Mid-March Stocks To Watch: 3 Leading Canadian Marijuana Companies!
In March 2023, which marijuana stocks should you buy? Due to the stock market’s extreme volatility, it may be harder to make long-term investments in 2023. Investors often use short-term trading as a way to make money when things aren’t going well.
As the market picks up steam in the first quarter, this comeback could be good for cannabis companies. As more companies and products come out and the market matures, the Canadian cannabis market is likely to grow. But the industry has problems with the supply chain, with following the rules, and with competition from the black market.
A lot of big mergers and acquisitions have happened recently between the biggest cannabis companies. This trend is likely to keep going as long as the market keeps growing and companies keep trying to get a competitive edge by getting bigger and more efficient.
Some of the biggest cannabis companies have some of the most volatile penny stocks on the market. A penny stock is any share of stock that sells for less than $5. People know that the prices of these cannabis penny stocks change a lot on a daily and monthly basis.
Some of these stocks have been giving double-digit percentage returns recently, which has been good for cannabis investors who are willing to take part in these high-risk, high-reward transactions. Even though there were many setbacks in 2022, federal legislation to reform banking and cannabis could still be passed in 2023.
Many experienced traders are opening positions in some of the best penny marijuana stocks right now, taking advantage of the lower prices. In mid-March, let’s look more closely at three of the best Canadian marijuana penny stocks on your list.
Best Canadian Marijuana Stocks For Watchlist Right Now
- Canopy Growth Corporation ( NASDAQ: CGC )
- Tilray Brands, Inc. ( NASDAQ: TLRY )
- Aurora Cannabis Inc. ( NASDAQ: ACB )
Canopy Growth Corporation
Canopy Growth is well-known all over Canada as one of the biggest companies that make cannabis and products made from it. In general, the US, Canada, and Germany are where most of the company’s hemp and cannabis-based products are sold. Canopy and Southern Glazers Wine & Spirits will sell alcoholic drinks with CBD added to them in the US starting in 2021.
Canopy bought Supreme Cannabis Company, Inc., a high-end cannabis company, to sell a wider range of products in Canada. The company has released Whisl, an innovative CBD vape that can help you keep your mood in check all day. In March, the Martha Stewart CBD division bought more Tropical CBD Wellness Gummies.
Canopy reported net sales of $101 million for the third quarter of fiscal 2023, which is 28% less than the third quarter of fiscal 2022. The loss was mostly caused by the sale of C3 Cannabinoid Compound Company GmbH (“C3”), a drop in our U.S.
CBD sales, increasing competition for adult-use cannabis in Canada, a drop in our U.S. CBD sales, and poor results from This Works and Storz & Bickel. Taking into account the effects of selling C3 and our Canadian retail company, revenues dropped 23% in the third quarter of FY2023 compared to the third quarter of FY2022.
For the fiscal year 2023, the company wants to do better in the high-end industries in Canada. Also, the business wants to sell its products overseas, mostly to Canadian businesses that deal with leisure. After taking out costs related to the US, the company thinks that these steps will lead to a positive Adjusted EBITDA in FY2024.
CGC Stock Performance
CGC stock ended trading on March 14 at $2.07, which is 10.78% less than where it was a month ago. The stock’s 52-week price range is between $2.01 and $8.79, which is 10.39% less than it was at the start of the year. CNN Business analysts say that the median price target for CGC stock over the next 12 months is $2.03 per share. This would be a drop of 1.44% from its last price, which was $2.07.
Tilray, Inc. is a company that sells cannabis-related consumer packaged goods (CPG) in South America, Europe, Australia, and the US. Because it is the market leader in Canada, the business has built a reputation as one of the most successful cannabis businesses in the world. Tilray is getting ready to enter the American market so it can grow its business.
Tilray was the first company in Germany to grow and sell medical marijuana. The company says that foods and drinks with CBD are very popular in the United States and Canada. By working together in 2021, Tilray and Great North Distributors hope to speed up the growth of Canada’s legal marijuana market.
For the second quarter of the fiscal year 2023, Tilray had net sales of $144.1 million, or $157.6 million in constant currency. Also, Tilray had a free cash flow of $25,4 million and an operating cash flow of $29.2 million. Also, for the fifteenth consecutive quarter, the business had a positive Adjusted EBITDA.
Tilray still has the biggest share of both the medical and recreational marijuana markets in Europe. In the year before, the gross profit went up by 22% to $40,1 million. When comparing this quarter to the same quarter last year, the adjusted gross margin stayed the same at 29%.
TLRY Stock Performance
The shares of TLRY ended trading on March 14 at $2.40, which is 19.19% less than where they were a month ago. The stock has a 52-week price range of $2.34–$9.08 and is down 10.78% so far this year. CNN Business experts say that the average price target for TLRY stock over the next 12 months is $3.40 per share. This is a 41.67 percent rise from the last price, which was $2.40.
Aurora Cannabis Inc.
Aurora Cannabis Inc. is a Canadian company that grows medical marijuana and sends it all over the world. To get into the US cannabis market, the company bought Reliva, a company that makes CBD in the country. There are now three more San Rafael ’71 cultivars from the Aurora stock. Israel bought marijuana from the company for $8 million.
After delivering the first batch of cannabis to the French medicinal cannabis pilot program, the company is now working on balancing its books. The business said in February that its net income for the second quarter of Fiscal 2023 was $61.7 million. This is more than the $49.3 million in net sales from the previous quarter and the $60.6 million from the same time last year.
The increase from the previous quarter was caused by $6.6 million from Bevo, which was bought in August 2022, and growth in all parts of the cannabis industry. Also, compared to the previous quarter, net revenue from medicinal cannabis went up by 25% to $39.5 million. The quarter also had a 14% drop from the previous year.
It made up 64% of Aurora’s Q2 2023 consolidated net revenue and 87% of its adjusted gross profit before fair value adjustments. The company’s ability to handle complicated import/export licensing procedures and its growth into new export markets like Australia, Poland, the UK, and the Cayman Islands were the main reasons for the rise in net revenue that started in Q1 2023.
The net loss for the three months that ended on December 31, 2022, was $67.2 million, compared to a loss of $51.9 million for the previous quarter and a loss of $75.1 million for the same period the year before. In March, the company released a new medicinal flower product called Valour—Designed for Veterans, by Veterans.
ACB Stock Performance
ACB stock ended trading on March 14 at $0.7284, down 21.50% in the last month. The stock’s 52-week price range is currently between $0.7070 and $4.56, which is down 21.05% so far this year. CNN Business analysts say that the median price target for ACB stock is $1.12 per share. From its last trading price of $0.7284, this would be a 53.79% increase.
Top Canadian Pot Stocks For March 2023
Due to the high volatility of the market, cannabis stocks could be a good short-term investment. People think that cannabis stocks have a higher risk-to-reward ratio. Before investing, you should usually do research on the company. Press releases and financial reports can be used to figure out which companies are the best in a certain industry.
You could also improve your trading results by using technical indicators and learning more about chart patterns. Investors can get ready for higher volatility in 2023 by keeping an eye on the top marijuana stocks to watch today.