If people want to make a lot of money with penny stocks then they need to be thorough with their research to pick the right stocks. The wrong stock can easily result in an erosion of capital. Therefore, thorough research is of paramount importance.
One of the easier ways to do so: watch the market closely and look for the latest moves made by different penny stocks. One of these moves is “down”. Yep, I said it. Looking for stocks that could be considered “Oversold” has been a rule of thumb for some traders.
And as we’ve discussed in other articles, certain sectors are a good place to start. Lately, marijuana stocks have been the place to be for bottomed out stocks to watch. On that note, here is a closer look at 3 cannabis penny stocks to watch that gained in recent days after a previous selloff.
Marijuana Stock To Watch #1:
United Cannabis Corp
One of the marijuana stocks to watch this week is United Cannabis Corp (CNAB – Stock Report). The reason? Well, some positive penny stock news has helped boost momentum in the market for the pot penny stock.
United Cannabis signed a CBD isolate contract valued between $30-$40 million. The deal has United Cannabis contracted to provide one customer (yes a single customer) with CBD isolate for 100 weeks.
“We expect to launch similar facilities in South Carolina, Tennessee and Illinois by year-end, and have our sights on California, New York, and Florida.”Earnest Blackmon, Chief Executive Officer of United Cannabis
Marijuana Stock To Watch #2:
Cannabis company CannTrust Holdings (TRST – Stock Report) (CTST – Stock report) has been in the eye of a storm last week. This came after it emerged that it had cultivated marijuana without a license at one of its facilities. The marijuana company decided to stop the production of cannabis. The marijuana stock tanked by as much as 50% over the course of last week.
However, the stock jumped by 19% yesterday on a short squeeze. The United States Food and Drug Administration decided to speed up its regulatory process with regards to CBD. That helped act as a catalyst for a whole range of cannabis stocks and not only CannTrust.
Marijuana Stock To Watch #3:
Another cannabis stock, Aleafia Health (ALEF – Stock Report) (ALEAF – Stock Report), gained considerably yesterday. The company managed to secure a license for one of its facilities. The marijuana stock jumped by 3% after it announced receipt of a License Amendment from Health Canada for its facility at Port Perry Outdoor Grow facility. The license went into effect on July 19 and will expire in October next year.