IMCC - Top Marijuana Stocks Under $2 for This Week's Trading

2023-10-17 16:00:54 ET

Inexpensive Marijuana Investments to Watch This Week

With exponential growth prospects, the cannabis sector and top marijuana stocks are booming globally. Cannabis is growing into a huge economic force as more nations legalize it for medical and recreational use, and investors are eager to tap into this emerging market. Trading ancillary and international cannabis stocks, now valued under $2, is one investment strategy that investors find particularly alluring. In general, this offers traders a low-cost starting point and takes advantage of the cannabis industry’s unquestionable potential. Industry projections predict that the global cannabis market will expand at a compound annual growth rate of 18.1% to reach $73.6 billion by 2027. In addition, this growth is primarily due to the increasing acceptance of cannabis for medicinal use, the decriminalization of recreational consumption, and the ongoing market expansion into new territories.

Overall, technical analysis and sound risk management are essential skills for short-term traders trying to profit from the momentum in the cannabis business. Due to their accessibility, low-priced cannabis stocks may seem alluring, but it’s essential to approach them carefully and with a clear strategy. When to start or quit a trade can be determined using technical analysis to analyze past price patterns, trendlines, and essential support and resistance levels. Risk management is also necessary to reduce possible losses and protect investments. To distribute risk, traders should consider placing stop-loss orders and diversifying their holdings. Also, investors may be able to access significant opportunities in a dynamic and quickly rising business by utilizing these tactics in the context of the burgeoning cannabis industry.

[Read More] Cannabis Investing 2023 Top Marijuana Stocks For Your Portfolio

Cannabis Stocks Under $2: Weekly Watchlist

• High Tide Inc. ( NASDAQ: HITI )
• Greenlane Holdings, Inc. ( NASDAQ: GNLN )
• IM Cannabis Corp. ( NASDAQ: IMCC )

High Tide Inc.

High Tide Inc. is a cannabis dispensary that manufactures and sells goods produced from cannabis. The company’s portfolio comprises a reputable international manufacturer and distributor of cutting-edge smoking accessories and a well-known Canadian cannabis brand. In general, the company’s major objective was controlling the online accessory supply market. 127 stores across Canada currently carry the High Tide brand. The UK is Blessed CBD’s primary market, and High Tide acquired the business in October 2021. With the opening of its 66th retail cannabis location, the company grew its market share, outperformed all rivals, and took the top spot in Alberta. This was the largest acquisition made by the business to date, according to High Tide.

Third Fiscal Quarter 2023 – Financial Highlights

The company reported impressive financial results in the third fiscal quarter of 2023, indicating strong growth and improved financial health. Revenue for the quarter reached $124.4 million, representing a significant year-over-year increase of 30% and a sequential increase of 5%. The growth was driven by the continued momentum of the company’s discount club model and cost control measures, resulting in substantial increases in same-store sales. This revenue growth was accompanied by a notable increase in gross profit, which reached $34.6 million, marking a year-over-year increase of 34% and a sequential increase of 10%. The company maintained a consistent gross profit margin of 28%, and its brick-and-mortar stores demonstrated improved gross margins, which are noteworthy accomplishments.

The company’s financial performance was further underscored by robust adjusted EBITDA, which surged to $10.2 million in the third fiscal quarter of 2023, representing a remarkable 140% year-over-year increase and a 55% sequential increase. The company’s prudent cost-saving measures led to lower general and administrative expenses as a percentage of revenue and improved percentages in salaries, wages, and benefits. Additionally, the company’s innovative approach, including the rollout of its cannabis paid loyalty program and the growth of its Cabanalytics business data platform, contributed to its overall growth. Although there was a reported net loss in the quarter, the company significantly improved its cash position, ending with $25.7 million, a 40% year-over-year increase, without external funding, demonstrating a sound financial position and substantial potential for future growth.

HITI Stock Performance

The shares of HITI finished at $1.51 on October 16 ^th , down 10.65% in the last month of trading. In this case, the stock is trading in a 52-week price range of $1.0340 to $2.30, down 1.95% year to date.

[Read More] Top Marijuana Stocks For Investing 3rd Week of October

Greenlane Holdings, Inc.

Greenlane Holdings, Inc. is a cannabis accessory company in the United States. Premium vaporizers, child-safe packaging, and cannabis accessories are well-liked products in the US and other nations. Products from Greenlane are currently available in more than 11,000 locations worldwide. In 2021, the merger between Greenlane and KushCo Holdings, Inc. was complete. The business acquired DaVinci, a renowned creator and producer of expensive portable vaporizers.

Q2 2023 Highlights

• Revenue for Q2 2023 decreased to $19.6 million, compared to $24.0 million in Q1 2023.
• Operating expenses in Q2 2023 were reduced $0.9 million or 6.2% compared with Q1 2023.
• Net loss attributed to Greenlane Holdings, Inc. for Q2 2023 was $10.5 million, compared to $10.2 million in Q1 2023. Basic and diluted net loss of $6.56 per share compared to a loss of $6.40 per share for the prior quarter.
• Adjusted EBITDA loss for Q2 2023 was $5.8 million compared to a loss of $6.8 million for Q1 2023.
• The Company has launched 21 new products this year: The ORAFLEX line with the Rig, a full line of Groove products, including the new line of Groove glass, the Groove Micro Rigs, and a Limited-Edition Spoon Pipe. From DaVinci, we brought a new colorway to market in the MIQRO-C line along with the new ARTIQ. This newest DaVinci premium portable vaporizer is quickly garnering critical acclaim.

GNLN Stock Performance

GNLN stock closed at $0.6130 on October 16 ^th , down 30.26% in the past month of trading. In this case, the stock has a 52-week price range of $0.56-19.10 and is down 78.68% year to date.

[Read More] Mid-October 2023 Watchlist: Leading Ancillary Cannabis Stocks

IM Cannabis Corp.

With operations in Israel, Germany, and Canada, IMC pioneered medical and adult-use recreational cannabis businesses. The Israeli medicinal cannabis industry, according to the business, has benefited from the IMC brand as it has reached a crucial turning point. IMC’s selection of medical marijuana products is growing. In addition,  IMC does business throughout Europe as Adjupharm, a German-based distributor of medicinal cannabis with EU-GMP certification. The company has exaggerated its plans to build a cutting-edge logistics hub in Germany. By repackaging cannabis in big quantities, Adjupharm will be able to optimize its supply chain with the aid of this facility in the future.

Q2 2023 Financial Highlights

• Revenues stayed stable, with a 4% year-over-year increase to $13.2 million.
• 40% increase in Gross Margin
• 83% decrease in Non-IFRS Adjusted EBITDA Loss
• 33% decrease in operating expenses, a 20% decrease compared to Q1, 2023

IMCC Stock Performance

IMCC stock closed at $0.59 on October 16 ^th , down 9.23% in the past month of trading. In this case, the stock has a 52-week price range of $0.511-$4.80 and is down 39.47% year to date.

Inexpensive Marijuana Investments to Watch This Week

Investors continue to find the cannabis sector enticing, and it’s difficult to resist the temptation of cheap marijuana stocks that trade for under $2. Additionally, as we’ve mentioned, the legalization of cannabis, shifting public perceptions, and increasing markets are all expected to contribute to the market’s rapid expansion in future years. However, short-term traders must approach these companies cautiously to negotiate the market’s natural volatility, using technical analysis and prudent risk management techniques. Investors can take advantage of the potential for significant profits while managing the inherent risks associated with cheap cannabis stocks by remaining knowledgeable, using a disciplined strategy, and diversifying their portfolios.

Monitoring budget-friendly cannabis stocks this week may offer rewarding opportunities in a dynamic industry filled with vast potential. In addition, the cannabis sector’s evolution, from medical use to expanding recreational markets, entices cautious traders to explore growth prospects.