These Marijuana Penny Stocks Are Climbing After Latest Activity With MORE Act (HR 3884)
Penny stocks have often proven to be among the best investments for thousands of investors. It has led to the creation of enormous wealth. So, it isn’t a surprise that investors are always on the lookout for the next big thing.
With this in mind, the cannabis industry is fast emerging as one of the hottest sectors. Thanks to the downturn across the sector, many are now classified as penny stocks. Look at any marijuana stock ETF and it’s quite evident that cannabis hasn’t received a warm welcome. Some of the most well-known names have also followed suit.
But something happened this week that could pave the way for the industry’s next catalyst. Though cannabis is legal at the state level among certain US states, it isn’t legal federally. This has put a burden on certain investors who are restricted from buying US names simply because the drug isn’t federally legal. This also mean banking is a huge issue and has contributed to the heavy scrutiny.
MORE Progress For Marijuana Stocks
This isn’t just a play on words. Today the MORE Act took a big step forward. The House Judiciary Committee voted in favor of the Marijuana Opportunity Reinvestment and Expungement Act (MORE). The act looks to remove a federal ban on cannabis while also expunging past convictions.
Also known as HR 3884, the Committee passed it with a bipartisan vote of 24-10. This obvious favor echoed across the cannabis sector as investors turned attention back to this beleaguered sector.
“The passage of the MORE Act represents the first time that the Judiciary Committee has ever had a successful vote to end the cruel policy of marijuana criminalization.”
NORML Political Director Justin Strekal
The Act gives power to the states and allows them to decide legislative matters regarding legal cannabis. It also opens Small Business Administration funding for cannabis-related businesses and service providers who run reputable organizations. Additionally, it includes a clause that allows prior offenders to request the expungement of convictions related to cannabis infringements. It’s definitely going to be a developing story to follow.
Given the circumstances, pot stocks are in focus and based on the previous slide, conveniently enough there are several marijuana penny stocks turning heads right now.
Marijuana Penny Stocks To Watch #5 Organigram Holdings (OGI)
The first cannabis penny stock to watch is Organigram Holdings (OGI Stock Report). Like many other cannabis companies in the industry, OrganiGram had also suffered from a bit of a slump in recent weeks. On Tuesday, the stock jumped significantly. OGI stock soared by as much as 11.7% at one point and experts believe that is due to the recent industry events.
Trading volumes have climbed significantly over the last few weeks. Organigram previously dropped hard after negative analyst price target cuts were issued. However, sentiment has once again moved in favor of the pot stock. The company is a licensed producer in Canada and has developed a host of cannabis brands. These include Ankr Organics, Trailblazer, and The Edison Cannabis Company.
Marijuana Penny Stocks To Watch #4 HEXO (HEXO)
The other cannabis penny stock that went up this week was Canadian cannabis producer HEXO Corp (HEXO Stock Report). HEXO stock went up by 34% from its 52-week lows hit on Tuesday. Analysts believe that the rise is primarily because of a classic short squeeze.
It has been revealed that as many as 29.7 million shares of the company are currently engaged in short positions. Therefore, in order to cover some of the risks, short-sellers may have decided to buy some shares of HEXO stock back.
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What is also interesting is what a recent corporate filing revealed to the public. In a 13G, we now see that ETF Managers Group raised its stake in Hexo. This was from 10.1 million shares to roughly 13.5 million shares. It also equates to a stake in the company of more than 5.2%.
Marijuana Penny Stocks To Watch #3 Canopy Rivers (RIV) (CNPOF)
Next, Canopy Rivers (RIV) (CNPOF Stock Report) is another cannabis penny stock that has managed to go on a steady rally recently. It was a forgettable time for the company’s investors last week as the stock plunged. It came after the company announced a net loss of CA$ $4.41 million in the second quarter. In the year-ago period, the company had generated income of CA$ 10.95 million.
Regardless of this fact, shares of Canopy Rivers have rebounded sharply from this week’s 52-week lows of $0.78. It has come back up by as much as 35% after hitting highs of $1.05 following the Committee’s decision. However, it will be interesting to see where Canopy Rivers finishes out the week. The stock retreated later in the afternoon on Wednesday to its opening price of $0.95.
Marijuana Penny Stocks To Watch #2 Aurora Cannabis (ACB)
If you read our original article on Top 10 Popular Penny Stocks On Robinhood For November, Aurora Cannabis (ACB Stock Report) took the top spot. Well, not only is that still the case but it is also the single-most popular stock on Robinhood too. According to metrics on the company’s website, over 554,000 users have ACB stock in their portfolios at the time of this article.
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Similar to the above companies, Aurora also hit fresh 52-week lows this week but have since bounced back in light of these recent developments. Lows were at $2.14 and shares have recovered as much as 27% following highs of $2.73 on November 20.
Compounding on top of this was Aurora’s latest news of adding new members to its leadership team. The company added Shane Morris as Chief Product Officer and Andre Jerome as Chief Integration Officer.
“Aurora is committed to maintaining its global leadership position in the cannabis industry and we have built a strong team that will drive the future growth and strategic development of the business,” said Terry Booth, CEO of Aurora. Something to also note is that these two don’t come from outside the company and were internal promotions to these positions.
Marijuana Penny Stocks To Watch #1 Aphria (APHA)
Finally, shares of Aphria (APHA Stock Report) also surged on Wednesday on this latest industry jolt. The company itself has also added to its team. Late last week Aphria announced that it brought on Jodi Butts, Denise Faltischek and Bernie Yeung. There were also several promotions to the company’s executive team.
“We are excited to welcome Bernie and Denise to the Aphria team and very pleased to announce the well-deserved promotions of Tamara and Megan,” said Irwin D. Simon, Aphria’s Board Chair and Interim Chief Executive Officer.
Though APHA stock didn’t hit 52-week lows, it came close this week. From those levels to Wednesday’s high, shares jumped 24% within just a few days. The biggest question for this and others mentioned is: can the momentum continue? Furthermore, are the next steps for this MORE Act just as promising as today with regard to the passage?
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