Top Cannabis Stocks For Current Market Volatility
Are you looking for a different way to invest in top marijuana stocks right now? This week’s increased volatility caused by the Omicron variant could be a good opportunity for active traders. As the cannabis sector continues to trade near its lowest value in 2021 the continued delays in the Senate to end cannabis prohibition is threatening to last into next year. This could continue to affect how pot stocks recover from these declines.
Some of the most volatile cannabis stocks to watch are marijuana penny stocks. For those not familiar with penny stocks these are any stocks that trade under $5 in the market. Considered a high-risk area of the market these stocks have seen the most gains in 2021 and the steepest declines. Some of the most active cannabis penny stocks have been those attached to Canadian LPs.
In general, leading Canadian cannabis companies have much to gain from entry into the US market. This could be why they have seen the most volatile price swings with the delays in federal cannabis reform. In the US there are many leading cannabis companies that will play a major role in the entry of Canadian cannabis companies into the US market. At the present time, these US pot stocks have also seen substantial drops in value heading into December.
Learning To Become A Successful Active Trader With Pot Stocks
Before investing in cannabis stocks, it’s always important to do your own research on a company. Looking into a company’s earnings reports and press releases can help you find the best marijuana stocks to buy for market gains. In addition to research, it’s important to follow how a stock performs in the market to establish the most profitable entry for your position. Many investors use technical tools to help them become successful traders. Learning how to read a stock’s trading patterns can help you achieve the best returns on your investments. Let’s take a closer look at 2 top cannabis stocks to add to your penny stocks watchlist for December.
Best Marijuana Penny Stocks To Add To Your List Right Now
Cronos Group Inc.
Cronos Group Inc. is a global cannabinoid company with international production and distribution across five continents worldwide. In general, Cronos has created a portfolio of cannabis brands that’s seen success with Canadian cannabis consumers. In addition, Cronos announced it purchased options to acquire a 10.5% stake in PharmaCann for $110.4 million. Notably, the deal will be executed under various factors including the status of US federal cannabis legalization. In specific, the deal would involve PharmaCann’s six production facilities and 23 dispensary locations. Earlier this year the company launched a line of new dual flavor cannabis gummies. These new gummies are said to have an unparalleled taste for adult consumers. On November 19th a default status report and disclosed a receipt of a Nasdaq listing delinquency letter.
Cronos missed earnings estimates on their second-quarter 2021 results. To highlight, the company produced net revenue of $15.6 million in Q2 2021 up by $5.7 million year over year. Cronos sustained a gross loss of $15.8 million in Q2 2021 increasing by $12.9 million year over year. The company attributes the loss to an increase in inventory write-downs in the ROW segment which totaled $12 million in Q2 2021. As it stands, the company has an adjusted EBITDA loss of $49.8 million in Q2 an increase of $22.8 million from Q2 2020.
CRON stock is trading at $4.35 on December 2nd down 9.85% in the past five trading days. The stock has a 52-week price range of $4.13-$15.83 and is down 39.34% year to date. According to analysts at CNN Business CRON stock has a 12-month median forecast price target of $5.50 per share. This forecast would represent an upside of 25.86% from its last trading price.
Acreage Holdings, Inc.
Next on the list is Acreage Holdings, Inc. a US multi-state operator with cannabis cultivation and retail facilities nationwide. Most Important, Acreage has a partnership and a possible acquisition with Canadian giant Canopy Growth Corporation (NASDAQ: CGC). Currently, this partnership could make Acreage instrumental in the Canadian cannabis companies’ entry into the US cannabis industry. Acreage has established a large presence in New York and New Jersey and could see significant growth in the coming years from the growing markets there. At the present time, Acreage operates the maximum number of dispensaries allowed in New Jersey and is working on completing its New Jersey cultivation facility. In October the company acquired cultivation, processing, and retail operator in Ohio. Specifically, this would give Acreage a 70,000 sq. foot cultivation facility and 5 operating retail stores.
On November 10th Acreage delivered its third-quarter 2021 results with consolidated revenue of $48.2 million an increase of 52% year over year. In addition, the company saw its gross margin up 49% in Q3 2021. As a result, Acreage sustained a net loss of $12.3 million compared to a loss of $40.5 million in Q3 2020. The company had an Adjusted EBITDA of $6.5 million compared to a loss of $6.9 million for Q3 2020.
ACRHF stock is trading at $1.87 down 57.87% in the past six months. The stock has a 52-week price range of $1.61-$9.00 and is down 38.71% year to date. According to analysts at Market Beat ACHRF stock has a consensus price target of $7.00 per share. In this case, this would represent an increase of 268.4% from its last trading price of $2.01.
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