Looking for the best stocks of marijuana to buy? 2 who could see more payoffs than meme stocks
Free preview of the book
Learn how to finance your business in the cannabis economy!
June 17, 2021
6 minutes to read
This story originally appeared on Marijuana Stocks
Best stocks of marijuana in 2021
Are marijuana stocks on your radar for the summer? In 2021, the cannabis industry has the potential for upward momentum after months of declining market. Now, with cannabis reform in Congress, it may only be a matter of time before the United States puts new federal cannabis policies in place. In essence, this could revive the cannabis market and push upper jar stocks higher this summer.
One area that is considered a high risk, high return investment is that of marijuana penny stocks. By definition, penny stocks are stocks that trade below $ 5. Known for extreme market volatility, these stocks fluctuate widely in the market. Due to this market volatility, more and more investors prefer to trade the best short-term cannabis penny stocks. In general, day traders and swing traders profit from rises and falls in stock prices by using short-term trades.
Earlier in 2021, some marijuana penny stocks gained notoriety as memes stocks with investors at Reddit and Robinhood. This caused those marijuana penny stocks to post big gains in the market as the volume pushed the stocks much higher. An example of a marijuana penny stock that still has the interest of the Reddit investor is Sundial Growers Inc. (NASDAQ: SNDL). In June, the memes stock started to get more mentioned on the Reddit platform and could see a rise in the near future. In fact, Sundial recently released results that have impressed investors and beat other major Canadian cannabis companies.
Understanding the risk in the best marijuana penny stocks to invest in
While these cannabis stocks are high risk, they generated significant gains for investors earlier in the year. For investors looking for short-term investments, this might be a good time to add marijuana penny stocks to your watch list. For investors, an important part of finding the best marijuana penny stocks to buy is to do your due diligence on a business. Ultimately, researching a company’s finances and studying stock market trends and graphical data can help you make the best investment decisions.
With that in mind, we can begin to look at some possible candidates for your June watchlist. As it stands, those marijuana penny stocks have consolidated near their current market value for the past few months. This could mean that with the right trading environment, we could see future gains in the market. As this week of trading draws to a close, let’s take a look at the 2 best marijuana penny stocks to add to your watchlist right now.
Penny stocks of marijuana to watch
Fire & Flower Holdings
Fire & Flower Holdings Corp. is an adult cannabis retailer focused on the Canadian market and international expansion into new markets. Right now, the company offers the best retailing and its digital HifyreTM platform connects consumers to cannabis products online. In February, Fire & Flower announced its entry into the U.S. cannabis market through a strategic licensing partnership with American Acres. Specifically, the licensing partnership and acquisition option with American Acres provides Fire & Flower with strategic entry into the cannabis markets in California, Arizona and Nevada. Additionally, Fire & Flower’s subsidiary Hifyre has entered into a strategic agreement with leading US analytics firm BDSA.
June 15e Fire and Flower announced its financial results for the first quarter of 2021. In detail, the company reported first quarter revenue of $ 44.1 million, up 91% year-over-year . This is the fourth consecutive quarter of positive Adjusted EBITDA for Fire & Flowers at $ 2.3 million. In addition, the company’s large Hifyre digital retail platform generated $ 2.8 million in the fiscal first quarter, an increase of 252% from the previous year. But like many of its Canadian peers, Fire & Flower suffered a net loss of $ 61.6 million in the quarter.
Performance of FFLWF shares
FFLWF stock trades at $ 0.8773 on June 17e up 30.87% year-to-date. In February, FFLWF stock hit a high of $ 1.20 and lost 7.65% in the last five trading days. According to Market Beat analysts, FFLWF stock has set a consensus price target of $ 1.80 per share. Essentially, that would be a 102.2% increase from its current share price. For this reason, the FFLWF stock could be one of the best marijuana penny stocks to add to your watchlist in June.
TILT Holdings Inc.
TILT Holdings Inc. provides business solutions to cannabis companies who are building their brand on a global platform. By focusing on global markets like the United States, Canada, Israel, Mexico, South America and the European Union, the company is establishing a global presence. Currently, the company has a large portfolio of companies that supply technology, equipment, cultivation and production to other large cannabis companies. In addition, TILT supplies the US and European medical cannabis markets with medical grade inhalation devices. Primarily one of the main goals of the company, this area of the US medical cannabis industry is expected to grow by 20% on an annual basis.
In May, TILT released its financial statements for the first quarter of 2021 with revenue of $ 46.8 million, up 15% year-over-year. TILT mainly generated record orders for accessories for the first quarter of 2021. In addition, the company recorded record flower sales for the month of March in Pennsylvania. Additionally, TILT reaffirmed its revenue forecast between $ 205-210 million and adjusted EBITDA of $ 30- $ 32 million. Today, TILT announced an exclusive contract to manufacture and distribute the Old Pal brand based in Los Angeles, Massachusetts.
TLLTF share performance
TLLTF stock trades at $ 0.5025 on June 17e up 75.85% year-to-date. In February, TLLTF stock hit a high of $ 0.75 and has fallen 9.33% in the past five trading sessions. According to Wallet Investor analysts, TLLTF stock has a one-year forecast price target of $ 0.673 per share. This would represent a 34.33% increase from its current trading levels. For investors looking for short-term market gains, TLLTF stocks could be a top marijuana penny stock for your watch list this month.