These 3 Marijuana Penny Stocks Are Heating Up Today
The cannabis industry and corresponding penny stocks have seen a record year and a half. When the pandemic began, people were stuck at home, and with this, the demand for cannabis shot up dramatically. This demand increase continued for quite some time, and to date, remains at record highs. While in between there have been periods of ups and downs, this is common in an industry that is both new, and highly volatile.
Why Are Weed Stocks Up Today?
But regardless, there are plenty of marijuana penny stocks that investors could watch right now.
Here’s why weed stocks are up today:
On Wednesday, July 28th, shares of Canadian marijuana producer Tilray Inc. (NASDAQ: TLRY) shot up by almost 22% at midday. Other cannabis stocks such as Canopy Growth Corp. (NASDAQ: CGC) and Aurora Cannabis Inc. (NASDAQ: ACB), quickly followed suit.
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The main reason for this is Tilray’s earnings report which was posted yesterday, beating expectations by a sizable amount. This was also the first earnings report that the company produced since merging with another major Canadian cannabis producer, Aphria. In the report, Tilray posted GAAP earnings of $0.18 per share on a 25% revenue gain to $142 million. This is a big deal for the company, and albeit, something that many investors expected after the past year or so. Considering all of this, let’s take a look at three marijuana penny stocks that could benefit.
3 Marijuana Penny Stocks to Watch Right Now
- OrganiGram Holdings Inc. (NASDAQ: OGI)
- Sundial Growers Inc. (NASDAQ: SNDL)
- Zynerba Pharmaceuticals Inc. (NASDAQ: ZYNE)
OrganiGram Holdings Inc. (NASDAQ: OGI)
Up by around 7% at midday, OrganiGram is another major player in the Canadian cannabis industry. With any marijuana stock, we often see moves when legislative changes occur. This was the case earlier this week after Sen. Cory Booker stated that he would be meeting with President Biden to discuss the Cannabis Administration and Opportunity Act. This would effectively reschedule marijuana from a federal level, which is something the cannabis industry has been waiting on for years now.
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But, to get a more individual look at OGI stock, we can view its recent Q3 2021 revenue report. In the report posted in Mid-June, the company posted a loss of CA$4 million. This is substantially less than the loss of CA$89.9 million it posted in the same quarter of 2020. In addition, it managed to grow its revenue by around CA$2 million, which is an encouraging sign.
There were several other exciting announcements in the report, including the repayment of a credit facility which should save it roughly $2.7 million in interest per year. So, all of these signs point to growth for OrganiGram holdings right now. And while its increase in value today may be piggybacking off of TLRY stock, there’s no doubting the potential of OGI. Considering this, will it be on your watchlist next month?
Sundial Growers Inc. (NASDAQ: SNDL)
Another decent gainer today so far is SNDL stock, pushing up by almost 10% at midday. Again, it’s likely that the gain for SNDL stock today is a correlative one resulting from the TLRY stock spike, however, Sundial still has quite a lot to offer. Sundial began as a small Canadian cannabis grower, however, in the past few years, it has expanded greatly. Only recently, it expanded its business into a relatively new model, yet to be seen by many other cannabis companies.
This is its SunStream Bancorp Investment Fund, which buys debt and equity to bring a heightened return to investors. So far, the company has invested around CA$538 million into the venture, and in the first quarter of this year, it brought in roughly $15.7 million. This outweighed its cannabis revenue during that time of $11.7 million. While many marijuana stocks have remained unprofitable due to the high costs associated, this is a unique strategy that could result in the opposite for SNDL if it plays all its cards right.
And although it is an odd route to go considering its primary business model, many investors are looking for diversified cannabis plays. YTD, shares of SNDL stock are up by around 56%, indicating sold bullish sentiment. And given that shares of SNDL sit around $0.85 as of July 28th, it is still a relatively cheap marijuana stock. So, with this in mind, will Sundial Growers be on your list of penny stocks to watch?
Zynerba Pharmaceuticals Inc. (NASDAQ: ZYNE)
Moving away from the more pure-play marijuana stocks, we come across Zynerba Pharmaceuticals. Zynerba is a biotech penny stock that produces cannabinoid based therapies for patients. This includes transdermal products used in the treatment of rare neuropsychiatric disorders. The company states that it is heavily focused on treating ailments such as autism, Fragile X syndrome, and certain forms of epilepsy.
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Recently, the company presented at the Ladenburg Thalmann Virtual Healthcare Conference. At this conference, the CEO discussed the recent positive data from the open-label Phase 2 trial of its product Zygel. Zygel is used in treating epileptic encephalopathies and autism. A recent study showed that Zygel was able to promote sleep and maintain sleep alongside being well-tolerated by patients. For some context, Zygel is a transdermal gel that is applied directly to the skin.
“The previously disclosed data from these three studied provide evidence of the potential for Zygel to have a clinically meaningful impact on a variety of endpoints associated with ASD and related disorders.
Should these findings be confirmed in additional trials, we believe Zygel has the potential of being a new and differentiated therapeutic option for these patient communities.”
CMO of Zynerba, Joseph M. Palumbo M.D.
Considering this exciting news, ZYNE stock could be worth adding to your watchlist.
Marijuana Penny Stocks Continue to Show Potential
While today’s gain is highly speculative, no one is doubting the vast potential that marijuana stocks could have in the future.
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And with the pandemic beginning to increase Covid numbers once again, the demand for cannabis could rise as it did earlier in the year. Considering all the positivity around the cannabis industry right now, which marijuana penny stocks are on your watchlist in 2021?
