Could These Marijuana Penny Stocks To Buy Be Setting Up For A Rally This Summer?
Could These Top Penny Stocks Produce Gains This Summer?
Investing in Top Cannabis Penny Stocks In 2021
Starting this week in July most of the cannabis sector continues to consolidate at current market values. So, could marijuana stocks to buy be setting up for a move higher in the market? Since the start of June, there has been a slight change in momentum for top marijuana stocks. Last month the cannabis sector saw modest gains in trading that have continued into the first half of trading in July.
One area of the cannabis sector that could produce gains for traders this summer is marijuana penny stocks. For those not familiar with penny stocks these are any stocks that are trading under the $5 stock price. Although this area of the market is known to be extremely volatile many investors have locked in significant returns using short-term trading methods.
In the first quarter of 2021 top marijuana penny stocks rallied until almost mid-February. Now after several months of declines in the market cannabis penny stocks could be primed for another market rebound. Essentially, one catalyst that could bring top-pot penny stocks some upward momentum is cannabis reform on the federal level. At the present time, there are many bills lawmakers have introduced in Congress that could affect US cannabis policy.
Events That Could Affect Top Marijuana Penny Stocks In 2021
For example, The SAFE Banking Act is a bill that specifically allows banks to do business with cannabis companies like any other corporation. As it stands most cannabis companies are forced to use a cash-based system to do business at the current time. This would also allow cannabis companies to receive financing from the banks another prospect that could help the cannabis industry grow.
As the push for federal cannabis reform continues it seems like only a matter of time before we see a new federal position on cannabis use in America. In any case, most leading cannabis companies in the US are delivering strong revenue growth in 2021. In Canada, top cannabis companies have not fared as well with pandemic shutdowns affecting their earnings in a negative fashion.
But for top marijuana penny stocks, this first-quarter earnings season did not have a real impact on how the stocks traded in the market. In fact, even though the US companies reported strong revenue growth they continued to see market declines. With this in mind, we can begin to research some top marijuana penny stocks for your list this week.
Best Marijuana Penny Stocks To Watch Right Now
Goodness Growth Holdings, Inc.
Goodness Growth Holdings, Inc. is focusing on bringing the best technology, science, and engineering to the cannabis industry. In June Goodness Growth announced its subsidiary Resurgent Biosciences plans on expanding into clinical research efforts into psychedelic medicine. Currently, Goodness Growth has 16 retail dispensaries across the US. As it stands the company produced gross profit margins of $5.6 million up 42.6% from the prior year. This is a result of improving operating efficiency across its core markets.
In addition, Goodness Growth closed on the purchase of 4 cannabis licenses in Nevada before changing its name. With these licenses, Goodness will be able to cultivate and produce cannabis products for both the medical and recreational markets in Nevada. In July Goodness announced the agreement to acquire Charm City Medicus Dispensary in Maryland. This transaction will improve the companies scale in the Maryland medical cannabis market and expand its retail footprint.
GDNSF stock is trading at $1.80 on July 12th up 25.72% year to date. In March GDNSF stock reached a high of $3.84 per share. Now that GDNSF stock gives investors exposure to the cannabis market and also psychedelic medicine this could see some upside this summer. As the cannabis sector continues to show some upside in trading GDNSF stock could be a top marijuana penny stock to add to your watchlist this week.
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Neptune Wellness Solutions Inc.
Neptune Wellness Solutions Inc. completed a transition to a fully integrated consumer packaged goods company. Officially the company is launching a lineup of CBD beverages in the US including CBD infused flavored teas and lemonades. In the meantime, the company is transitioning from a B2B cannabis and hemp extraction company to a consumer products company. With a new focus on consumer products, the company is providing cannabis, nutraceuticals, beauty and personal care, and organic food & beverage products.
Recently, Neptune secured a supply agreement with Alberta Gaming, Liquor, and Cannabis expanding the company’s presence into over 1600 retailers in Canada. The company can now sell recreational cannabis products through its Mood Ring and PanHash brands across British Columbia, Alberta, Ontario, and Quebec. Last month the company announced it launched Mood Ring cannabis products including flowers in British Columbia. On July 5th Neptunes provided a biweekly update to its previously disclosed management cease trade orders.
NEPT stock is trading at $1.15 on July 12th down 26.28% year to date. In February NEPT stock reached a high of $3.60 and is down 19.58% in the past 30 days. According to analysts at CNN Business NEPT stock has a 12-month median price target of $2.68 per share. This forecast would represent an increase of 133.45% from its current trading price of $1.15. For this reason, NEPT stock could be one of the best marijuana penny stocks to watch in July.