Best Cannabis Stock to Watch This Week
Looking for the best marijuana stocks to buy during the current Santa Claus run? In December, most of the cannabis sector fell to its lowest trading levels in 2021. This is mostly due to the failure of Congress to pass federal marijuana legalization this year. In the first quarter, top cannabis stocks rebounded around the idea that we’ll see the end of the cannabis ban this year.
As the year progressed, it became clear that the Senate would not accomplish a federal cannabis reform of any kind this year, and the cannabis sector fell dramatically. Although market volatility this year is nothing new for cannabis investors, it can be a shocking thing for new investors. One of the ways in which many cannabis investors take advantage of these price swings is by trading marijuana penny stocks. Penny stocks are any stocks that trade under the $5 threshold and are known to be a high-risk investment.
Because of this, many active traders prefer to invest in them on a short-term basis. By using day trading and swing trading techniques, active traders can make profits through daily price fluctuations in cannabis stock. With stocks trading at much lower levels as 2022 approaches, this could be an opportunity for new investors to get on the ground floor before the federal cannabis reform takes place sometime in the future.
Find penny stocks before 2022
Before investing in a cannabis stock, it is important to do your own research on the company and stock performance. Researching company earnings and press releases can help you find the best performing companies in the industry. In addition, following how the stock is moving in the market can allow you to determine the best entry point for your trade. These factors will help you become a successful trader and help you make better investment decisions. As we head into the new year, let’s take a look at two of the biggest penny marijuana stocks for your 2022 watch list.
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Best Penny Marijuana Stocks Under $2 for January 2022
- TPCO Holding Corp. (OTC: GRAMF)
- Charlotte Web Holdings, Inc. (OTC: CWBHF)
TPCO Holding Corp.
At present, TPCO Holding Corp. is One of the largest cannabis companies in California. TPCO members include Shawn Jay-Z Carter, an icon and entrepreneur, as well as Caliva, a direct-to-consumer platform, and Left Coast Ventures, a cannabis producer. Carter is the Chief Visual Officer and Chief Brand Strategist at TPCO. Troy Dacher was appointed as the company’s new CEO in August. Datcher’s hiring marks the first time that a Black CEO has overseen a large publicly traded cannabis company in the United States. The company acquired Coastal Holdings Company, LLC in October, expanding its retail network to 11 locations and six delivery warehouses.
TPCO reported net sales of $39.7 million and gross profit of $6.1 million, or 15% of revenue, for the third quarter of 2021 on November 15. Additionally, the company lost $16.2 million in adjusted EBITDA in the third quarter. At the end of the third quarter of 2021, the company had $206.7 million in cash and cash equivalents. In November, Tiffany McBride was named managing director, and Keri Arnold was named chief people officer for Social Equity Ventures.
GRAMF stock is trading at $1.39 on December 28y Down 74.87% in the past six months. Currently, the stock has a 52-week price range between $1.26 and $13,962 which brought it down to that level in today’s trading. According to analysts at Tip Ranks, GRAMF stock has an average 12-month price target of $8 per share. In this case, this would be 475.54% higher than its last traded price of $1.39. As we close out 2021, GRAMF’s stock could be some of the biggest marijuana penny stocks to watch in 2022.
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Charlotte Web Holdings, Inc.
Next on the list is Charlotte Web Holdings Inc., one of the market leaders in Hemp CBD wellness products in the United States. Primarily, the company has held its industry leading position in the US CBD market for years and continues to show growth. Specifically, Charlotte’s Web contains high-quality products made with farm-grown American hemp genes. To highlight this, the company manufactures this into hemp extracts and has the number one CBD brand in the United States. Charlotte’s website is spread across over 22,000 retail locations across the country. In October, the company announced retail expansions in California after the passage of the 45 Consolidation Act.
Charlotte’s website generated results for the third quarter of 2021 with net revenue of $23.7 million compared to $25.2 million in the third quarter of 2020. Overall, the company saw gross profit increase to $14.9 million and operating expenses decreased by 15.6 % on an annual basis. The company incurred an adjusted EBITDA loss of $2.8 million compared to a loss of $6.7 million in the third quarter of 2020. Additionally, the company expanded its No. 1 market share across each channel. Also, Charlotte Web started its new distribution in the fourth quarter of 2021 with retail partners in California.
CWBHF stock is trading at $1.1265 on December 28y down 21.16% in the last month. The 52-week stock is trading at $0.999 to $7.00 and is down 65.91% year-to-date. According to analysts at CNN Business CWBHF, the average 12-month stock price target is $3.46 per share. In this case, that would be an increase of 207.38% over its current trading price.
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