Advances For The Cannabis Industry
The cannabis industry is coming closer to becoming an officially established business sector this week. Today on March 18th the SAFE banking Act will be reintroduced in Congress. Last time the bill was passed in the House but fell short in a Senate under Republican control. With new leadership currently in position, the bill may have a better chance of passing into law. This could further increase the growth of the cannabis industry in the U.S.
At the current moment, U.S. cannabis companies are growing at a substantial rate. Currently, leading marijuana companies are doing this through acquisitions and mergers that have ramped up since 2020. This method provides an already established cannabis presence in key growth markets. With better banking laws for cannabis companies, they may be able to turn to banks for capital and loans. At this time cannabis companies have been forced to deal with a cash-only business model that has held back the industry.
Another possibility that continues to be possible is federal cannabis reform. Provided that the SAFE Banking Act does well in congress cannabis reform and decriminalization could be next up on the agenda. With reform comes the possibility of Canadian cannabis companies entering the U.S. market. Realistically this could take some time to implement but many cannabis companies and investors are preparing for the event.
Could Marijuana Stocks See Gains Next Week
At the present time, marijuana stocks seem to be showing some volatility in the market. In the Canadian sector-top marijuana stocks have seen significant gains in 2021. But after reaching new highs in February most have lost substantial value since then. One question many investors are asking themselves right now about pot stocks, is this the right time to buy marijuana stocks for 2021 gains? After this recent pullback cannabis stocks have been trying to find a bottom for the next move up. After reaching new highs U.S. exchanges have fallen slightly and so have many top cannabis stocks.
Lower stock prices mean a better chance to find marijuana stocks with a potential for gains. Going into the close today some investors are looking for marijuana stocks to invest in for next week in March. For the purpose of researching options in the cannabis sector going into the weekend, we can look deeper into some leading marijuana companies. With this in mind let's look at 2 marijuana stocks that could hold value in March.
- Will Cannabis Banking Soon Become A Reality With The SAFE Banking Act?
- Are These Top Marijuana Stocks Undervalued? 2 Pot Stocks For Your 2021 Watchlist
Marijuana Stocks To Watch:
OrganiGram Holdings Inc.
OrganiGram Holdings Inc. is a licensed producer of cannabis and cannabis-derived products in Canada. At the present time, the company focuses on producing high-quality, indoor-grown cannabis. Catering to both the medicinal and recreational markets OrganiGram has also been developing international business partnerships adding to the company's global footprint. In January the company announced its Q1 fiscal 2021 results. In detail Canadian adult-use recreational gross to $22.5 million up 42%, and net revenue grew to $16.8 million up 30%. Additionally, OrganiGram has begun increasing production to meet increasing consumer demand.
Presently, the company has a number of opportunities it believes can improve growth in 2021. For one OrganiGram is taking full advantage of the Canadian market growth and the derivatives market adding revenue growth. Also, a factor, the number of retail stores in Canada is increasing significantly. To demonstrate, since 2020 the number of stores in Canada's provinces grew by about 47%. This could lead to increased demand for the company's new cannabis products.
OGI stock is up 189.10% year to date with a high of $6.45 in February. Closing trading on March 18th at $3.85 down 7.23% for the day. According to analysts at Tip Ranks OGI stock has a 12-month average price target of $3.50. Relatively speaking this would be down 8.97% from current levels. But with a growing demand for high-quality cannabis products, OGI stock could be a marijuana stock to watch next week in March.
Fire & Flower Holdings Corp.
Fire & Flower Holdings Corp. is an adult-use cannabis retailer that operates retail locations in Canada. Recently the company has made substantial revenue gains that have sparked more investor interest in the company. In fact, during 2020 the company announced a milestone achievement of positive EBITDA of $1.2 million in Q3. Specifically, Fire & Flower reported total revenue of $33.1 million 142% increase from 2019. Also, in February the company reached a record 200,000 members across the Fire & Flower retail network.
In February Fire & Flower made entry into the U.S. cannabis market through its strategic licensing partnership with American Acres. In detail, the partnership and acquisition option includes an agreement to license its Fire and Flower brand, store operating system, and Hifyre technology platform for American Acres dispensaries in California. Essentially this provides Fire & Flower with a strategic entry into the U.S> cannabis market when legally possible.
FFLWF stock is up 42.75% year to date with a high of $1.20 in February. Closing trading on March 18th at $0.9925 the stock lost 5.24% of its value today. According to analysts at Market Beat FFLWF stock has a consensus price target of $1.80 per share. In essence, this would be a 71.9% gain from current levels. For this reason, FFLWF stock is a Canadian marijuana stock to add to your watchlist before next week.
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