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Summary
- Pot stocks are buzzing in North American markets.
- Numinus and Supreme Cannabis stocks are up 34 per cent and 50 per cent year-to-date (YTD), respectively.
- Both the stocks are currently trading under C$2.
With the US and Mexico heading towards marijuana legalization, pot stocks are once again on the verge of a large rally. These stocks have been buzzing across North American markets for over a month now, buoyed by the supportive political ecosystem and innovative research.
Investor’s strategy to buy and hold stocks in the long run has traditionally proven successful. While it doesn’t guarantee a similar success story or profitability, acting on time could be a smart move.
With that in mind, today we look at two rising pot stocks – Supreme Cannabis (TSX:FIRE) and Numinus Wellness Inc. (TSXV:NUMI) – both trading under C$2.
While Supreme Cannabis stock swelled as much as 23.68 per cent on Wednesday (February 3), Numinus was up 11.72 per cent.
Let’s delve into these stocks for a better overview:
Numinus Wellness Inc. (TSXV:NUMI)
Over 26.5 million Numinus scrips exchanged hands on Wednesday. This smallcap firm, with a market cap of C$ 226.5 million, provides treatment for mental illness via psychedelics.
The company is legally harvesting Psilocybe mushrooms to produce the psychedelic drugs.
Currently trading at C$ 1.43 per share, the stocks surged by almost 34 per cent year-to-date (YTD). In the last three months, its shares have yielded nearly 192 per cent returns, with a 50-day average volume of 4.3 million.
The psychedelic stock holds a price-to-book ratio of 71.50. The stocks are currently trading nearly a dollar below its 52-week-high of C$2.45.
This cannabis health firm raised approximately C$ 17.25 million through its bought deal financing offering in the first quarter of FY 2021 (ended on November 30, 2020). The company held a cash balance of C$ 4.9 million at the end of the quarter.
Image Source: Kalkine Group 2021
Supreme Cannabis (TSX:FIRE)
The Toronto-based company produces and retails recreational and medicinal marijuana.
On Wednesday, the stock registered single-day trading volume of 2.6 million.
It is currently trading at its median price point of C$ 0.235, centred between its 52-week-high of C$ 0.51 and 52-week-low of C$ 0.12.
The cannabis stock has zoomed over 73 per cent in the last three months and up 50 per cent YTD.
The company’s revenue soared 24 per cent quarter-over-quarter to approximately C$ 11.9 million in the first quarter of FY21, ended on September 30, 2020. Its current market capitalization of C$ 147.5 million.
The marijuana producer held total cash of C$ 20.4 million, along with working capital of C$ 48.1 million, at the end of its latest quarter.
Supreme is set to release its Q2 FY2021 earnings on Thursday, February 11.
