Pot stocks saw highly impressive gains months ago. Despite some of the top stocks giving up considerable gains, pot stock earnings have helped boost the sector once again.
Based on this, it could be time to once again pay close attention to the pot stock sector. You may also want to have a look at the possibility of investing in penny stocks in the marijuana space. Due to the potential growth in the industry; it could prove to be a good strategy based on volatile swings.
That being said, you still need to heed the basics of penny stocks. This includes doing the proper research before you put together your list of marijuana stocks. Here is a look at three pot penny stocks to watch as investors refocus on the cannabis industry.
Pot Stocks to Watch #1
HEXO
The first marijuana stock to watch is HEXO Corp (HEXO Marijuana Stock Report). The company made significant progress over the course of the year so far. But recently the stock has not moved much. Currently, the pot stock has declined by as much as 40% from its 2019 high so far.
That being said, there are still some immediate issues that the company needs to tackle. Hexo focuses on the cannabis-infused candy category in Quebec, having cornered as much as 30% of the market. However, the province might ban the product, which could have an adverse impact on Hexo’s growth.
On the other hand, it has also become a target of short-sellers who allege that Hexo violated regulations by advertising its products on social media. In the end, it will be up to the market to decide whether or not this is a good pot stock to buy.
Pot Stocks to Watch #2:
22nd Century Group
22nd Century Group Inc. (XXII Pot Stock Report)’s stock has been in the middle of a highly impressive run for most of the month. Over the course of the past week, the penny stock gained as much as 25% and jumped further by 11.19% on Tuesday. This came after the company announced the appointment of its new CEO.
22nd Century Group appointed strategic advisor, Clifford B. Fleet, as its new CEO. Once the announcement was made, XXII stock rose to the highest level in August. This could become a stock to watch for this week.
Pot Stocks to Watch #3 cbdMD
Another penny pot stock that rose this week was cbdMD Inc (YCBD Pot Stock Report). The stock rose by as much as 13%. But remarkably there has been no penny stock news with regards to new developments that could’ve pushed it higher.
That being said, there can always be upcoming updates that only a few people in the market are aware of. Earlier in May, the company found itself in a bit of controversy after golfer Bubba Watson signed an endorsement deal with the hemp-infused CBD manufacturer.
