Cannabis Stocks And 2022 Market Volatility
This year has started off as a volatile week for top marijuana stocks. After getting off to a good start and showing upside to begin the trading year many cannabis stocks are declining near the lows reached in December 2021. During volatile markets, some investors prefer trading marijuana penny stocks on a short-term basis. Penny stocks are any stocks that trade under the $5 threshold. In the cannabis sector, these pot stocks are considered a high-risk area of the market due to extreme market volatility.
For this reason, many active traders prefer using short-term methods like day trading and swing trading to produce gains with marijuana penny stocks. For the most part, cannabis companies saw significant growth in 2021 and delivered strong financial results. This shows that although they have not performed well in the market the industry is still growing rapidly on the state level.
According to a report from Prohibition Partners global sales of CBD, medical and adult-use cannabis reached $37.4 billion in 2021 and are forecast to reach $102 billion by 2026. This shows significant growth for the industry for the next few years. For many investors, these recent declines could offer opportunities for short and long-term plays in the cannabis sector.
Finding The Best Pot Stocks And Learning To Make Better Trades
Before investing in cannabis stocks, it’s always important to do your own research on a company before starting a position. Looking into a company’s press releases and financial results can allow you to find the best-performing companies in the industry. Additionally studying how a stock moves in the market can help you establish the best returns on your investments.
Learning to use trading tools and technical analysis to achieve gains in the market can help you become a successful trader. Also keeping your losses to a minimum when trades do not do what you expect is key to achieving gains. Let’s look at 2 top cannabis penny stocks under $2 this week.
Top Marijuana Stock To Watch Under $2 In January 2022
Acreage Holdings, Inc.
Acreage Holdings, Inc. is a multi-state cannabis producer and retailer with locations all over the US. The company has a deal with Canopy Growth Corporation (NASDAQ: CGC) that might lead to an acquisition once the US ends prohibition. Acreage may now play a major role in the entrance of Canopy entering the US market. New York and New Jersey have large land, and the expanding markets in both states might see a significant increase in the next years. Currently, Acreage now has the maximum number of dispensaries permitted in New Jersey and is aiming to complete its growing facility there. The corporation bought cultivation, processing, and retail operation in Ohio in October. As a result of the agreement, Acreage will obtain a 70,000-square-foot growing facility and five functioning retail stores.
Acreage announced its third-quarter 2021 results in November, showing consolidated revenues of $48.2 million, up 52 percent from the previous year. Additionally, the company’s gross margin increased by 49% in Q3 2021. As a result, Acreage’s net loss in Q3 2020 was $12.3 million, down from $40.5 million the previous quarter. The company made $6.5 million in Adjusted EBITDA in the third quarter of 2020, compared to a loss of $6.9 million the previous quarter. Also, important Acreage recently secured a $150 million credit facility to accelerate growth initiatives from AFC Gamma, Inc. (NASDAQ: AFCG).
ACRHF Stock Performance
ACRHF stock is trading at $1.59 on January 6th down 15.43% in the last month of trading. The stock has a 52-week price range of $1.44-$9.00 and is down 55.83% in the last six months. According to analysts at Market Beat ACHRF stock has a consensus price target of $7.00 per share. In this case, this would represent an increase of 340.3% from its last trading price of $1.59.
Red White & Bloom Brands Inc.
Red White & Bloom Brands Inc. is a company that aspires to be one of the nation’s premier multi-state cannabis operators. The company is largely expanding in the legal cannabis and hemp sectors, with retail locations in Michigan, Illinois, Massachusetts, Arizona, Florida, and California. Recently, RWB bought all of Acreage Holdings Inc.’s Florida companies. RWB will now have eight retail sites around Florida, as well as a 114,000-square-foot warehouse and a 400-square-foot office. In August, the company finished the purchase of a 45,000-square-foot greenhouse on 4.7 acres in Florida. The acquisition provides near-term cultivation capacity while the business works on its 114,000 square foot plant in Sanderson, Florida.
RWB released financial results for the third quarter of 2021 in November, with revenue of $11.8 million, up % year over year. The company’s EBITDA for the third quarter was $5.9 million, compared to a loss of $5.8 million in the third quarter of 2020. RWB lost $5.5 million in the third quarter of 2021, compared to $9.5 million in the third quarter of 2020. RWB’s sales climbed 386 % year over year to $36.9 million in the third quarter. It’s also worth noting that the corporation lost $73.8 million in the nine months ended September 30, 2021.RWBYF stock is trading on January 6th at $0.3442 down 4.54% in the past month. The stock has a 52-week price range of $0.289-$1.65 and is down 61.88% in the past six months.