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Investing in Marijuana Penny Stocks as Volatility Continues
To close out the week, some of the major marijuana stocks began to see an edge in the market. As the S&P pushed back above 4000, many cannabis stocks to watch began to see percentage gains. One area that seems to have gained the most is marijuana penny stocks. In general, penny stocks are all stocks that trade below the $5 price level. Specifically, these stocks are known to have significant market volatility and are considered a higher risk-reward trade. For this reason, many cannabis investors trade these cannabis penny stocks using short-term trading strategies.
Generally, active traders can generate gains using day trading and swing trading techniques in the market. One of the advantages of penny stocks is that investors can acquire a larger position size with less capital. This allows them to take advantage of smaller moves in the price action. Also, many of these traders use chart patterns and technical indicators to improve their chances of making profitable trades.
Currently, many of these marijuana penny stocks have set new lows in May and could see a move higher with better market sentiment. Although many analysts are still predicting that the overall market could experience further decline, it might be time to start a watchlist of cannabis penny stocks that are posting percentage gains. With 2022 showing substantial market volatility that could continue through the year, let’s take a look at the top 4 marijuana penny stocks for your list next week.
Top Marijuana Penny Stocks for Your List Right Now
- Ascend Wellness Holdings, Inc. (OTC: AAWH)
- Harborside Inc. (OTC: HBORF)
- Lowell Farms Inc. (OTC: LOWLF)
- Cansortium inc. (OTC: CNTMF)
Ascend Wellness Holdings, Inc.
AWH is a vertically integrated cannabis company with operations in Illinois, Michigan, Ohio, Massachusetts and New Jersey. Overall, AWH’s core business is to own and operate cultivation facilities that produce award-winning varieties and a range of carefully selected products. In general, the company manufactures and sells Ozone branded products. The Company’s cannabis product categories include flowers, pre-rolls, concentrates, vapes, edibles and other cannabis-related items. AWH sells to licensed cannabis dealers and has 17 retail outlets. On May 11, Ascend Wellness agreed to increase the price for the acquisition of MedMen NY Inc., a subsidiary of MedMen Enterprises Inc. (OTC: MMNFF), from $73 million to $88 million, with $4 million dollars contingent on adult sales initiation. at a MedMen NY facility. Ascend Wellness will obtain a 99.99% controlling interest in MedMen NY upon closing of the transaction.
The company reported total gross sales of $101.2 million in the first quarter of 2022, down 0.8% quarter-over-quarter but up 33.4% year-over-year. ‘other. Additionally, net revenue excluding intercompany wholesale product sales decreased 3.8% quarter-over-quarter but increased 28.7% year-over-year. to reach $85.1 million. The company incurred a net loss of $27.8 million in the quarter, compared to a net loss of $16.5 million in the fourth quarter of 2021. Ascend’s adjusted EBITDA was $16.4 million , indicating a margin of 19.2%. The company has $143.8 million in cash and cash equivalents as of March 31, 2022 and $89.9 million in net debt. The company announced on April 12 that it will be one of seven operators in New Jersey serving adult-use cannabis starting next week.
Performance of AAWH shares
AAWH stock closed on May 13and at $3.35 up 10.20% over the past five trading days. Currently, the stock has a price range of $2.81 to $15.81 down 48.87% year-to-date. According to analysts at CNN Business, AAWH stock has a 12-month median price forecast of $8.50 per share. In this case, that would represent a 153.73% upside from its last trading price of $3.35.
Harborside Inc. was one of the first six companies to be licensed in the United States. May 11and the company announced the opening of two new retail stores bringing its total number of stores to 13 in California and Oregon. In 2021, Harborside began expanding its footprint in California, and plans are to continue to do so. Harborside has completed upgrades to its Salinas cultivation facility, doubling annual cultivation capacity and enabling year-round production. Recently, the company completed the acquisition of Urbn Leaf on March 1, while the acquisition of Loudpack is expected to close on March 15. In April, the company announced completion and renaming to StateHouse Holdings and is now considered one of the largest vertically integrated cannabis companies in California.
Harborside’s overall gross sales in the third quarter of 2021 were $17.9 million, up 10.4% from the prior quarter. Additionally, Adjusted EBITDA increased 28.2% to $1.5 million from the prior quarter. Sublime and Accucanna LLC were also acquired by the company. Harborside earned $9.2 million in retail sales, $2.8 million in wholesale revenue, and $5.9 million in manufacturing revenue in the third quarter of 2021. The company ended up making a profit of $5.4 million in the third quarter of 2021. HBORF stock is trading at $0.40 on May 13and up 14.98% for the trading day. Currently, the stock has a 52-week price range of $0.25 to $2.06 and is up 37.93% in the last five trading days and 9.59% since the start of the market. ‘year.
Lowell Farms Inc.
Lowell Farms Inc is a California-based cannabis company that is rapidly increasing its market share. The Company’s primary objectives include developing an award-winning portfolio of licensed cannabis brands for cannabis consumers, as well as creative production capabilities, artisanal cannabis cultivation and developing an award-winning portfolio of cannabis brands. licensed cannabis for cannabis consumers. The company has entered into a license agreement with Ascend Wellness Holdings. The two companies will collaborate to supply the Lowell Smokes brand to dispensaries in Massachusetts and Illinois. In November, Lowell and Ascend announced that the Lowell Smokes brand would expand to Michigan. According to the company, the well-known Lowell Smokes pre-roll packages will also be available in Illinois.
Lowell Farms reported financial results with revenue of $12.4 million in the first quarter of 2022, up 13% from the first quarter of 2021. CPG revenue increased 10% sequentially, primarily due to increased revenue from pre-roll and packaged flowers. Additionally, gross margin as reported was 12.7% in the first quarter, compared to 12.3% sequentially and 13.4% year-on-year. The company suffered a net loss of $4.1 million in the first quarter, compared to a net loss of $10.0 million sequentially. LOWLF shares closed at $0.2949 on May 13and up 27.33% for the trading day. The stock is now trading within a 52-week price range of $0.187 to $1.38 and is up 28.22% over the past five trading days.
Cansortium Inc. is a Florida based cannabis company focused on high quality cannabis. The company’s operations are currently based in Texas, Michigan and Pennsylvania. Cansortium is expanding its reach in Florida and Pennsylvania this year with a $90 million loan and capital agreement. In Fruitland Park, Florida, the company has just built a dispensary. Cansortium operates 27 dispensaries in Florida, making it the largest network of dispensaries in the state. Fluent has also created a full line of high quality dried flowers, consumables, full spectrum extracts, cartridges and lotions under the Fluent brand.
The company released its preliminary unaudited fourth quarter and full year 2021 results on May 2. Cansortium’s full year 2021 revenue was $63.7 million, up 22 % compared to the previous year. Adjusted EBITDA for the full year increased 90% to $19.6 million. The company achieved revenue of $16.5 million and adjusted EBITDA of $5.1 million in the fourth quarter of 2021. Fluent in Homestead and Sweetwater now has additional greenhouses thanks to the cultivation in Florida of Cansortium. May 13and, CNTMF stock ended at $0.18, up 12.70% for the trading day. The stock is now trading within a 52-week price range of $0.158 to $1.20 and is down 73.14% year-to-date.
Finding the Best Pot Stocks in 2022
Before investing in cannabis stocks, it’s important to do your own research on a company. Reviewing a company’s press releases and financial statements can help you find the best performing companies to invest in. In 2022, there are a few possible catalysts that could revive cannabis stocks in the market. At the federal level, any cannabis reform legislation that passes could be a potential builder of momentum for top marijuana penny stocks. In 2021, many cannabis stocks made triple-digit percentage gains as legislation was introduced in Congress. With that in mind, these top marijuana stocks are on watch in May.
The post Best Marijuana Stocks to Buy in 2022? 4 Penny Stocks to Watch in Mid-May appeared first on Marijuana Stocks | Cannabis investments and news. Roots of a budding industry.(TM).