Cannabis Penny Stocks In 2021
Marijuana penny stocks have seen a turbulent year in the market in 2021. After a significant rally at the top of the year, most have seen a substantial loss in market value. Currently, most leading cannabis stocks are trading near their lowest price points so far this year. But many analysts believe there could be another bounce for top marijuana penny stocks sometime this year. One catalyst that could move the top cannabis stocks is US federal reform and cannabis legalization.
With some policy changes already in the Senate, the SAFE Banking Act could be the first to pass in 2021. Even though this is only a banking reform it will allow US cannabis companies to trade on major exchanges. But Canadian companies will have to wait for entry into the market until other policies are introduced on Capitol Hill. In the meantime, Canadian marijuana companies are seeing revenue growth from the Canadian market as higher demand has been created by the derivatives market.
Pot penny stocks are a high-risk high-reward area of the market. This is because of their high volatility and quick changes in market value. In 2021 some of these cannabis stocks have delivered returns for investors in the short term. As these cannabis stocks begin to recover from recent declines it could be time to find the best marijuana penny stocks to buy in May.
Researching And Investing In Cannabis Stocks
Many investors trade this area of the market because they can achieve more leverage in a position without as much capital as higher-priced equities. Earlier in the year, marijuana stocks received national attention when a Canadian penny stock became a favorite among Reddit investors and shot up in value. After this upward momentum marijuana penny stocks are now trading much lower in the market. In general, current market values in the cannabis sector could be an opportunity to find the best cannabis stocks to invest in right now.
For investors finding the best stocks to invest in requires some thorough research into these company’s finances. Also studying how a stock performs in the market can help you establish the best position for your investment. With this in mind, we can look at investment options trading under $1 per share. In general, these marijuana stocks could be options for your 2021 marijuana penny stock watchlist.
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Marijuana Stock To Watch:
Sundial Growers Inc.
Yesterday on May 11th Sundial surprised investors with its first positive earnings report from operations in the company’s history. Specifically, the company saw first quarter 2021 earnings of C$1.7 million compared to a loss of C$32.7 million in Q4 of 2020. Additionally, the company reported a first-quarter positive adjusted EBITDA of C$3.3 million compared to a loss of C$5.6 million the prior quarter. In the quarter Sundial continued to deliver high-quality inhalable and invest in its library of cannabis strains. In February the company managed to harvest its highest potency flower with Top Leaf’s LA Kush Cake producing in excess of 28% THC.
Generally, the company stays committed to producing premium products and sold 3989 kilograms of cannabis in Q1 of 2021. Relatively speaking this is a 45% decrease from sales of 7247 kilograms in 2020. Sundial has also aligned its business into two segments their cannabis operations and the other is the company’s investments. In fact, the company realized C$2.8 million in interest and fee revenue from long-term loans to third parties. Additionally, Sundial has C$12.9 million in realized and unrealized gains from investments in securities.
SNDL stock is up 54.64% year to date closing on May 12th at $0.7029 per share. In February SNDL stock reached a high of $3.96 before it began declining in the market. According to analysts at Tip Ranks SNDL stock has a 12-month average price target of $0.74 per share. In essence, this is relatively flat from current trading levels. For this reason, SNDL could be a top marijuana penny stock to watch for a better entry point.
MediPharm Labs Corp.
At the present time, MediPharm Labs Corp. is a top producer of pharmaceutical quality cannabis oil, concentrates, and derivative products. The company has a wholesale distribution platform of cannabinoid-based products that have established global sales. In its latest earnings report, MediPharms delivered Q4 revenue of $6.1 million an increase of 22% versus $4.9 million in Q3 of 2020. Also important, MediPharms has 30 plus agreements with customers in eight countries establishing growth for future exports.
Specifically, MediPharms has been building a large European pharmaceutical platform and portfolio. In April the company achieved an export milestone shipping cannabis oil from Australia to Germany for the first time. Currently, MediPharms is expected to announce the first quarter and 2021 results on May 17th before the market opens.
MEDIF stock is down 12.64% year to date closing at $0.33 on May 12th. In February MEDIF stock reached a high of $0.7850 and is down 14.17% in the last month. According to analysts Tip Ranks, MEDIF stock has a 12-month average price target of $0.58 per share. This would represent a 74.07% increase from current levels. With this in mind, MEDIF stock could be one of the best Canadian marijuana penny stocks to watch right now.