The pot industry has been in a bit of trouble for the better part of the year so far. Many pot penny stocks belonging to some of the leading companies have taken considerable hits. Despite all that, most experts believe that the cannabis industry is going to be a winner in the long term. Therefore, the interest in marijuana stocks has not receded much.
On the other hand, many pot penny stocks are now recovering from previous lows. While most blue-chip marijuana stocks continue to slide, penny stocks are actually weathering the storm. Here is a look at three pot penny stocks that are recovering this week.
Pot Penny Stocks #1: HEXO (HEXO)
The first pot stock to watch is HEXO Corp (HEXO Stock Report). It experienced a significant jump on Thursday after it announced its joint venture, Truss Beverages. Truss Beverages is the company’s high profile joint venture with brewing giant Molson Coors Brewing (TAP Stock Report). This week, HEXO announced its plans to launch as many as six cannabis-infused beverages.
The products are going to be launched for the Canadian market. The first product ready for launch is spring water infused with CBD. The spring water product is being developed in collaboration with Flow Glow Beverages. After the news broke, HEXO stock rose by as much as 17.4%. It remains one of the penny stocks to watch over the coming days.
Pot Penny Stocks #2: CV Sciences (CVSI)
The other marijuana stock which has been on the road to recovery this week is CV Sciences Inc (CVSI Stock Report). The company is a manufacturer and supplier of hemp-based CBD products. Its PlusCBD Oil is a dominant product in the industry.
In a new development, the company laid the foundations for further expansion of its retail footprint. This came when striking up a partnership with The Vitamin Shoppe.
[LEARN MORE] How To Make Money With Penny Stocks
Its products will now be available in as many as 515 Vitamin Shoppe stores spread across 36 states in the US and Puerto Rico. It is a massive development for the company and the stock rallied 12% yesterday.
Pot Penny Stocks #3: Health and Recreation (HRVSF) (HARV)
Last but not least, Health and Recreation Inc (HARV) (HRVSF Stock Report) stock managed to climb considerably this week. It came after a major announcement from the company. The company announced that a Harvest Health affiliated dispensary is being opened in Scranton, Pennsylvania. This obviously helps the company expand its presence in the state further.
The news was welcomed by investors and the stock jumped by as much as 13%. It might be a pot stock to keep an eye on over the coming weeks. We’ll update along the way if/when new developments come.
Are Penny Stocks Worth It?
Obviously this is a question that only you can answer. Here’s what we know about penny stocks:
- Penny Stocks are High-Risk Investments
- These Cheap Stocks Are Highly Volatile
- Many Penny Stocks Report The Minimum Required Information Making It Difficult To Get A Full Picture
- You Can Lose A Lot Of Money With Penny Stocks; and
- You Can Make A Lot Of Money With Penny Stocks
That last point is what makes people love finding penny stocks to trade. But keep in mind that if you’re looking to “get in the game,” that you understand the risks involved. Treat penny stocks like an investment and not a lottery ticket. It isn’t hard to throw $100 at a random stock and hope that it doubles. But “hope” shouldn’t be part of anyone’s strategy. It’s right up there with “luck”.
If you’re going to start investing in penny stocks you should have a clear strategy. Develop of full understanding of how to find information on penny stocks. Understand how to read corporate filings and what to look for. It’s also good to have a basic handle on the industry that your target penny stock is in. And if you’re really new to penny stocks, check out our FAQ below:
Frequently Asked Questions
What Are Penny Stocks?
Penny stocks – sometimes referred to as cheap stocks – are shares of companies that trade at low price levels. Typically smaller companies, these penny stocks trade as low as $0.0001. But based on the definition of penny stocks, companies can fall into this designation with a price of $5 or less.
How Do I Buy Penny Stocks?
It’s easy to buy penny stocks. You need to find a broker that will give you access to penny stocks. Pay attention to fees that these brokers charge as well. Many of the top penny stock brokers will have low fees to attract new clients. Once your account is confirmed, you can start finding penny stocks to buy.
Can You Make Money With Penny Stocks?
You can make money with penny stocks. Though it is very important to due research in order to find the best ones. At the very least, you should make sure to set yourself up for success. This means you should always protect your capital. Don’t stay in a losing trade if at all possible. It can be better to cut losses quick than hope a stock rallies someday in the future.
Is It Illegal To Buy Penny Stocks?
Despite what you may think, it isn’t illegal to buy penny stocks. Sometimes people conduct illegal business by manipulating these cheap stocks. But to buy or sell penny stocks, this is a fully legal thing to do.