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September 3, 2021
5 minutes to read
This story originally appeared on MarijuanaStocks
Investing in Cannabis Stocks in 2021
Are you looking for different ways to invest in the best marijuana stocks to buy? Over the past six months, the cannabis industry has seen market downturns. Now, after a sharp pullback, it might be time for cannabis stocks to see a rally. One area that has seen significant volatility in 2021 is marijuana penny stocks. For investors unfamiliar with penny stocks, these are stocks that trade below $ 5.
Namely, known to be a high risk investment, penny stocks are preferred by short term traders for their price fluctuations. In general, investors use day trading and swing trading methods to capitalize on price fluctuations. In the first quarter of 2021, major cannabis penny stocks rallied to new highs in February.
After that, they experienced declines that caused them to trade near their 2021 lows. At present, the cannabis industry has not responded to strong earnings or strong press releases. Instead, the only thing that has been a catalyst for cannabis stocks is federal cannabis legalization and reform. As investors saw that reform was not happening earlier in 2021, many began to look for value in other sectors.
Top Penny Stocks in 2021 and the Current Market
This has left many penny pot stocks trading at much lower levels and they could be poised to see a rise in the fourth quarter. Choosing the best stocks to invest in requires due diligence on the part of investors. In particular, researching a company’s financial data and studying the performance of the stock in the market can help you establish the best positions. Because penny stocks trade at lower values, investors can establish large positions with smaller amounts of capital.
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This type of setup allows them to take profits on smaller incremental movements of the stock price in a day trade or swing trade. For investors looking for the best marijuana penny stocks, we can start a list of stocks to watch for September. With several possible catalysts for marijuana stocks right now, investors are keeping Congress on their radar in hopes that cannabis policy changes are introduced this quarter. Let’s look at the top 2 cannabis penny stocks for your list next week.
The best marijuana penny stocks to watch in September
- Glass House Brands Inc. (OTC: GLASF)
- Lowell Farms Inc. (OTC: LOWLF)
Glass House Brands Inc.
Glass House Brands Inc. is one of the fastest growing vertically integrated cannabis and hemp companies in the United States, with a decisive focus on the California market and building leading, sustainable brands to serve consumers in all segments. From its greenhouse cultivation operations to its manufacturing practices, from branding to retail, the company’s efforts are rooted in respect for the people, the environment and the community that co- Founders Kyle Kazan and Graham Farrar instilled it from the start. Through its portfolio of brands, which includes Glass House Farms, Forbidden Flowers and Mama Sue Wellness, Glass House is committed to achieving its vision of excellence: exceptional cannabis products, produced in a sustainable manner, for the good of all. .
In August, Glass House released its second quarter 2021 results with net sales of $ 18.7 million, a 62% year-over-year increase. As a result, the company made gross profits of $ 8.7 million, an increase of 56% from the previous year. Notably, the company had a gross margin of 46% in the second quarter of 2021. Additionally, the company had Adjusted EBITDA of $ 2.2 million, a 100% increase from the second quarter of 2020.
Currently, GLASF’s stock is trading at $ 5.55, up 19.13% on September 3, 2021. The stock has a 52-week price target of $ 4.70 to $ 5.96, down 53.82% since the start of the year. According to Wallet Investor analysts, GLASF stock has an expected one-year target price of $ 4.966 per share. So, as GLASF stock exceeds its current target price, could that stock rise further in September?
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Lowell Farms Inc.
Lowell Farms Inc is a company that is establishing a strong presence in the California cannabis market. Overall, the company has advanced production capabilities, cultivates artisanal cannabis, and has built a portfolio of award-winning licensed cannabis brands for cannabis consumers. Recently, the company entered into a licensing agreement with Ascend Wellness Holdings. As a result, the two companies will bring the Lowell Smokes brand to dispensaries in Massachusetts and Illinois. In August, the company announced that its iconic Lowell Smokes pre-roll packs will be available in Illinois. Now, Lowell Smokes will be available to consumers in Illinois at 8 retail locations across the state.
August 16e the company posted record crop production and record revenue of $ 15.2 million in the second quarter of 2021. Lowell incurred an operating loss of $ 473,000, an improvement over the loss of 0 , $ 8 million in the second quarter of 2020. As a result, the company generated gross margins of 38%. Recently, Lowell Farms announced the commissioning of a one-of-a-kind cannabis. processing plant in Salinas Valley, California. This facility will be capable of handling 250,000 pounds. of cannabis flowers per year.
Currently, LOWLF stock is trading at $ 1.18, down 3.24% on September 3.rd. The stock has a 52-week price range of $ 0.924 to $ 2.149, up 7.02% year-to-date. According to Wallet Investor analysts, LOWLF stock has a forecast one-year price target of $ 1.854 per share. LOWLF stock has fallen over the past five trading days and is down 4.52% during that time. In this case, with some possible momentum in the cannabis business, LOLWF stock could be one of the best marijuana penny stocks for your list in September.
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