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The Cannabis Market And Its Decline In 2021
As investors continue to keep their eye on small caps and earnings results top marijuana stocks have continued to experience a downtrend. After nine months of market declines, many of the best cannabis stocks to buy are trading near the same levels seen before November 2020. Last year the cannabis sector began a rally in November that was fueled by the possibility of federal marijuana legalization.
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Now after almost a year of waiting for the Senate to make an official move the cannabis sector has been extremely impacted. But these lower trading levels could be a good opportunity for investors looking to gain exposure to the cannabis market. One area that has declined significantly in 2021 is marijuana penny stocks. Penny stocks trade under the $5 stock price and are known to have substantial volatility. These are higher-risk trades that many investors prefer to trade using short-term methods.
In general, these traders take advantage of the price swings and lower stock prices to produce profits. As the cannabis sector continues to see declines more investors are looking for pot stocks that could have upside in November and going into 2021. Making a watchlist of the best marijuana stocks can help you keep track of possible investment ideas for the future.
Finding The Best Investments In The Cannabis Sector
Before making any investment it’s always important for you to research the companies that could be investment options. Following how a stock performs in the market and researching a company’s earnings results and press releases can help you find the best positions. As investors continue to wait for a catalyst for the cannabis sector many analysts are forecasting upside from current market value. With this in mind, let’s look at 2 top cannabis penny stocks for your list in November.
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Top Cannabis Penny Stocks To Watch For Next Week
- Goodness Growth Holdings, Inc. (OTC: GDNSF)
- TILT Holdings Inc. (OTC: TLLTF)
Goodness Growth Holdings, Inc.
First up is Goodness Growth Holdings, Inc. a company focusing on bringing technology, science, and engineering to the cannabis market. At the present time, Goodness Growth’s subsidiary Resurgent Biosciences plans on expanding into clinical research efforts in psychedelic medicine. Currently, the company has 17 retail dispensaries across the US. In general, the company produced gross profit margins of $5.6 million up 42.6% year over year. Goodness Growth closed on the purchase of 4 cannabis licenses in Nevada before changing its name. These licenses will allow Goodness to cultivate and produce cannabis products to both the medical and recreational markets in Nevada.
In other events, Goodness announced the agreement to acquire Charm City Medicus Dispensary in Maryland. As a result, this transaction will improve the companies scale in the Maryland medical cannabis market and expand its retail presence in the state. On October 29th the company announced its subsidiary Vireo Health will launch flower cannabis products in New York. Goodness reported its Q2 2021 financials with GAAP revenue of $14.2 million an increase of 16% year over year. As a result, the company set a record GAAP gross profit margin of 49% reflecting improving efficiency in their operations. In September the company launched its first IRB-approved research study on Entheogens and psychedelic experiences.
GDNSF stock is trading at $1.50 on October 29th down 9.09% in the last month. Currently, the stock has a 52-week price range of $0.937-$3.84 and is up 1.39% year to date. According to analysts at Market Beat GDNSF stock has a consensus price target of $4.00 per share. In this case, this would represent an upside of 166.7% from its current trading price.
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TILT Holdings Inc.
Next Up, with a focus on the global markets, TILT Holdings Inc. provides business solutions to cannabis companies building their brand on a global platform. In general, the company provides its services to countries like the US, Canada, Israel, Mexico, South America, and the European Union. To highlight, TILT has a large portfolio of companies that provide technology, hardware, cultivation, and production for other top cannabis companies. Overall, the company supplies the U.S. and European medical cannabis markets with medical-grade inhalation devices.
In August TILT reported its second-quarter 2021 results with record revenue of $48.5 million up 33% year over year. Additionally, the company has a record adjusted EBITDA of $6.5 million in Q2. To highlight, the company reiterated 2021 guidance of revenue between $205-$210 million. In October TILT entered into a definitive agreement to sell all assets from its subsidiary Sante Veritas Therapeutics. The company is expected to release its third-quarter 2021 results on November 15th after the market close.
TLLTF stock is trading at $0.3115 on October 29th down 20.91% in the past month. The stock has a 52-week price range of $0.304-$0.75 and is up 7.72% year to date. According to analysts at Market Beat TLLTF stock has a consensus price forecast of $1.25 per share. In essence, this would be an upside of 300.01% from current trading levels. Because of the potential for triple-digit percentage gains these 2 marijuana penny stocks could be picks for your watchlist in November 2021.
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