Trading Cannabis Stock In June 2021
As the second week in June ends top marijuana stocks are showing some upside in trading. In general, better market sentiment and the possibility of federal cannabis reform have given investors more interest in the best cannabis stocks. In the US the cannabis industry continues to grow rapidly with new states legalizing cannabis expanding the market. Essentially this is an exciting time for the cannabis market.
The next five years are expected to see significant growth in the cannabis sector. One area that continues to deliver short-term gains for investors in marijuana penny stocks. At the beginning of 2021, the top cannabis penny stocks delivered the most gains in January and February when the market rallied. Now trading at much lower stock prices these cannabis stocks could be positioned for future gains for investors.
But before investing in pot socks there are a few things to get familiar with about this part of the cannabis sector. In general marijuana penny stocks are known for being some of the more volatile stocks on the market. This makes it a fast-moving high-risk area of trading. Currently, investors prefer trading these penny stocks using short-term trading methods.
New Cannabis Companies Entering The Market
There are also new cannabis companies that have recently been introduced to the market. In 2021 many companies are going public by way of SPAC deals. Special purpose acquisition companies have become the more popular method of bringing companies public. As more cannabis companies start trading in the stock market investors may find some of the best gains from this area of the market. With the pullback in the cannabis sector, these marijuana stocks could be in a position for future upside in the market.
With all this in mind, we can begin to research some marijuana stocks for your watchlist in June. As an investor doing your due diligence on a company is very important, this can help you establish the best position for your investments. Ultimately researching a company’s financials and studying how the stock moves in the market can help produce the best returns for your portfolio. As this week comes to a close let’s take a closer look at 2 marijuana stocks for your watchlist next week.
Marijuana Stocks To Watch
TPCO Holding Corp.
Fairly new to the market TPCO Holding Corp. is a cannabis company with one of the largest operational footprints in California. Officially called The Parent Company, TPCO is made up of direct-to-consumer platform Caliva, and hemp manufacturer Left Coast Ventures. In addition, TPCO has a global icon and entrepreneur Shawn Jay-Z Carter as Chief Visionary Officer and brand strategist.
In its latest earnings, TPCO delivered the first quarter of 2021 results with consolidated net sales of $39.9 million and adjusted net sales of $46 million. Additionally, the company maintains a leading balance sheet with $281 million in cash. The company saw a gross profit for Q1 2021 of $7.2 million or 18% of net sales. The Parent Company’s Chief Executive Officer Steve Allan said,
“With some of the most well-known cannabis brands, an industry-leading balance sheet, and strong positioning in the California market, we entered 2021 with substantial forward momentum as we continue to execute on our growth and consolidation strategies.”
GRAMF stock closed on June 10th at $5.95 down 41.21% year to date. In February the stock reached a high of $13.96 and is down 5.25% in the last five days. According to analysts at Tip Ranks GRAMF stock has a 12-month average price target of $11.00 per share. In essence, this would represent an increase of 84.87% from current trading levels. For this reason, GRAMF stock could be a top marijuana stock to add to your watchlist before next week.
Lowell Farms Inc.
Known previously as Indus Holdings, Lowell Farms Inc, recently completed the corporate name change in March after the acquisition of Lowell Farms. As a California-based cannabis company with advanced production capabilities the company grows artisan craft cannabis and built a portfolio of award-winning licensed brands. Lowell recently established a strategic licensing agreement with Ascend Wellness Holdings. Specifically, the two companies will bring Lowell Smokes brand to dispensary locations in Massachusetts and Illinois.
In May Lowell Farms released its first-quarter 2021 financials with Q1 revenue of $11 million an increase of 17% from Q1 2020. Operating expenses were $4.2 million for Q1 when comparing to $5.4 million in Q1 of 2020. Currently, the company is operating at a loss of $5.7 million in Q1. Generally, this is an improvement when comparing to a loss of $7.1 million in Q1 of 2020. With improving financials Lowell continues to advance in the cannabis market in California and also in other markets.
LOWLF stock is up 2.63% year to date and closed on June 10th at $1.1626. In March LOWLF stock reached a high of $2.149 down 14.38% in the past month. According to analysts at Wallet Investor LOWLF stock has a 1-year forecast price target of $1.711 per share. Currently, with cannabis reform possibilities and Lowell Farms entry into other markets, the company could have future potential. With this in mind, LOWLF stock could be a top marijuana penny stock to add to your watchlist in June.