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Marijuana penny stocks have started to catch attention recently. Some for good reasons, others for not the best reasons. This week, Stifel analysts downgraded their rating on top pot stock Aurora Cannabis (ACB Stock Report). Although the jury is still out on the validity of this move, it was a wrench thrown into an otherwise sound bullish trend over the last few days.
The cannabis industry received a massive boost last year when marijuana legalization kicked in across Canada. Since then, many stocks in the sector broke to incredible heights. Although the wind has gone out of the sails of most cannabis stocks over the course of the past few months, there are certain stocks which are still doing well.
Therefore, the sector still warrants close attention. On that note, here is a look at two pot penny stocks to watch in September.
Marijuana Penny Stocks to Watch: Discovery Gold (DCGD)
If one thing’s certain, it’s that penny stocks are incredibly volatile. No stock has demonstrated this fact better than Discovery Gold (DCGD Stock Report) has this year. Since early July, shares of the marijuana stock have flown to highs of $2.22. Just think, this stock traded as low as $0.0021 on January 31st. But volatility (if that’s what it was) had to be shown as a stock chart, DCGD stock chart clearly shows this:
Our readers aren’t strangers to this stock as it’s been periodically followed since July. However, the name itself does no justice to the company itself. Without looking at the company, you would assume that it’s got something to do with gold. So why is it on a list of marijuana stocks? The company’s in the process of changing its name to GRN Holding Corporation and has been positioning new management & board members to take a cannabis directive.
Clearly there was something that triggered a massive sell-off with this penny stock a few days ago but as of September 16, it appears that trend has reversed (for now). As stated in the article, “Money Making Penny Stocks: One Is Up Over 21,000% This Quarter“:
It’s very important to understand that moves like this aren’t the norm and still, speculation may play a role. Always do research and manage risk along the way. Volatility can hurt just as much as it has helped so keep that in mind with penny stocks that make big moves like this
In any case, DCGD has enjoyed a dramatic reversal from lows of $0.50 on Friday to highs of $0.98 the following trading day.
Marijuana Penny Stocks to Watch: Fire & Flower Holdings
The other pot penny stock that could be interesting for investors is Fire & Flower Holdings (FFLWF Stock Report) (FAF). It is a small-cap stock and unlike many other marijuana stocks, it hasn’t been considerably beaten down this summer. There are a few arguments in favor of the Fire & Flower stock.
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First, the company has signed asset purchase agreements with wholly-owned subsidiaries of Cannabis Cowboy Inc. The agreements see Fire & Flower adding eight proposed cannabis retail stores under development in the province of Alberta, to its books.
“This acquisition will increase Fire & Flower’s retail footprint across the province of Alberta , including three additional high-traffic locations in the major urban market of Calgary.”Trevor Fencott , Chief Executive Officer of Fire & Flower
Second, the pot penny stock has outperformed most other cannabis stocks during the wider sector downturn. Since hitting lows of $0.69 in mid-June, the stock has held an uptrend. As of this week, this penny stock reached highs of $1.28. Over this period Flower has run up 85.5% while other marijuana stocks are fighting to stay somewhat green.