Should I buy or sell marijuana stocks in May 2022? 2 ancillary cannabis stocks to watch on the Nasdaq right now
The Cannabis Industry in 2022 During This Stock Market Crash
For many cannabis investors looking up marijuana stocks decline in 2022 has left them with difficult decisions to make. Should I sell my marijuana stocks now and take the loss? As the cannabis sector continues a downward trend that has been in place since it peaked in February 2021, many investors are leaving pot stocks alone. Currently, most best broths saw very low volume and hit new lows in trading last week.
Although some US MSOs saw a rally to close out the week, most of the best buy cannabis stocks are down sharply year-to-date. One of the main reasons for this downward trend is the delay in US federal cannabis reform. Since the presidential election, many investors believed that the United States would end prohibition as soon as a Democratic-led government began. But all attempts by the House of Representatives to pass federal marijuana legalization policies were stopped in the Senate.
But over the weekend, Senate Majority Leader Chuck Schumer spoke at a cannabis rally in New York to reassure Americans that he was working to pass cannabis. its Cannabis Administration and Opportunity Act in August. The senator announced that he has met with Republican lawmakers to continue building support for the legislation that is expected to be formally introduced at that time.
Top Auxiliary Pot Stocks and Current Declines in the Industry
Regardless of federal cannabis reform stalemates, the U.S. cannabis industry is growing rapidly at the state level. In general, major cannabis companies like Trulieve Cannabis Corp. (OTC: TCNNF) and Green Thumb Industries Inc. (OTC: GTBIF) have increased significantly over the past three years. Unfortunately for many retail investors, these OTC stocks are not available on popular new platforms such as Robinhood Markets, Inc. (NASDAQ: HOOD) and WeBull. But there are other areas of the cannabis industry that are available to all ancillary cannabis stock retail investors.
Ancillary cannabis businesses are businesses that support the cannabis industry without touching the plant itself. In 2022, these companies also experienced a significant market decline and could provide an opportunity for new investors. As we enter another week of trading in what could very well be considered another stock market crash, let’s take a look at 2 best ancillary marijuana stocks for your roster right now.
Top ancillary cannabis stocks for your May watchlist
Agrify Corporation is a supplier of precision hardware and software to the indoor farm industry located in the United States. Integrated vertical growing systems and LED grow lights are now available from the company. Agrify’s industry-leading software and technology solutions enable organizations to achieve maximum quality, consistency, and efficiency while spending the least amount of money. Consulting, engineering and construction are part of the company’s offerings. The company recently purchased Precision Extraction Solutions and Cascade Sciences, two well-known producers of cannabis and hemp extraction, post-processing and testing equipment and solutions. Through a cooperation with Olive El Mirage, the company announced its debut in the Arizona cannabis market in October. On February 2, the company purchased Lab Society, a pioneer in distillation and solvent separation solutions for the cannabis extraction industry with annual sales of $10 million.
The company released its fourth quarter and full year 2021 results on March 23. Company revenue increased 395% to $59.9 million in 2021. Additionally, sales increased 481% year-over-year to $25.3 million in the fourth quarter . Additionally, new bookings increased 919% to $377 million. Fourth quarter gross profit was $5.6 million, or 22.3% of revenue. In the fourth quarter, the company lost $13.3 million, or $0.60 per diluted share. The company has a total eligible pipeline with a potential value of $571 million as of March 23. The company will release its first-quarter 2022 results before the market opens on May 11.
AGFY share performance
AGFY stock closed on May 6and at $2.84 down 23.40% in the last month of trading. The stock has a price range of $2.75 to $35.94 and is down 69.13% year-to-date. According to analysts at CNN Business, AGFY stock has a 12-month average price target of $13.50 per share. In this case, it would be an increase of 377.03% from its last trading level of $2.84.
AFC Gamma, Inc.
AFC Gamma, Inc. is a well-known cannabis company with healthy cash flow and operations. The 2020-founded company has focused on real estate security and other collateral, as well as where the supply and demand fundamentals are strong and the legal circumstances are appropriate. AFCG specializes in senior loans, mortgages, construction loans, bridge financing and other unique financing options. The rapid growth of the cannabis industry has been a focus of AFC Gamma’s recent activities. Verano Holdings Corp. (OTC: VRNOF) agreed to a $250 million credit increase and $100 million option in October.
On March 10, AFC Gamma released its fourth quarter and full year 2021 results. In 2021, the company posted net income of $21 million or $1.57 per basic weighted average share. The company earned distributable income of $24.7 million in 2021, or $1.85 per share. Additionally, in 2021, the company secured $341.3 million in new commitments. In January, the company announced gross creations of $127.3 million for the fourth quarter of 2021. AFC Gamma provided Acreage Holdings, Inc. (OTC: ACRHF) with a $150 million credit facility for the to help achieve its development goals. On Jan. 5, the company priced its public offering of 3 million common shares at $20.50 per share. The company will release its first quarter 2022 results on May 9and before opening.
AFCG stock performance
AFCG stock closed at $15.81 on May 6and down 12.80% from the previous month. The stock is down 30.54% year-to-date, with a price range of $15.72 to $25.50. Tip Ranks analysts estimate a 12-month average price of $24.50 per share for AFCG stock. This forecast points to a gain of 54.97% from the stock’s most recent trading price of $15.81.