There are hundreds of penny stocks to buy. But many don’t often get a lot of attention. Needless to say, there are many such stocks that have the potential to generate significant returns.
That is also true when it comes to marijuana penny stocks as well. Over the past year or so, many cannabis companies have gone on to become blue-chip firms with billion-dollar valuations. But there are some marijuana penny stocks which remain under the radar.
In addition, it is important to note that pot companyies share prices often get diluted due to secondary share offerings. Hence, companies with significant valuations can often trade at a price below $3. There are three companies that are particularly compelling. But you decide if these are 3 marijuana penny stocks to buy or sell in 2019.
Marijuana Penny Stock: Aleafia Health (ALEAF) (ALEF)
One of the companies that are particularly promising is Aleafia Health (ALEAF Stock Report) (ALEF Stock Report), which is a significant marijuana producer and has a market cap of $280 million. However, the company’s share trades at only $1.
It provides medical clinic services as well and acquired rivals Emblem, which has given the company access to 40 more clinics. It is a highly strategic acquisition. In addition to that, Aleafia is in the process of significantly raising its production capacity.
Aleafia Health projects output of 138,000 kilos soon and it would make it among the top producers in Canada. The synergy of medical service clinic network and its own rising production capacity makes Aleafia Health a very interesting option.
Marijuana Penny Stock: Auxly Cannabis Group (CBWTF) (XLY)
The other intriguing company Auxly Cannabis Group (CBWTF Stock Report) (XLY Stock Report), a company which is engaged in fronting the capital for marijuana growers and eventually, it takes a cut from those partners. Once it receives its cut from the production, it retails it and makes a profit. However, it did not work out as well for the company and it has now started to get into joint ventures to start marijuana production.
Although the company has a valuation of $350 million, its share trades at $.59. The company expects170,000 kilos in production per year once their joint ventures and cuts from partners are pooled. However, that is not going to happen until late in 2019 or at some point in 2020, which is why CBWTF stock is now depressed. That being said, it could prove to be a clever long term play.
Marijuana Penny Stock: The Supreme Cannabis (SPRWF) (FIRE)
The last one is The Supreme Cannabis Company (SPRWF Stock Report) (FIRE Stock Report), which has decided to take a completely different route in terms of its business strategy. The company is a solidly middle tier company in terms of production capabilities and as of now, it produces 50,000 kilos per year.
The focus: the premium cannabis market. There lies the company’s big opportunity. While the market for standard quality marijuana may be highly crowded. The one for premium marijuana is not yet as crowded.
The company has also decided to expand its production facility to 230,000 square feet and that would yield 33,500 kilos of extra produce per year. A compelling case can be made for all these companies.
Some Closing Thoughts About Marijuana Penny Stocks
Keep in mind that this is the summer. Ever since the beginning of time (ref: marijuana penny stocks), these few months are rough for pot stocks. Typically, consolidation has been seen up until the middle or end of September. For this reason, many people looking for penny stocks to buy will target cannabis companies during the summer. In 2019 the trend appears to have held true to this fact. But in the end, you’ll need to make the choice on which marijuana penny stocks to buy in 2019 if you choose to go that route.