Making A List Of Top Marijuana Penny Stocks To Buy? 4 To Watch Next Week
Could These Penny Stocks Deliver Gains In 2021?
Investing In The Best Cannabis Penny Stocks In 2021
Are you looking for ways to invest in top marijuana stocks in 2021? As concerns grow over the market and the Delta variant’s future effects. Investors fear that economic growth could bring down the market. This prompted more investors to look for short-term investments. One area of the market that could be positioned for gains in marijuana penny stocks. After rallying in the first quarter the best cannabis stocks under $5 have seen several months of declines in the market.
Now after consolidating at lower levels for some time, they could be ready to rebound in 2021. For those not familiar with penny stocks these are any stock trading under the $5 price point. Considered a high-risk area of the market many investors prefer to trade penny stocks on a short-term basis. Although the cannabis sector has been losing value for several months leading cannabis companies have been reporting strong revenue growth and improving their balance sheets.
In 2021 this has not translated into gains in the market, but it does show growth in the cannabis industry and the improving health of leading cannabis companies. As it stands many top pot stocks are trading close to some of their lowest values this year. For new investors, this could be time to put some of the best marijuana penny stocks on your watchlist for August.
Investing In Penny Stocks In 2021
Before investing in top marijuana stocks, it is important for traders to do their due diligence on a company before investing. Understanding how a particular sector in the market is performing and how a pot stock is behaving during certain market trends can help you establish the best investments.
As things continue to progress in the US and Canada both countries are showing significant growth in the cannabis market. In the US more states are establishing medical and recreational markets while the world waits on the federal government to end cannabis prohibition.
Many cannabis companies believe by 2022 Congress will pass some form of federal reform whether it be banking reform or full legalization. In Canada, these companies are preparing to enter the US market and continue growing in the Canadian one as well. As we head into mid-august trading these could be some of the best marijuana penny stocks for your watchlist next week.
Best Marijuana Penny Stocks To Watch In August
- Greenlane Holdings, Inc. (NASDAQ: GNLN)
- Goodness Growth Holdings, Inc. (OTC: GDNSF)
- Neptune Wellness Solutions Inc. (NASDAQ: NEPT)
- Sundial Growers Inc. (NASDAQ: SNDL)
Greenlane Holdings, Inc.
At the present time, Greenlane Holdings, Inc. is one of the largest cannabis accessories companies serving the global market. Specifically, the company is a platform that sells premium cannabis accessories, child-resistant packaging, and specialty vaporization products in the US and around the world. Greenlane has a customer base of more than 11,000 retail locations across the globe. Recently, the company began a merger with KushCo Holdings, Inc. (OTC: KSHB) is an all-stock deal creating a new provider of cannabis ancillary products and packaging.
The company released its first-quarter 2021 financials that show a strong start this year. In detail, the company saw Greenlane Brand sales set back-to-back quarterly sales records and account for 25% of total revenue. In the first quarter, Greenlane Brands saw sales of $8.5 million. Additionally, total revenue increased to $34 million in Q1 2021. At the present time, Greenlane expects the proposed merger with KushCo to be complete in Q3 2021. In July Greenlane reported preliminary second-quarter 2021 results that show it may miss analyst’s expectations. Specifically, the company is reporting net sales of $34.5 million with a gross margin of 21%-22%.
Goodness Growth Holdings, Inc.
Goodness Growth Holdings, Inc. is focusing on bringing technology, science, and engineering to the cannabis market. Recently, Goodness Growth announced its subsidiary Resurgent Biosciences plans on expanding into clinical research efforts in psychedelic medicine. Currently, the company has 17 retail dispensaries across the US. The company produced gross profit margins of $5.6 million up 42.6% year over year. Goodness Growth closed on the purchase of 4 cannabis licenses in Nevada before changing its name. These licenses will allow Goodness to cultivate and produce cannabis products to both the medical and recreational markets in Nevada.
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 presence in the state. On August 13th Goodness reported its Q2 2021 financials with GAAP revenue of $14.2 million an increase of 16% year over year. As a result, the company set a record GAAP gross profit margin of 49% reflecting improving efficiency in their operations.
Neptune Wellness Solutions Inc.
In Canada, Neptune Wellness Solutions Inc. completed a transition to a fully integrated consumer packaged goods company. Currently, the company is launching a lineup of CBD beverages in the US including CBD-infused flavored teas and lemonades. At the present time, Neptune is transitioning from a B2B cannabis and hemp extraction company to a consumer products company. Now, with a new focus on consumer products the company is providing cannabis, nutraceuticals, beauty, and personal care, and organic food & beverage products.
In 2021 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. On August 12th Neptune’s delivered its first-quarter fiscal 2022 results with revenue of $12.4 million compared to $11.2 million year over year. Although still reporting a gross profit loss of $2.9 million this is an improvement from the $3.3 million In Q1 of fiscal 2021.
Sundial Growers Inc.
Sundial Growers Inc. engages in the production and marketing of cannabis products for the adult-use market in Canada. At the present time, the company produces and distributes inhalable products, such as flowers, pre-rolls, and vapes. Sundial has two main segments they are achieving profits from cannabis operations and the other company investments. Specifically, the company realized C$2.8 million in interest and fee revenue from long-term loans to third parties. Sundial has C$12.9 million in realized and unrealized gains from investments in securities. In the past few months Sundial has been gaining interest from Reddit and Robinhood investors.
On August 12th the company released its second-quarter 2021 financials with net revenue for the company’s cannabis segment coming in at $9.2 million. In addition, its other investment segments delivered revenue of $5.7 million and $3.7 million. In total the company saw total net revenue of $18.6 million. Specifically, gross cannabis revenue was $12.7 million an increase of 8% sequentially. Although the company is showing revenue growth it sustained a net loss of $52.3 million for Q2 2021. This is down from the $60.4 million net loss in Q2 2020.