The OTC markets can provide investors with opportunities at extreme value growth in short periods of time. With this volatility comes risk, so make sure to do your due diligence when investing in OTC stocks. We have taken the liberty of getting you started on 4 stocks on the OTC markets we believe could be poised for a big third quarter.
Trulieve Cannabis Corp. (OTCMKTS:TCNNF)
Trulieve Cannabis Corp. accounts for more than 50% of the legal cannabis sales in the state of Florida, making it the state’s leading company in the growing cannabis sector. Currently, the company has 88 stores in Florida, and 97 nationwide, growing strategically in new markets.
The company is in the process of acquiring Harvest Health & Recreation Inc. (OTCMKTS:HRSVF). When complete the company will have a consensus 2021 revenue of over $1.2 billion.
This month the company announced the launch of a brand portfolio that includes four brand designs tailored to meet the needs of new cannabis consumers and connoisseurs.
On September 13th Trulieve debuted a new line of concentrates using hydrocarbon extracts. These hydrocarbon extracts offer patients “high-quality, full-spectrum concentrates as a uniquely powerful, aromatic, and high purity medicine.”
In July Trulieve announced it received a production license approval in Georgia giving the company further presence in the Southeast cannabis market. They are also expanding their footprint in the Northeast, opened the company’s first dispensary in the state of Massachusetts.
In August Trulieve reported its second-quarter 2021 financial results which were the company’s 14th consecutive quarter of profitability. Specifically, the company saw revenues of $215.1 million and generated a net income of $40.9 million.
Ayr Wellness Inc. (OTCMKTS:AYRWF)
Ayr Wellness Inc. one of the largest cannabis companies in the Florida market, has 38 operating dispensaries in Florida and a total of 52 stores nationwide. The company recently entered the Illinois market with the acquisition of Herbal Remedies Dispensaries, LLC. AYRWF has also received a provisional license to sell adult-use cannabis at greater Boston dispensaries in Massachusetts.
In another growth-related move, Ayr has agreed to acquire Tahoe Hydro an award-winning cultivator and high-quality cannabis flower produce in Nevada.
In a move toward diversification, the company signed an agreement to acquire the owner of Levia cannabis-infused hard seltzers.
Last month, AYRWF reported its second-quarter 2021 results with revenue of $91.3 million up 222% year over year, an adjusted EBITDA was $27.4 million on a US GAAP basis up 225% year over year. The company raised its 2022 revenue target to $800 million with a $300 million AEBITDA. In addition, Ayr provided a 3Q 2021 guidance of $100 million in revenue.
Columbia Care Inc. (OTCMKTS:CCHWF)
Columbia Care Inc. is a New York-based cannabis company that could benefit from NYS legalization. In 2021, the company acquired a 34-acre Long Island cultivation site making the company one of the largest cultivators on the east coast. However, they are not limited to NYS markets, Columbia Care operates in 18 US markets and operates 130 facilities including 99 dispensaries and 31 cultivation and manufacturing facilities. The company just launched West Virginia market operations.
Investors should be pleased with CCHWF’s second-quarter 2021 results after a record quarterly revenue of $109.7 million up 232% year over year. This led to record quarterly adjusted gross profits of $47.7 million an increase of 300% year over year, a record adjusted EBITDA of $16.4 million up $21.1 million year over year.
The company also completed the acquisition of Green Leaf Medical and appointed Phillip Goldberg of Green Leaf Medical To its Board of Directors.
Allied Energy Corporation (OTCMKTS:AGYP)
Texas-based oil and gas exploration company, Allied Energy Corporation (OTCMKTS:AGYP) has had an eventful past few months.
The company released a major study in July announcing the Proved, Probable and Possible resources in the company’s two North Texas leases, the Green Lease and Annie Gilmer Leases respectively.
If you are new to oil & gas investments or are unsure what that means:
- Proven reserves sit at the top of the scale, at a 90-percent or above likelihood of commercial extraction.
- Probable reserves are those with the likelihood of recovery for between possible and proved reserves, or over 50-percent but under 90-percent
- Probable reserves are those with the likelihood of recovery for between possible and proved reserves, or over 50-percent but under 90-percent.
Now that you know what they mean let’s look at what AGYP has reported:
The Green Lease:
Proved: $2,026,500
Probable: $5,781,300
Possible: $12,755,300
TOTAL: $20,563,100
The Annie Gilmer Lease.
Proved: $6,704,900
Probable: $1,902,200
Possible: $3,587,700
TOTAL: $12,194,800
Let’s add these numbers up for some perspective on the total potential of these leases:
Total Proved: $8,731,400
Total Probable: $7,683,500
Total Possible: $16,343,000
GRAND TOTAL: $32,757,900
A very impressive number in its own right, however, it becomes more impressive when you consider these prices are at a conservative estimate of oil barrels priced at $46.26.
Oil is currently around $70 per barrel, so considering the two leases’ potential at $70 per barrel the new grand total would be $49,568,804 that’s 51% higher than AGYP’s ultra-conservative estimate.
Consider that in June, Bank of America strategist Francisco Blanch stated “We think in the next three years we could see $100 barrels again, and we stand by that.”
The company is now closer to achieving these numbers, last week they announced oil production has commenced at the Green Lease. They are also close on the Annie Gilmer lease. Things could heat up for the stock this fall.
