Investing In Cannabis Penny Stocks In 2022
Are you looking for top marijuana stocks to buy for 2022? To start the year the best cannabis stocks to invest in are showing market volatility. After showing some upside in yesterday’s trading many have given back that upside in today’s trading before noon. One-way investors have taken advantage of the volatility in cannabis stocks is by trading marijuana penny stocks. In general penny stocks are any stocks that trade under the $5 price point.
Specifically, this area of the market is considered a higher risk-reward area that many active traders prefer investing in on a short-term basis. For the most part, this includes using day trading and swing trading techniques to produce gains in the market. In 2021 many of the best marijuana penny stocks rallied in the first quarter delivering significant upside for short-term traders. Since that time the declines in cannabis stocks have been seen across the entire market for the rest of 2021.
In general, these declines are mostly tied to delays with federal marijuana legalization in Congress. As a new year begins, we could begin to see further attempts to end cannabis prohibition as things progress. In addition, because of recent declines in cannabis stocks, most are starting 2022 with some potential upside in the future.
Learning To Make Better Investments In 2022
Before investing in top marijuana stocks, it’s important to do your own due diligence on a company. Researching a company’s financial results and press releases can help you find the best-performing companies in the industry. In addition, looking into a stock’s movement in the market can help you find the best entry points for your trades. At the present time, many investors use trading tools to analyze patterns in a penny stock to achieve the best results. Learning how to use these tools to your advantage can allow you to become a successful trader.
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As this trading week progresses making a list of top cannabis stocks to watch in January can help find the best positions and entry points. With many analysts predicting a substantially volatile year in the market penny pot stocks could provide gains for active traders in the market. With this in mind, let’s look at 2 top marijuana penny stocks for your 2022 watchlist.
Top Marijuana Penny Stocks To Watch In January 2022
- Gage Growth Corp. (OTC: GAEGF)
- Goodness Growth Holdings, Inc. (OTC: GDNSF)
Gage Growth Corp.
Gage Growth Corp. provides branding and support services to linked licensed marijuana and marijuana-related product growers, distributors, and sellers in Michigan. The company, which was previously known as Wolverine Partners Corp., primarily supplies medicinal and adult-use cannabis in Michigan. The city and state have granted it 19 Class C cultivation licenses, three processing licenses, and 15 provisioning center approvals. Gage revealed earlier this year that the popular cannabis brand COOKIES will be available in Canada. COOKIES is one of the most well-known cannabis brands in the world, with a massive footprint in the business. The company announced the opening of its 18th dispensary in Michigan in a news release on January 4th.
Gage reported sales of $27.2 million for the third quarter of 2021 in November, rising 119.6% year over year. The company ended the quarter with $17.7 million in revenue and 36.5 percent gross margins. Wiz Khalifa, a multi-platinum recording artist, has established a partnership with the firm. In Michigan, Gage will produce and sell the Khalifah Kush brand of premium cannabis products. According to the company, TerrAscend Corp. (OTC: TRSSF) gained final clearance from the Ontario Superior Court of Justice to purchase GAGE in November. GAEGF stock is trading at $1.73 on January 4th down 5.46% for the trading day. Currently, the stock has a price range of $1.41-$3.00 and is down 10.05% in the past six months.
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Goodness Growth Holdings, Inc.
Goodness Growth Holdings, Inc. is a cannabis and intellectual property incubator specializing in bringing technology, science, and engineering to market. Resurgent Biosciences, a subsidiary of Goodness Growth, plans to expand into psychedelic medicine clinical research. The company now operates 18 retail dispensaries across the United States. Goodness Growth completed the purchase of four cannabis licenses in Nevada prior to changing its name. With these licenses, Goodness will be able to cultivate and manufacture cannabis for both the medicinal and recreational markets in Nevada. According to the company, the Charm City Medicus Dispensary in Maryland was completed in November. Goodness’ position in the Maryland medicinal cannabis market is expanding by this agreement.
The company announced the release of new cannabis edibles called HIColor cannabis-infused gummies in December. The company’s affiliate, Vireo Health, said in October that it will launch flower cannabis products in New York. On November 10th, the company reported third-quarter 2021 results, with GAAP sales of $13.4 million, up 7.2 % year over year. In addition, gross profit was $5.1 million, accounting for 38% of revenue. Because of growing operational expenditures and interest expenses, Goodness recorded a net loss of $6.2 million in the third quarter of 2021.
On January 4th, GDNSF stock was trading at $1.63, up 20.42% over the past five trading days. The stock is currently trading in a 52-week price range of $1.20-$3.84 and is up 15.58% year to date. GDNSF stock has a consensus price target of $2.96 per share, according to CNN Business analysts. In this situation, this forecast would be a gain of 80.04% over the current trade price of $1.63.
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