5 Marijuana Penny Stocks To Watch Right Now
Marijuana penny stocks are among some of the hottest names to watch right now. I’m not just talking about speculation on who wins this 2020 Presidential Election either. The slew of new legislative moves made in states like New Jersey, Arizona, Mississippi, South Dakota, and Montana have investors buzzing about U.S. pot. In fact, it takes less time to count the states without legal cannabis (rec or medical) than ones with legal cannabis. After this election, only 17 U.S. states are left without access to some form of legal marijuana.
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What does this tell you about the trend right now? Furthermore, with states like New Jersey & Arizona going fully legal, their geolocation could make for an interesting scenario for surrounding states. New Jersey, in particular, rubs up right against New York (obviously), with only bridges separating it from the highly populated NYC. Is a New York State recreational bid inevitable at this point?
What’s Next For Marijuana Stocks?
While time will certainly tell, many new laws won’t go into effect until the beginning of 2021. This might be a sad reality for consumers but for cannabis companies, a welcome opportunity to begin expanding infrastructure. As we saw earlier today, Aphria, Inc. (APHA Stock Report) took a direct initiative to enter the U.S. market. The company announced that it acquired SweetWater Brewing Company. The branding of SweetWater, for those unfamiliar, is more akin to cannabis consumers than others. However, until now, there’s only hops and barley in their brews.
In light of this, many traders are focusing their attention on marijuana MSOs or “multi-state operators” in the U.S. This isn’t to say that Canadian marijuana stocks are out the window. However, with these latest developments, there’s a broader focus on pot penny stocks right now.
Marijuana Stocks To Watch:
- Planet 13 Holdings (PLNHF Stock Report)
- Jushi Holdings Inc. (JUSHF Stock Report)
- Hexo Corp. (HEXO Stock Report)
- Organigram Holdings Inc. (OGI Stock Report)
- CbdMD Inc. (YCBD Stock Report)
Marijuana Penny Stocks To Watch #1: Planet 13 Holdings (OTC:PLNHF)
Planet 13 Holdings has been pushing higher for most of 2020. The Las Vegas-based cannabis company has been well-known for its destination-based offering. The company’s vertically integrated model involves everything from cultivation to production and dispensary operations. Its location is definitely a site to see and has continued drawing a crowd of tourists yearly.
This was confirmed in its most recent third quarter results. Planet 13 reported preliminary results for the quarter showing a 110% increase in revenue, quarter-over-quarter. At $22.8 million, this was the highest quarter in the company’s history with in-store sales and home delivery helping lead the way. Margins also came in strong at roughly 50% with the dispensary serving some 1,625 customers per day, in average, in the store itself.
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With the company raising some C$28.8 million for retail expansion, it will be interesting to see what the 4th quarter brings. Can the growth continue and how will the expansion impact the next few quarters of proposed growth?
Marijuana Penny Stocks To Watch #2: Jushi Holdings Inc. (OTC:JUSHF)
Jushi Holdings Inc. is another multi-state operator. With active and in progress operations in Illinois, Ohio, Verginia, Pennsylvania, New York, Nevada, and California, Jushi has focused on an expanded footprint in the U.S. The MSO also expected to report record numbers in its Q3 results.
Revenue is expected to com in toward the higher end of its previous guidance ($24 million). It guided Q3 revenue between $22 and $25 million. This $24m figure equates to a 61% sequential growth. The company also discussed its Q4 2020 total revenue coming in at the high end of the previously announced range of $25-30 million.
Total fiscal year 2021 revenue was revised from $200-250 million to $205-255 million with adjusted EBITDA expected to come in between $40-50 million. Right now it looks like Pennsylvania and Illinois account for a majority of the company’s revenue with Virginia as a distant third. Assuming continued strength in its growth trajectory, will JUSHF join your marijuana stocks list?
Marijuana Penny Stocks To Watch #3: Hexo Corp. (NYSE:HEXO)
Hexo Corp. has a love/hate relationship with traders. It’s one of the lower priced marijuana penny stocks. However, it’s also one that doesn’t usually have much to discuss aside from maybe a financing round or, recently, a reverse stock split. Last week, the company announced a proposed 8 for 1 split of its common shares with an approval date of December 11th where shareholders get to weigh in.
One of the main drivers this week other than legislative maneuvers could be the Aphria/Sweetwater news. Many moons ago, Hexo and Molson Coors (TAP Stock Report) inked a deal for a partnership and joint venture. Earlier this year, the two expanded their partnership in Colorado. Called Truss CBD, Molson holds a majority stake with the focus initially on CBD beverages.
“Exploring hemp-derived CBD beverages is part of Molson Coors’ strategy to grow beyond the beer aisle with wine and spirits and non-alcohol drinks. Molson Coors and HEXO have another joint venture to produce non-alcohol cannabis-infused beverages for the Canadian market called Truss Beverages.”
Will this sympathy momentum continue to give HEXO stock a boost heading into the end of the week?
Marijuana Penny Stocks To Watch #4: Organigram Holdings Inc. (NASDAQ:OGI)
Organigram Holdings Inc. has also seen a nice surge in momentum this week. Sector sympathy might be the main driver for OGI stock right now, however. The company’s operations are focused in Canada which doesn’t really mean anything in US markets would directly impact the company.
Organigram sells product in all 10 Canadian provinces with multiple medical and recreational brands. These range from value to premium price ranges in both flower and derivative forms. While there haven’t been many new updates recently, Organigram has managed to attract some bullish attention from a few analysts.
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Cantor Fitzgerald, Canaccord Genuity, Pi Financial, and Jefferies all have Buy ratings for the stock. Price targets range from $1.75 to $5.35 among these analysts.
Marijuana Penny Stocks To Watch #5: CbdMD Inc. (NYSE:YCBD)
CbdMD Inc. saw a nice spike above its 50 day moving average on Thursday with well-above average volume. This came in light of recent sector momentum as well as a boost from its latest update. The company announced that it is on track to submit its Novel Foods Dossier with the United Kingdom’s Food Safety Agency by the required regulatory filing deadline of March 31, 2021.
“By allowing CBD product manufacturers to obtain a Novel Food Authorization from the FSA, the UK is now leading the world in CBD regulation. cbdMD believes it’s in a unique position to demonstrate the safety of its products to the FSA and therefore we believe will be one of the few CBD companies that will be allowed to continue to sell their CBD products on UK’s retail store shelves after the March 31, 2021 deadline.”
Chief Marketing Officer, Ken Cohn
CbdMD products include CBD tinctures, CBD capsules, CBD gummies, CBD topicals, CBD bath bombs and CBD pet products. In its preliminary fiscal fourth quarter 2020 report, CbdMD expects sales to come in above $11.03 estimates. Meanwhile, the company sees fiscal 2020 sales coming in between $41.7 million and $41.8 million. This was also above estimates ($41.22m).
