Best Cannabis Stocks To Watch In January 2022
Are top marijuana stocks on your radar for 2022? With most of the cannabis sector starting the new year establishing new 52-week lows in the market cannabis stocks could be trading at discounted values. Because of delays with establishing US federal marijuana decriminalization and reform the best pot stocks have lost significant value from their February 2021 highs. In February 2021 investors were expecting Congress to pass new policies regarding cannabis only to be stopped in the Senate for the entire year.
To start this year, it appears many of the top pot stocks have priced in the possibility that investors will not see cannabis reform in 2022 as well. As trading in 2022 commences many analysts are forecasting more market volatility than what was seen in 2021. One way many cannabis investors take advantage of market volatility is by trading marijuana penny stocks.
For those not familiar with penny stocks these are considered any stocks that trade under the $5 stock price. In general penny stocks are known for having substantial market volatility and many active traders prefer trading them on a short-term basis. With most of the best marijuana stocks showing declines in this week’s trading, it could be time to make a list of the best cannabis stocks for 2022.
Becoming A Better Active Trader And Finding The Best Pot Stocks
Before starting an investment it’s important to do your research on the companies available in the market. Researching a company’s earnings and studying how a stock behaves in the market are key elements in becoming a successful trader. Because marijuana stocks are known for significant volatility finding the right entry point for your position is a key element in producing gains on short positions.
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In the next few years, the cannabis market is expected to grow substantially regardless of federal cannabis reform. As new states establish legal medical and recreational markets US cannabis sales are forecast to double in the next five years. With this in mind let’s look at 2 top marijuana stocks for your penny stock list in January.
Best Cannabis Penny Stocks For This Week In January
- Fire & Flower Holdings Corp. (OTC: FFLWF)
- Red White & Bloom Brands Inc. (OTC: RWBYF)
Fire & Flower Holdings Corp.
With more than 85 corporate-owned outlets in Canada, Fire & Flower Holdings Corp. is a leading adult-use cannabis retailer. Hifyre Inc., the company’s wholly-owned technological development subsidiary, is expanding the company’s retail operations model in general. While also providing the company with new high-margin income sources. Through a strategic licensing collaboration with American Acres, Fire & Flower just entered the US cannabis market. In principle, this licensing agreement and acquisition option with American Acres allows Fire & Flower to enter the cannabis markets of California, Arizona, and Nevada. Hifyre, a Fire & Flower affiliate, also signed a strategic collaboration with BDSA, a major U.S. analytics company.
Fire & Flower’s revenue in the third quarter of the fiscal year 2021 was $45.4 million, up 37 % year over year. With $2.1 million in adjusted EBITDA, this is the company’s sixth consecutive quarter of positive adjusted EBITDA. In Fiscal Q3, the company’s Hifyre digital retail platform produced $3.8 million, a 160 % year-over-year growth. The company established a strategic supply deal with Fire and Flower to expand its Humbles collection to Fire and Flower clients across North America, both online and in stores. As American Acres changed its name to Fire Flower US Holdings, Fire Flower officially entered the California market.
The corporation finalized the acquisition of PotGuide and Wikileaf in September. In general, this is indicating that it is continuing to grow its digital approach. The business announced the extension of the Circle K co-location trial program in October.FFLWF stock closed on January 20, 2022, at $3.689 down 7.56% in the last month. The stock has a 52-week price range of $3.57-$12.00 and is down 49.76% in the last six months.
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Red White & Bloom Brands Inc.
Red White & Bloom Brands Inc. intends to be one of the country’s leading multi-state cannabis companies. With retail sites in Michigan, Illinois, Massachusetts, Arizona, Florida, and California, the company is primarily developing in the legal cannabis and hemp industries. RWB recently acquired all of Acreage Holdings Inc.’s (OTC: ACRHF) Florida businesses. RWB will now have eight retail locations around Florida. In addition to a warehouse of 114,000 square feet and a 400-square-foot office. The company completed the purchase of a 45,000-square-foot greenhouse on 4.7 acres in Florida in August. While the company works on its 114,000 square foot factory in Sanderson, Florida, the acquisition provides near-term cultivation capacity.
RWB announced financial results for the third quarter of 2021, reporting revenue of $11.8 million, up % year over year. In the third quarter of 2020, the company’s EBITDA was $5.9 million. This is an increase compared to a loss of $5.8 million in the previous quarter. Additionally, in Q3 of 2021, RWB lost $5.5 million, compared to $9.5 million in the third quarter of 2020. In the third quarter, RWB’s revenues increased 386 % year over year to $36.9 million. It’s also worth mentioning that in the nine months ending September 30, 2021, the company lost $73.8 million.
In January the company announced it has gained complete licensing to begin operations at its 15,000 square foot Michigan cannabis factory. RWBYF stock closed on January 20th at $0.4097 down 25% in the past month. The stock has a 52-week price range of $0.289-$1.65 and is down 55.56% in the past six months.
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