VFF - Top Marijuana Stocks For Cannabis Investors 2024

2024-05-12 08:42:23 ET

How Will The Marijuana Stocks Trade After Being Rescheduled

Marijuana stock investors are keeping focused on the future of the industry. With the potential shift in the scheduling of cannabis, people want to be prepared. There is a bit of uncertainty about what will happen when cannabis gets rescheduled. Many worry that it will negatively impact legal operators and various niches in the industry. However, when news first surfaced there was a bit of an uproar and a rise in momentum for marijuana stocks.

But since this news has surfaced there has been heavy speculation of what will occur and how to be ready. Volatility is something that is rarely short when it comes to pot stocks. Those in favor of legal cannabis need to fight for reclassification versus rescheduling. Although cannabis is making its way to a less severe bracket in the eyes of the federal government there is more to be done. The fear is that with rescheduling marijuana it will give leverage to big pharma.

Now what should happen is a reclassification for cannabis. With reclassifying it would be more in favor of legal operators. Particularly legend growers and small-batch farmers. The cannabis industry is growing and constantly facing new battles. Yet it seems that small victories bring the culture closer to the end goal of irradicating cannabis prohibition. For those looking to invest the companies below are marijuana stocks to watch if reform does pass.

Marijuana Stocks To Invest In Today’s Market

1. Planet 13 Holdings Inc. ( OTC:PLNH )
2. GrowGeneration Corp. ( NASDAQ:GRWG )
3. Village Farms International, Inc. ( NASDAQ:VFF )

Planet 13 Holdings Inc.

Planet 13 Holdings Inc., together with its subsidiaries, cultivates and provides cannabis and cannabis-infused products for medical and retail cannabis markets in the United States. In recent news, the company has reported its Q1 2024 earnings.

Financial Highlights – Q1 – 2024

• Revenue was $22.9 million as compared to $24.9 million, a decrease of 8.2%. Lower sales at the SuperStore and in wholesale offset growth from the Planet 13 Neighborhood store network.
• Gross profit was $10.5 million or 45.8% as compared to $10.9 million or 43.7%.
• The improvement in gross margin was driven by a decrease in product discounting at retail.
• Total expenses were $14.1 million as compared to $15.3 million, a decrease of 7.6%.
• Net loss of $5.9 million as compared to a net loss of $8.5 million.
• Adjusted EBITDA loss of $0.0 million as compared to Adjusted EBITDA loss of $1.3 million. Adjusted EBITDA margin was higher due to better gross margin performance and strong cost control.

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GrowGeneration Corp.

GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. Back on May 9th the company also reported its first quarter 2024 earnings.

Q1 2024 Earnings Highlights And Key Mentions

• Net sales decreased 3% quarter-over-quarter to $47.9 million
• Comparable store sales including e-commerce decreased 1.0% to the prior year, but was positive for retail stores
• Gross profit margin of 25.8%, a decrease of 280 basis points from the prior year
• Net loss of $8.8 million, compared to a net loss of $6.1 million in the prior year
• Adjusted EBITDA(1) loss of $2.9 million, a decline of $1.1 million to first quarter 2023
• Cash, cash equivalents, and marketable securities of $61.3 million and no debt
• Reiterating full-year 2024 guidance for revenue to be $205 million to $215
• million and Adjusted EBITDA(1) to be a loss of $2 million to a profit of $3 million

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Village Farms International, Inc.

Village Farms International, Inc., together with its subsidiaries, produces, markets, and sells greenhouse-grown tomatoes, bell peppers, and cucumbers in North America.
It operates through four segments: Produce, Cannabis-Canada, Cannabis-U.S., and Energy.  In recent news, the company reported its Q1 2024 results.

2024 First Quarter Highlights

• Total Sales Grow 21%, Net Loss Per Share Improves to ($0.03), Adjusted EBITDA
• Increases Six-Fold to $3.6 Million
• Canadian Cannabis Retail Net Sales Grow 28% Organically Year-Over-Year, with
• Positive Adjusted EBITDA and Positive Free Cash Flow
• Canadian Cannabis Expands Number 2 National Market Share Position1
• Fresh Produce Delivers Profitability on Higher Year-Over-Year Sales and
  Improved EBITDA Margin