Top Marijuana Stocks For Your 2022 Watchlist
Are you looking for top marijuana stocks to watch in 2022? As 2021 ends many of the best cannabis stocks to invest in have declined significantly as the year progressed. This is mostly due to delays in Congress with passing federal marijuana legalization and reform. After Senators removed the SAFE Banking Act from the NDAA this month any possibility of seeing some type of federal cannabis reform this year ended. But throughout 2021 we have seen an increase in support from politicians on both sides of the coin to bring an end to marijuana prohibition.
In general, most of the cannabis sector traded on the potential for cannabis reform this year. Although many leading companies showed strong earnings in 2021 this did not translate into gains in the market. Now with most of the cannabis sector trading near the lowest levels seen this year investors have experienced substantial market volatility in 2021. One way to take advantage of the increased volatility is by trading marijuana penny stocks.
Penny stocks are any stocks that trade under the $5 threshold. Many active traders prefer to trade these stocks using short-term methods like day trading and swing trading techniques. Although these are considered higher-risk investments, they can produce significant gains in a short period of time. In addition, because of the lower stock prices, active traders can establish larger positions with less capital. This allows traders to take advantage of smaller price fluctuations in a penny pot stock and produce returns from these moves.
Learning How To Actively Trade Penny Pot Stocks
Before investing in any marijuana stocks, it’s always important to do your own due diligence on a company. Researching a company’s financials and following how the stock performs in the market can help you achieve the best returns on your investments. Learning how to use trading tools to establish winning trades can help you become a successful trader. As this week shows some upside for top marijuana penny stocks in December let’s look at 2 top cannabis penny stocks for your watchlist before 2022.
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Marijuana Penny Stocks For Your 2022 Watchlist
- 4Front Ventures Corp. (OTC: FFNTF)
- Lowell Farms Inc. (OTC: LOWLF)
4Front Ventures Corp.
4Front Ventures is a US MSO and retailer specializing in mass-produced, low-cost, high-quality branded cannabis products. Currently, the company sells over 25 different cannabis products. To mention a few states, 4Front has dispensaries in Illinois, Massachusetts, California, Michigan, and Washington. 4Front has finished the first phase of a 558k sq. ft. cultivation and manufacturing factory in Illinois. Innovative Industrial Properties, Inc. (NYSE: IIPR) is funding the acquisition, and work is slated to be completed in Q2 2022.
4Front announced financial results for Q3 2021, with systemwide pro forma revenue of $33.1 million compared to $22.3 million in Q3 2020. As a consequence, the firm generated $7.5 million in Adjusted EBITDA in Q3 2021, up 103% from Q3 2020. Under GAAP, the revenue of $25.9 million was recorded, an increase of 70% year over year and a 4% decrease from Q2 2021. New England Cannabis Corporation, a best-in-class cannabis operator in Massachusetts, was bought by the business in October. The purchase includes a 55,000-square-foot growing facility, more than doubling the number of enterprises producing flowers in the state.
FFNTF stock is trading at $1.02 on December 30th up 2.51% for the past five trading days. The stock has a 52-week price range of $0.88-$1.98 and is up 12.09% year to date. According to analysts at CNN Business FFNTF stock has a median price target of $1.78 per share. This median estimate would represent an upside of 74.34% from its last trading price of $1.02.
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Lowell Farms Inc.
Lowell Farms Inc is a cannabis company based in California that is rapidly expanding its market share. The company primarily focuses on innovative production capabilities, artisan craft cannabis cultivation, and the development of an award-winning portfolio of licensed cannabis brands for cannabis consumers. Ascend Wellness Holdings has signed a licensing arrangement with the company. The two companies will work together to provide the Lowell Smokes brand to dispensaries in Massachusetts and Illinois. Lowell and Ascend announced in November that the Lowell Smokes brand will be coming to Michigan. In addition, the renowned Lowell Smokes pre-roll packets will be accessible in Illinois, according to the company. Lowell Smokes will now be accessible to Illinois residents at eight retail locations around the state.
Lowell Farms released financial results for the third quarter of 2021 in November, with sales of $12.5 million, a decline of $12 million from the third quarter of 2020. Due to poor wholesale rates, sales of bulk flower decreased 71%, or $3.9 million, in the third quarter. The corporation had a $7 million operating loss and an $8.7 million net loss for the quarter. Lowell’s Adjusted EBITDA was negative $5.2 million in the third quarter of 2021. At the Hall of Flowers trade event in September, the business launched a limited-edition Hash Wrap. LOWLF stock is trading at $0.3379 down 37.43% in the last month. Currently, the stock has a 52-week price range of $0.292-$2.149 and is down 70.96% year to date.
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