Top Canadian And Ancillary Cannabis Stocks In August 2022
Are These Pot Stocks On Your Watchlist This Week?
Best Marijuana Stocks To Watch This Week
Are top marijuana stocks a buy in August? The cannabis industry has gained momentum going into this week after hitting fresh lows at the beginning of July. There are several potential catalysts for leading cannabis stocks right now. In the next months, many cannabis reform bills in Congress may find support. If it does, it may act as a stimulus for the best marijuana stocks for the remainder of 2022. Canadian cannabis stocks and ancillary marijuana companies have witnessed significant drops this year.
For those who don’t know, ancillary cannabis companies are businesses that serve the marijuana industry without ever handling the plant directly. Generally speaking, a large variety of companies support the cannabis market. Additionally, throughout the first half of 2022, Canadian marijuana stocks have also seen steep drops. One of the first sectors of the cannabis market to benefit from any stimulus may be the Canadian cannabis market.
Delays in US federal cannabis legalization have had a substantial impact on market value, and LPs are now struggling to turn a profit in Canada. Canadian cannabis companies have attracted significantly more investor interest due to being traded on the main US stock exchanges. For this reason, any sector momentum may begin with Canadian cannabis companies before spreading to the rest of the market. Let’s examine three of the best Canadian marijuana stocks from your August list in more detail.
Best Marijuana Stocks To Watch 2nd Week Of August
- Village Farms International, Inc. (NASDAQ: VFF)
- High Tide Inc. (NASDAQ: HITI)
- Greenlane Holdings, Inc. (NASDAQ: GNLN)
Village Farms International, Inc.
In North America, greenhouse-grown tomatoes, bell peppers, and cucumbers are developed, sold, and distributed by Village Farms International, Inc. and its affiliates. The company also does cannabis and CBD-related operations in the US and Canada. Pure Sunfarms, a wholly owned subsidiary of Village Farms, is one of the biggest cannabis businesses in North America. Pure Sunfarms has been given a delta 2 greenhouse with a cannabis production license, doubling its output capacity. Village Farms unveiled a new corporate design and website last year under the domain name www.villagefarms.com.
Consolidated sales increased by 34% year over year to $70.2 million from $52.4 million during the first quarter of 2022, according to data provided in May. Compared to a loss of $7.4 million, or $0.10 per share, the prior year, the company recorded a consolidated net loss of $6.5 million, or a negative $0.07 per share. Additionally, compared to the higher adjusted EBITDA, the adjusted EBITDA for the entire company was $6.1 million ($0.4 million) lower. In terms of net sales, the cannabis industry as a whole saw an annual increase of 65 percent to $28.8 million, or 41 percent of Village Farms’ total income.
Notably, the adjusted EBITDA for the whole cannabis segment increased by 9 percent to $2.7 million from the prior year. In March, Pure Sunfarms received EU GMP certification, allowing the company to export cannabis products to European markets. The cannabis concentrates from Cookie will also be imported into Canada by Pure Sunfarms and NOYA. The company will report its second quarter 2022 results on August 9th before the market opens.
VFF Stock Performance
VFF stock closed at $3.18 on August 5th up 6% in the last five trading days. Currently, the stock has a 52-week price range of $2.517-$10.13 and is down 50.47% year to date. According to analysts at CNN Business VFF stock has a 12-month median price target of $6.65 per share. In this case, this would represent an upside of 109.12% from its last trading price of $3.18.
High Tide Inc.
High Tide Inc. is a cannabis dispensary that also manufactures and sells products associated with cannabis. The company’s portfolio includes a well-known Canadian cannabis brand as well as a leading international producer and distributor of cutting-edge smoking accessories. The company was established to build the biggest accessory buying online in the globe. There are now 127 stores selling the High Tide brand in Canada. The UK is Blessed CBD’s main market, and High Tide bought the company in October 2021. The company expanded to become the biggest supplier in the province when it established its 66th retail cannabis location in Alberta. When High Tide purchased NuLeaf Naturals, it made the largest acquisition the company has ever done.
The business also launched the Grasscity brand, which distributes CBD products made from hemp, and completed the acquisition of Smoke Cartel Inc. High Tide entered the US cannabis industry by swiftly purchasing popular online retailer Dankstop. According to financial data provided by High Tide, sales climbed by 98% in the second quarter of 2022, while adjusted EBITDA increased for the ninth straight quarter. Same-store sales sequentially grew from the most recent quarter to the prior one by 23%. Sales also rose, from $40.9 million at the same time in 2021 to $81.0 million in the second quarter of 2022. Revenue climbed sequentially by 12 percent from the prior quarter to the current one. In the second quarter of 2022, gross profit rose by 51% to $22.7 million from $15.0 million in the corresponding period of 2021. The business purchased nine active retail cannabis stores from Choom Holdings in July.
HITI Stock Performance
The shares of HITI finished at $1.45 on August 5th down 31.92% in the last month. The stock is currently trading in a 52-week price range of $1.37 to $7.98, down 65.88% year to date. HITI stock has an average price target of $6.48 per share, according to Tip Ranks analysts. In this example, the upside would be 346.90% over the current market price of $1.45.
Greenlane Holdings, Inc.
Greenlane Holdings, Inc., is a cannabis accessories company with an international reputation The company’s main products include high-end vaporizers, child-safe packaging, and cannabis accessories that are sold in the US and other nations. Presently, Greenlane goods are available in more than 11,000 retailers throughout the world. The merger between Greenlane and KushCo Holdings, Inc. was finished in 2021. The company acquired DaVinci, a well-known designer, and manufacturer of premium portable vaporizers.
The company’s overall first-quarter 2022 sales increased by 37 percent in May, from $34.0 million to $46.5 million. Additionally, from $34.0 million in Q1 2021 to $46.5 million in Q1 2022, net sales climbed by 37%. The primary driver of the net sales’ year-over-year increase was the KushCo merger. When post-merger sales from KushCo were eliminated, revenue fell by 47% to $18.1 million from $34.0 million for the same period in 2021. A crucial agreement between Greenlane and Universal Distribution for the distribution of Greenlane brands throughout Latin America was concluded. When it has finished buying KushCo Holdings, Greenlane may be one of the biggest providers of support services worldwide. On August 4th the company announced a 1 to 20 reverse stock split that will occur on August 9th after the close.
GNLN Stock Performance
GNLN stock closed at $0.1582 on August 5th up 2.73% in the past five trading days. Currently, the stock has a 52-week price range of $0.14-$3.09 and is down 83.59% year to date. According to analysts at Tip Ranks GNLN stock has a 12-month average price target of $2.00 per share. In essence, this would represent an increase of 1169.84% from its current trading price of $0.1582.
Investing In Canadian Pot Stocks For 2022
Canadian cannabis businesses might not do as well as their American competitors, but investors could gain in the short term. Examining a company’s press releases and financial filings will help you choose the finest investments. In order to generate rapid gains, investors may take advantage of the projected significant price volatility in the cannabis sector in 2022. Remember that these are riskier assets and need a more complex trading plan. Congress may serve as a significant catalyst for the cannabis business as summer approaches. It is important to keep a watch on Canadian marijuana stocks to buy in August 2022.