the company generated $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 investees in Q3 2021.
SNDL stock is trading on December 21st at $0.625 up 5.64% for the trading day. The stock has a 52-week price range of $0.45-$3.96 and is up 24.98% year to date. According to analysts at CNN Business SNDL stock has a 12-month median price target of $0.83 per share. In this case, this would represent an upside of 32.14% from its last trading price of $0.625.