Top Cannabis Stocks To Watch In This Downtrend
In October the top marijuana stocks to buy are trading near some of the lowest market values seen in 2021. From highs in February, cannabis stocks have declined for the past eight months. Since September the cannabis sector has also seen enhanced market volatility. One way investors take advantage of this increased volatility is by trading top marijuana penny stocks. For those not familiar with penny stocks these are essentially any stock trading under the $5 price point.
In general, the top cannabis penny stocks can move rapidly sometimes gaining significant upside in a short period. Because of this many investors prefer trading these penny stocks on a short-term basis. On Columbus Day the top marijuana penny stocks continue to trade at lower levels. One major event that would boost top cannabis stocks in 2021 is federal marijuana legalization and reform. This year many investors believed federal marijuana legalization would have happened earlier in the year.
But with Congress still working out the details of cannabis legalization the cannabis sector has been impacted heavily. In the past month, we have seen an increase in activity from Capitol Hill. In the House, lawmakers passed the SAFE Banking Act and the MORE Act which would end prohibition. If things continue to show progress in the Senate, we could see some form of cannabis reform heading into 2022.
How To Invest In Marijuana Stocks In Todays Market
For investors, marijuana penny stock trades are known to be high-risk high reward positions. Using short-term trading methods like day trading and swing trading investors can produce returns on a short-term basis. Before investing in any company, it’s important to do your own due diligence and research. Generally speaking, watching how a stock performs in the market and researching a company’s earnings may help you produce the best returns on your investments.
In the second week of October, many top marijuana penny stocks are trading at levels that could produce upside when the sector rebounds. Finding these pot stocks before they gain momentum can help you lock in the most gains. Let’s look at 3 top marijuana penny stocks for your watchlist right now.
Best Cannabis Penny Stocks In Q4 2021
Lowell Farms Inc.
At the present time, Lowell Farms Inc is a company establishing a large presence in the California cannabis market. Primarily, the company has advanced production capabilities, grows artisan craft cannabis, and built a portfolio of award-winning licensed cannabis brands for cannabis consumers. The company established a licensing agreement with Ascend Wellness Holdings. In detail, the two companies will bring Lowell Smokes brand to dispensary locations in Massachusetts and Illinois. Additionally, the company announced its iconic Lowell Smokes pre-roll packs will be available in Illinois. Now, Lowell Smokes will be available to Illinois consumers throughout 8 retail locations in the state.
Lowell Farms reported record cultivation output and record second-quarter 2021 revenue of $15.2 million. The company sustained an operating loss of $473 thousand an improvement from the $.8 million loss in Q2 2020. As a result, the company produced gross margins of 38% Lowell Farms announced it is commissioning a first-of-its-kind cannabis processing facility in Salinas Valley, California. This facility will be capable of processing 250,000 lbs. of flower cannabis annually. In September the company debuted a limited-edition Hash Wrap at the Hall of Flowers trade show.
LOWLF Stock Performance
LOWLF stock closed on October 11th at $1.05 down 8.65% in the past month. The stock has a 52-week price range of $0.887-$2.149 down 10.53% year to date. According to analysts at Wallet Investor LOWLF stock has a 1-year forecast price target of $1.115 per share. The stock is down 4.05% In the past five trading days.
Fire & Flower Holdings Corp.
Fire & Flower Holdings Corp. is a leading adult-use cannabis retailer with more than 85 corporate-owned stores in its network in Canada. In general, the company’s wholly-owned technology development subsidiary, Hifyre Inc., is advancing its retail operations model while providing additional independent high-margin revenue streams for the company. Additionally, Fire & Flower entered the U.S. cannabis market through a strategic licensing partnership with American Acres. Specifically, this licensing partnership and acquisition option with American Acres gives Fire & Flower entry into the California, Arizona, and Nevada cannabis markets. In addition, Fire & Flower subsidiary Hifyre entered into a strategic agreement with leading U.S. analytics company BDSA.
Fire & Flower delivered fiscal first-quarter 2021 revenue of $44.1 million up 91% year over year. As it stands this is, Fire & Flowers fourth consecutive quarter of positive adjusted EBITDA with $2.3 million. Specifically, the company’s Hifyre digital retail platform generated $2.8 million in Fiscal Q1 an increase of 252% year over year. Fire & Flower sustained a net loss of $61.6 million in the first quarter. The company announced a strategic supply agreement to expand its Humbles portfolio to Fire and Flower customers online and in-store throughout North America. Fire Flower officially entered the California market as American Acres changed its name to Fire Flower US Holdings. In September the company completed the acquisition of PotGuide and Wikileaf continuing to expand its digital strategy. In October the company announced the expansion of the Circle K co-location pilot program.
FFLWF Stock Performance
At the present time, FFLWF stock closed on October 11, 2021, at $0.69 up 4.06% in the past five trading days. Currently, the stock has a 52-week price range of $0.60-$1.20 and is currently flat year to date. According to analysts at Stock Invest FFLWF stock is expected to decline 15.16% in the next 3 months. In the meantime, as the cannabis sector continues to decline in the market these could be the best marijuana penny stocks for your list in October.