Recently, cannabis stocks have struggled to attain higher market levels. Delays on federal cannabis reform and lack of regulation have been critical factors for trading slowdowns. Some things may be beginning to change in that arena, however, as it would appear that cannabis stocks are turning around.
As cannabis companies release their earnings reports, it’s apparent that a large sector is gaining momentum. But unfortunately, many of the best marijuana stocks are unreliable due to the ever-evolving factors that influence the new and burgeoning markets. There is caution regarding the consistency of the trading uptick and many cannabis companies’ upward trends have been short-lived.
But on the positive side of things, the growing support for ending federal cannabis prohibition is a good indicator that things could turn around. Cannabis reform has widespread support in Congress. An eventual repeal of prohibition may spark a run in the sector. A selection of cannabis stocks has shown promising trends for 2021 with two companies standing out above the rest.
The first of those two companies is Canadian-based Sundial Growers, which operates under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands. The company produces and distributes inhalable products – flowers, pre-rolls, and vapes – for the Canadian adult-use market. After a Q3 2020 loss of $71.4 million, Sundial’s Q3 2021 results show net earnings of $11.3 million. The company’s net revenue from the cannabis segment was $14.4 million, an increase of 57% over Q2 2021. Sundial also acquired Inner Spirit and an agreement to acquire Alcanna Inc. – Canada’s largest private liquor retailer.
The next company is the award-winning MariMed Inc., which cultivates, produces, and dispenses recreational and medicinal cannabis in the United States and internationally. At the 2021 High Times Cannabis Cup Massachusetts, MariMed’s Crescendo hybrid strain of their Nature’s Heritage premium flower brand won the Bronze Medal. At the Best MetroSouth (MA) Competition, MariMed’s Panacea Wellness dispensary took home Best Cannabis Dispensary. And, at the Reddit Sparkie Awards, MariMed’s handcrafted Betty’s Eddies fruit chews were named Best Edible. All of this demonstrates MariMed’s commitment to craft cultivation and its emphasis on individualized, hands-on care for every plant.
“Cannabis consumers tell us every day with their wallets that they love our brands and our dispensaries, but earning the recognition that comes with an award is, of course, gratifying as well,” said MariMed CEO Bob Fireman.
As the cannabis industry continues to proliferate and evolve, being cautiously optimistic, strategic, and realistic in your investments is certainly a good idea. And if you are going to invest, these two companies may just be some of the smartest choices.
Leave a comment
All comments are moderated before being published.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.