3 Pot Penny Stocks To Watch Before September
Marijuana penny stocks and pot stocks, in general, have gotten beaten down for a while now. However, the last 2 weeks have seen unrelenting pressure. What may have been a sector rotation could now be settling down. As one Wolf puts, this could be just the start.
Popular Twitter personality, co-owner of MarijuanaStocks.com, and one of the top traders at True Trading Group, Jason Spatafora knows a thing or two about pot stocks. He even goes by the name The Wolf Of Weed Street. With more than 50,000 followers, his voice has been a key source of focus for both experienced and novice marijuana stock investors across the globe.
Recently, Spatafora tweeted: “12 days later MSO’s have run up 20/30% + Canadian LP’s are shitting the bed… exodus out of Canada started right before/after earnings.” As we’ve seen at the end of the week, marijuana penny stocks are beginning to make a stand.
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This is in light of recent conversation about what certain Presidential candidates would mean for things like legalization, specifically in the U.S. New proposals in states like Florida, Pennsylvania, New Jersey, and even Nebraska have brought heightened attention to the sector. On Friday, the ETF Managers Trust ETFMG (MJ ETF) experienced its largest 1-day move in nearly 3 weeks. In light of this, is it time to look for some marijuana penny stocks to buy right now or should you still stay on the fence?
Marijuana Penny Stocks To Buy [or wait]: Aphria Inc.
Shares of Aphria Inc. (APHA Stock Report) echoed a similar trend as the MJ ETF. Ever since dropping from July highs of $6.15, APHA stock has failed to recover. On Friday, however, APHA also saw its biggest 1-day move in weeks.
Shares spiked to early highs of $4.80 during the morning session with more than 18 million shares traded by the lunch hour. The move comes in light of the more recent update on Pennsylvania’s governor calling for cannabis legalization in the state.
While APHA stock has been on the radar for a while, most recently it came to light as one of the popular penny stocks on Robinhood. CIBC analysts upgraded the pot stock to Outperform from Neutral. They also gave APHA a $7.50CAD price target.
“Aphria should be able to survive regardless of the pace of evolution in Canada’s cannabis market, and a US market entry would represent a potentially material catalyst…Our volume and market share assumptions are mostly unchanged, but we believe pricing, particularly in the value segment, where each company has captured a meaningful following among consumers, will continue to see compression over the coming year.”
Marijuana Penny Stocks To Buy [or wait]: Hexo Corp.
Another one of the frequent mentions on lists of pot penny stocks has been Hexo Corp. (HEXO Stock Report). It’s one of the few main indexes listed marijuana stocks under $1 right now. Prior to that, companies like Aurora were leading the charge for cheap pot stocks. Needless to say, weighing in around $0.70, HEXO stock has been stuck in a sideways trend for a few weeks. However, overall, it’s up roughly 60% since mid-May. That was when Hexo received its NYSE listing notification for not meeting minimum listing requirements.
A few weeks back, Hexo buttoned up a $34 million CAD offering. The company said it expects to use the net proceeds for general corporate purposes. Hexo said this may include working capital, capital expenditures, and debt repayments. Something we noted in the past was growing interest in the pot penny stock recently.
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If you look into Hexo’s filings, you’ll also see that ETF Managers Group filed a 13G this month. It showed the firm held a 5.2% stake in HEXO stock, which was almost 1% higher compared to its July 13G filing. While this seems to have been more of a non-event than anything, ETF purchases could be something to note especially when it comes to certain marijuana penny stocks.
Marijuana Penny Stocks To Buy [or wait]: Planet 13 Holdings Inc.
Shares of Planet 13 Holdings Inc. (PLNHF Stock Report) saw an epic rally from March to mid-August. Following a period of consolidation, PLNHF stock has mounted a mini recovery on Friday. Shares hit early morning lows of $3.09 and promptly bounced back above $3.30 by mid-day. If you haven’t come across this company yet, Planet 13 is a bit unique. It has built somewhat of a Mecca in Las Vegas centered on a cannabis compound.
Earlier this month, the company announced it agreed to a settlement of an ongoing lawsuit against the Nevada Department of Taxation and other parties. As part of the settlement, Planet 13 is receiving one provisional adult-use dispensary license in unincorporated Clark County, Nevada. The License will be used to re-open Planet 13’s former Medizin dispensary located at 4850 Sunset Road in Las Vegas, Nevada, which closed in 2018. This is an interesting time to be looking at Planet 13. That’s because it’s set to release earnings on Monday with a conference call after the market closes.
During the second quarter, Planet 13 achieved several milestones. It renegotiated terms and acquired Newtonian Principles Inc. This, in turn, allowed Planet 13 to gain a California cannabis sales license and 30-year lease on a dispensary. In July, the company also acquired cannabis assets, including inventory and equipment as well as a Nevada cannabis license at a 45k sq/ft facility in Las Vegas; pending approval.
Last quarter, the company saw year-over-year revenues jump 99.8% to $16.5 million. Net loss also declined as well. For the quarter, Planet 13 reported a loss of $2.6 million compared to $3.1 million previously.