The cannabis industry is in such a bubble that it’s become the “poster child” for the crypto market. One company, Cronos Group Inc (CRON), has risen 200% in value just this year.
The “conservative stocks for 2022” is a cannabis company that has shown great potential in the past few years. The stock is currently beaten down and has 280% upside.
Ascend Wellness Holdings Inc: 6 States, 20 Dispensaries, & Still Growing
Cannabis equities are in a bear market, with the largest industry headwind being blocked federal marijuana legalization in the United States. Despite the fact that 68 percent of Americans favor legalization, this is the case.
Soaring inflation, restricted cash, supply chain concerns, and a coming recession are all obstacles that are keeping marijuana stocks down.
The cannabis sector as a whole is beset by uncertainty. The world’s biggest marijuana exchange-traded fund (NYSE:MJ), ETFMG Alternative Harvest ETF (NYSE:MJ), is down 25% in 2022 and 60% year-over-year. This year, the AdvisorShares Pure US Cannabis ETF (NYSEARCA:MSOS) has lost 40% of its value and is down 65% year over year.
To put it bluntly, finding a pot stock that is currently doing well is challenging. Many cannabis firms in the United States have been reporting strong financial performance; now their stock values must catch up.
Ascend Wellness Holdings Inc. is an inexpensive marijuana company with significant long-term development potential (CNSX:AAWH.U, OTCMKTS:AAWH). The corporation set revenue records in 2021 and pursued an ambitious growth strategy.
Ascend Wellness Holdings Inc plans to optimize its asset base, strengthen its market position, and capitalize on New Jersey’s legal recreational marijuana market, which began on April 21.
Despite this, the stock of AAWH has been declining. Ascend Wellness stock is now trading at $3.16, down by:
- 22% increase in the past month
- Over the previous three months, it has increased by 27%.
- Year-to-date, 52 percent
The stock’s performance is dismal, but it has nothing to do with Ascend Wellness Holdings Inc’s business success.
Despite the challenges, Wall Street analysts are becoming more optimistic about Ascend Wellness stock. The average 12-month price objective for AAWH stock is $8.87, while the high estimate is $12.00, according to analysts. Ascend Wellness stock might rise by 180 percent to 280 percent as a result of this.
StockCharts.com provided the chart.
AAWH Stock Information
Ascend Wellness Holdings Inc is a vertically integrated cannabis firm that owns and runs cutting-edge growing facilities, grows award-winning strains, and creates a carefully chosen product line.
In Illinois, Massachusetts, Michigan, New Jersey, Ohio, and Pennsylvania, it runs 20 dispensaries. (Source: Ascend Wellness Holdings Inc, “Investors Roadshow Presentation April 2022,” last viewed May 4, 2022.)
Ascend Wellness Holdings also runs 213,000 square feet of canopy via its five growing facilities, with plans to increase that to 255,000 square feet by the end of 2022.
Ascend Wellness Holdings Inc will:
- More than doubled its cultivation capacity by adding 100,000 square feet of canopy.
- Three purchases were done after entering the Ohio market.
- Six new clinics were opened, and two more were bought, bringing the total number of dispensaries to 20.
- In Massachusetts and Michigan, a delivery service was launched.
- Exclusive agreements with Lowell Smokes and Edie Parker have been announced.
(Source: Ascend Wellness Holdings Inc, “AWH Announces Fourth Quarter and Full Year 2021 Financial Results,” March 8, 2022.)
The firm has a robust pipeline of assets expected to debut in 2022 and 2023. New dispensaries, larger growing facilities, and new products are all part of this plan.
Ascend Wellness Holdings has opened recreational marijuana dispensaries in New Jersey, introduced “Simply Herb” (a value cannabis brand), and extended its retail and cultivation presence in Illinois thus far in 2022.
Furthermore, Ascend Wellness Holdings Inc is trying to grow into additional densely populated, limited-license recreational or near-recreational marijuana markets, such as Arizona, Connecticut, Maryland, Pennsylvania, and Virginia.
Great 2021 Q4 & Full-Year Results
Ascend Wellness Holdings Inc reported gross sales of $102.0 million for the fourth quarter ended December 31, up 71 percent year over year but down 2.9 percent sequentially. (See also Ibid.)
The company’s fourth-quarter net revenue climbed by 63 percent year over year to $88.5 million (excluding intercompany wholesale goods sales). Ascend Wellness Holdings Inc reported a net loss of $16.5 million, or The company’s fourth-quarter net revenue (which excludes intercompany sales of wholesale products) increased by 63% year-over-year to $88.5 million. Ascend Wellness Holdings Inc reported a fourth-quarter 2021 net loss of $16.5 million, or $0.10 per share, compared to a fourth-quarter 2020 net loss of $7.5 million, or $0.07 per share..10 per share, in the fourth quarter of 2021, compared to a net loss of $7.5 million, or The company’s fourth-quarter net revenue (which excludes intercompany sales of wholesale products) increased by 63% year-over-year to $88.5 million. Ascend Wellness Holdings Inc reported a fourth-quarter 2021 net loss of $16.5 million, or $0.10 per share, compared to a fourth-quarter 2020 net loss of $7.5 million, or $0.07 per share..07 per share, in the fourth quarter of 2020.
The company’s adjusted profits before interest, taxes, depreciation, and amortization (EBITDA) for the fourth quarter of 2021 increased by 82.8 percent year over year to $19.8 million.
The full-year gross revenue of Ascend Wellness Holdings Inc in 2021 climbed by 135.8% year over year to a record $380.4 million. Its net income for the whole year increased by 131.3 percent to $332.4 million. The company’s full-year net loss was $122.7 million, or Ascend Wellness Holdings Inc’s full-year 2021 gross revenue increased by 135.8% year-over-year to a record $380.4 million. Its full-year net income went up by 131.3% to $332.4 million. The company’s full-year net loss came in at $122.7 million, or $0.82 per share, compared to a 2020 net loss of $25.4 million, or $0.27 per share..82 per share, compared to $25.4 million, or Ascend Wellness Holdings Inc’s full-year 2021 gross revenue increased by 135.8% year-over-year to a record $380.4 million. Its full-year net income went up by 131.3% to $332.4 million. The company’s full-year net loss came in at $122.7 million, or $0.82 per share, compared to a 2020 net loss of $25.4 million, or $0.27 per share..27 per share, in 2020.
A $32.0 million non-cash interest charge linked to Ascend Wellness stock’s initial public offering (IPO), which was completed in May 2021, fuelled the large year-over-year rise in full-year net loss.
Interest charges due to one-time prepayments of legacy loans, write-offs of unamortized deferred financing costs, and $41.7 million in tax expenses, compared to $18.7 million in tax expenses the preceding year, aggravated Ascend Wellness Holdings Inc’s net loss.
Ascend Wellness Holdings Inc’s adjusted EBITDA for the full year 2021 increased by 157 percent to $79.4 million.
In 2021, the firm also added $210.0 million in senior loan borrowing to its balance sheet. The firm concluded the year with $155.5 million in cash and cash equivalents.
Ascend Wellness Holdings Inc is a fantastic marijuana firm whose stock has taken a knock owing to larger industry gloom. It’s just a matter of time until Washington does what the American people want and legalizes marijuana on a federal level.
Until then, Ascend Wellness Holdings will keep doing what it does best: growing and selling award-winning goods via its expanding network of dispensaries. As a result, investors should keep a watch on AAWH stock.
The “crlbf seeking alpha” is a marijuana stock that has been beaten-down by the market. The company’s stock price has fallen from $0.12 to $0.02 over the last year, but it still has 280% upside potential.
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