Are These Marijuana Penny Stocks On Your List Right Now?
As in the case with some penny stocks, the sector can play an interesting role. While health care and technology might weigh less heavily on the overall trend of a given stock, other industries like gold and marijuana are different. Case in point, last week former marijuana penny stock Aurora Cannabis (ACB Stock Report) came out with its quarterly results.
These weren’t just “any results” amid just “any time period”. The cannabis sector has been getting beaten up for over a year and the expectation wasn’t much different recently. What I’m talking about is market sentiment didn’t put many “high expectations” in place for pot stocks.
Marijuana Penny Stocks To Watch Today
So when Aurora came out with a surprise earnings beat, it incited some real excitement. “Could this be the pivot for marijuana stocks?” As I’m sure many of you had the thought also cross your mind, “just like that” marijuana stocks are back in focus. This isn’t a new story.
In the past, we’ve seen how pot penny stocks and “blue-chips” alike make moves on major industries developments. We saw it when Canopy (CGC Stock Report) did its deals with Constellation Brands (STZ Stock Report), when Cronos (CRON Stock Report) did its deal with Altria (MO Stock Report), the list goes on.
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In the spirit of a renewed interest in marijuana penny stocks, it makes sense to have a few on the list. What’s more is that others have also reported bullish headlines this week. So right now could be “high” time to have a list of penny stocks put together with a few pot names on it.
Top Penny Stocks To Watch: cbdMD
cbdMD (YCBD Stock Report) focuses on cannabidiol or “CBD” brands. The company’s current products include CBD tinctures, CBD capsules, CBD gummies, CBD topicals, CBD bath bombs, and CBD pet products.The company is also a partner of Bellator MMA and Life Time, Inc. It also has a roster of professional sports athletes who are part of “Team cbdMD.”
This week, cbdMD reported its second-quarter 2020 financial results. Let’s just say, similar to ACB stock, YCBD stock price has exploded following the news. Net sales came in at $9.4 million, up 67% from last year’s quarter. Gross profit margins as a percentage of net sales also jumped over 70%. Furthermore, cbdMD confirmed that it was on pace to reached positive cash flow this year.
“We believe we have more than enough financial cushion to get us to profitability. Despite these truly unprecedented times, we are thankful that early this year we made bold strategic decisions, such as becoming fully capitalized in January of 2020, paying for our infrastructure so we have almost no debt, promoting our online direct to consumer business model which has allowed us to pivot when needed, and choosing to operate our business with a view towards variable cost initiatives,” said Martin Sumichrast, Chairman and co-CEO of cbdMD.
Top Penny Stocks To Watch: Organigram Holdings
Another one of the marijuana penny stocks to watch this week is Organigram Holdings (OGI Stock Report). OGI stock hit new 52-week lows of $1.09 last week. But along with the rest of the sector, the penny stock made a strong rebound on Friday. This has continued into the early morning session on May 18.
Last week the company announced the first phase of its return-to-work strategy. Organigram said that it has begun to implement a staggered return-to-work plan. The first phase of Organigram’s return-to-work strategy involves recalling approximately 50 employees at its Moncton campus. According to the company, these employees will fill core roles across various departments “that have been deemed highest priority by the Organigram leadership team in this initial phase”.
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However, unlike YCBD and ACB, Organigam reported mixed earnings results last month. The company saw revenue slip 14%. It also realized a wider net loss. Missing estimates has never a great thing. But in light of results from its peers, this could be a major focal point for OGI stock. Needless to say, with a reopening plan in place, is there some light at the end of the tunnel for Organigram?
Top Penny Stocks To Watch: Hexo Corp.
Shares of Hexo Corp. (HEXO Stock Report) may be the last of the marijuana penny stocks under $1 listed on a major exchange. HEXO stock made a notable move on Friday, which has continued into Monday’s premarket session. While the pot penny stock closed the week at $0.5311, HEXO reached a high of $0.65 before the opening bell.
After closing a USD$33 million raise last month, Hexo got to work. Molson Coors (TAP Stock Report) and Hexo announced an expanded partnership with its joint venture in Colorado. The JV is to “explore opportunities for non-alcohol hemp-derived CBD beverages.” The venture, Truss CBD USA will be majority owned by Moloson Coors, and will operate as a standalone entity.
Molson Coors and HEXO have another joint venture to produce non-alcohol cannabis-infused beverages for the Canadian market called Truss Beverages. Truss has been preparing for launch, including completion of product formulations, branding and construction of a cannabis beverage production facility in Belleville, Ontario. Truss is expected to launch its first beverages in Canada later this year. Something to note, however, is that last week, the company reported a delinquency notice from the NYSE.
In response, among other things, the company said it is considering options to regain compliance. This “may include a share consolidation, if necessary”. As we’ve seen from ACB stock so far, however, the consolidation hasn’t negatively impacted the share price in the short term based on sector and company news. Would HEXO stock follow a similar trend?