3 Marijuana Stocks To Watch In 2022 For Better Trading
When it comes to investing in marijuana stocks there are several things to consider. First, you must understand how the sector performs. Meaning that most marijuana stocks trade with a certain level of volatility. What this means is that with our warning. For example, just as quickly as a stock can rise is fast as it can fall. Which was shown in an aggressive manner for much of 2021. Another thing you will want to do is learn how to trade and invest even if it’s a basic understanding.
By knowing how to trade will give you a better starting point when it comes time to do so. Now the next step should be to build a cannabis stock watchlist. By building a small list of companies to watch you can then start your due diligence. Once you have your list you should start to research and learn all you can about each marijuana stock. You want to learn about what the company is doing how do their financials look and past trading history. Using this as a starting point to learn about each possible cannabis stock to buy will help mitigate risk. As well you should also learn about the different types of cannabis companies. For instance, you have pure-play marijuana stock.
Pure play cannabis stocks are companies that work directly with the cannabis plant. Also, you have Multi state operators or better known as MSO marijuana stocks. The advantage of MSO is they most times have they have the ability to work in other legal markets. And the next would be ancillary marijuana stocks. Ancillary cannabis companies most times offer a product or service which is not only meant for one type of industry. Ancillary and MSO also present the least amount of worry inside of a sector that has many risks. The reason is that there is more than one outlet for these types of businesses to remain profitable.
Marijuana Stocks And Investing Into The Future
Now that we have gone over the ways to invest in marijuana stocks 2022 comes with its fair share of worry and optimism. This is mainly due to how badly the sector performed in 2021. As well with all the progress that took place outside of the market, some see this new year with hope. The cannabis industry as a whole is growing and flourishing day by day. It’s inevitable that one day soon the end of cannabis prohibition will arrive. Yet at this current time, more states are looking to go legal in 2022. So with just the basics on how to invest and trade top marijuana stocks, 2022 could be a better time for some. The cannabis companies below are several marijuana stocks that have captured investors’ attention.
Marijuana Stocks To Watch As New Year Of Trading Is Underway
- Fire & Flower Holdings Corp. (OTC:FFLWF)
- 4Front Ventures Corp. (OTC:FFNTF)
- Planet 13 Holdings Inc. (OTC:PLNHF)
Fire & Flower Holdings Corp.
Fire & Flower Holdings Corp. through its subsidiary, Fire & Flower Inc., operates as an independent retailer. A company that offers cannabis products and accessories. This is done through its retail locations located in the provinces of Alberta, Saskatchewan, Manitoba, Ontario, and Yukon. It also engages in the wholesale of regulated cannabis products and accessories in Saskatchewan. Plus it operates Hifyre digital retail and analytics of regulated cannabis e-commerce platform.
In the company’s most recent earnings Fire & Flower produced some solid results. The company saw its quarterly revenue increase 37% year over year to $45.4 million. As well the company also saw its sixth consecutive quarter of positive Adjusted EBITDA of $2.1 million. This is compared to positive Adjusted EBITDA of $2.0 million for the third quarter of 2020. From this progress, others have taken more of an interest. Particularly with possibly investing in this top marijuana stock. So as 2022 is just starting there is more to be seen.
4Front Ventures Corp.
4Front Ventures Corp. owns and manages licensed cannabis facilities in state-licensed markets in the United States. The company operates in two segments, THC Cannabis and CBD Wellness. It produces and sells cannabis and CBD. Back in 2021 like many other cannabis stocks FFNTF stock did not see too much upward trading. Yet outside of the market, the company did a lot of groundwork in preparation for 2022. Some of which was initiated through acquisitions of different company’s.
In addition to making updates to its leadership team. Back in mid-November, the company was able to show strong earnings. During Q3 2021 the company saw its Adjusted EBITDA increased 103% to $7.5 million. This figure is compared to $3.7 million in Q3 2020, representing an Adjusted EBITDA margin of 23%. With this progress and continued success, 2022 could shape up to be a good year for this marijuana stock.
Planet 13 Holdings Inc.
Planet 13 Holdings Inc. an integrated cannabis company, cultivates, produces, distributes cannabis. And it markets cannabis and cannabis-infused products for medical and retail cannabis markets in Nevada, the United States. It also operates dispensaries. The company also back in 2021 was able to show solid earnings. In Q3 2021 the company revenue hit $33.0 million.
This is a 45 percent jump in comparison to Q3 of 2020. As well the company throughout this past year has been able to further expand. These expansions have happened by opening new stores and adding new products to sell. As the company continues to show more success PLNHF stock may further its upward trading. With more progress, the company is under the umbrella of top marijuana stocks to watch.