Top Marijuana Stocks on Watch List for 2022
Looking for the best marijuana stocks to watch in 2022? Towards the end of 2021, many of the best cannabis stocks for investing have fallen dramatically as the year progresses. This is mostly due to delays in Congress with passing federal marijuana legalization and reform. After senators removed the SAFE Banking Act from the NDAA this month, any possibility of seeing some kind of federal cannabis reform this year has ended. But throughout 2021, we’ve seen an increase in support from politicians on both sides of the currency to end the marijuana ban.
Overall, most of the cannabis sector has been deliberating about the possibility of cannabis reform this year. Although many of the leading companies showed strong profits in 2021, this did not translate into gains in the market. Now with most of the cannabis sector trading near the lows seen this year, investors have faced significant market volatility in 2021. One way to take advantage of the increased volatility is to trade penny marijuana stocks.
Penny stocks are any stocks that are trading under the $5 threshold. Many active traders prefer to trade these stocks using short-term methods such as day trading and swing trading techniques. Although they are considered a high-risk investment, they can yield significant gains in a short period of time. In addition, due to lower stock prices, active traders can create larger positions with less capital. This allows traders to take advantage of smaller price swings in a small pot stock and make returns from these moves.
Learn how to actively trade in penny bot stock
Before investing in any marijuana stocks, it is always important that you do your due diligence in the company. Researching a company’s financial statements and keeping track of how stocks are performing in the market can help you get the best returns on your investments. Learning how to use trading tools to create winning trades can help you become a successful trader. As this week shows some upside for the top marijuana stocks in December, let’s take a look at two of the best cannabis stocks on your watchlist ahead of 2022.
[Read More] Will These Marijuana Stocks Be on Your Watch List for the New Year?
Marijuana Penny for Your Watch List for 2022
- 4Front Ventures Corp. (OTC: FFNTF)
- Lowell Farms (OTC: LOWLF)
4Front Ventures Corp.
4Front Ventures is an American MSO and retailer specializing in mass-produced, low-cost, high-quality branded cannabis products. Currently, the company sells more than 25 different cannabis products. To name a few, Four Front has dispensaries in Illinois, Massachusetts, California, Michigan, and Washington. Four Front has completed the first phase of its 558,000-square-foot planting and processing plant in Illinois. Innovative Industrial Properties, Inc. (NYSE: IIPR) is financing the acquisition, with completion scheduled for the second quarter of 2022.
4Front announced financial results for the third quarter of 2021, with system-wide pro forma revenue of $33.1 million compared to $22.3 million in the third quarter of 2020. As a result, the company generated $7.5 million in adjusted earnings before deduction. Interest, tax, depreciation and amortization in the third quarter of 2021, an increase of 103% over the third quarter of 2020. Under GAAP, revenue of $25.9 million was recorded, an increase of 70% year over year and a decrease of 4% from the quarter The second of 2021. The New England Hemp Company, the best cannabis operator in Massachusetts, was purchased in October. The purchase includes a 55,000-square-foot planting facility, more than twice the number of flower-producing companies in the state.
FFNTF stock is trading at $1.02 on December 30y Up 2.51% over the last five trading days. The 52-week stock price is between $0.88 and $1.98 and is up 12.09% to date. According to analysts at CNN Business, FFNTF stock has an average target price of $1.78 per share. This median estimate would be a 74.34% increase from its last traded price of $1.02.
[Read More] Best American hemp stock to buy right now? 2 to watch before January
Lowell Farms Inc is a California-based cannabis company that is rapidly expanding its market share. The company primarily focuses on innovative production capabilities, artisanal cannabis cultivation, and the development of an award-winning portfolio of cannabis brands licensed to cannabis consumers. Ascend Wellness Holdings has signed a licensing agreement with the company. The two companies will work together to provide the Lowell Smokes brand to dispensaries in Massachusetts and Illinois. Lowell and Ascend announced in November that the Lowell Smokes brand would be coming to Michigan. In addition, Lowell Smokes-ready packages will be accessible in Illinois, according to the company. Lowell Smokes will now be available to Illinois residents at eight retail locations across the state.
Lowell Farms released financial results for the third quarter of 2021 in November, with sales of $12.5 million, down $12 million from the third quarter of 2020. Due to poor wholesale rates, flower wholesale sales fell 71%, or $3.9 million. , in the third quarter. The company incurred an operating loss of $7 million and a net loss of $8.7 million for the quarter. Lowell’s adjusted EBITDA was negative $5.2 million in the third quarter of 2021. At the Hall of Flowers trade event in September, the company launched a limited edition Hash Wrap. LOWLF stock is trading at $0.3379, down 37.43% in the last month. Currently, the stock has a 52-week price range between $0.292 and $2,149 and is down 70.96% year-to-date.
[Read More] Top Penny Marijuana Stocks to Buy? 2 with price targets above 200% of analysts