Marijuana Stocks Are Few & Far Between On Robinhood But These Are Seeing Action
If there’s one group of stocks that has seen its fair share of volatility it’s been marijuana penny stocks. These cheap names have been a source of excitement and of despair with laws constantly changing. While there hasn’t been a clear cut path forward for federal cannabis legalization in the U.S. (yet), the incoming administration has vowed to make it so.
On the campaign trail, incoming Vice President Kamala Harris emphasized a commitment to push for steps to decriminalize the drug at the very least.
“We have a commitment to decriminalizing marijuana and expunging the records of people who have been convicted of marijuana offenses. When you look at the awful war on drugs and the disproportionate impact it had on black men and creating then criminal records that have deprived people of access to jobs and housing and basic benefits.”
With the Georgia Senate runoffs overnight, eyes were on the state of the outcome on Wednesday morning. Here’s what we know so far: Democrat Raphael Warnock is expected to win the special Senate runoff election against GOP Senate candidate Kelly Loeffler. Democrat Jon Ossoff is currently leading Sen. David Perdue in the other race (as of 8:50 AM EST). Why could this be important to the potential of marijuana stocks right now? If Ossoff wins, Democrats will claim control of the Senate with a 50/50 divide, plus a tie-breaking vote from Kamala Harris after she is sworn in as vice president.
December’s Bill Has Marijuana Penny Stocks In Focus
Last month the U.S. House of Representatives approved a bill to federally legalize marijuana in a historic vote. That bill then gets pushed to the senate. However, in light of recent and more important stimulus dealings, there haven’t been many updates since the House approved the bill.
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However, it doesn’t put pause on the opportunity that could be created if passed. It would generate roughly $13.7 billion in net revenue for the U.S. treasury over the next decade, according to a report by the Congressional Budget Office. It would also cut federal prison spending by nearly $1 billion. The MORE Act faced an uphill battle in the Senate due to the GOP majority.
However, in light of the recent runoff results, that may not be the case. That is, assuming, a Dem. majority would support such a bill. While there’s still plenty of unknowns to this right now, the market has digested the info and placed stronger weight on a favorable outcome in light of these runoff results. Regardless of how you feel about pot penny stocks, the market has spoken and traders are looking for marijuana stocks to buy.
What Will Robinhood Traders Do?
Herein lies an underlying divide. This is a US-focused event however, most listed stocks (NYSE/NASDAQ) are Canadian-based companies. That poses a problem for users of apps like Webull and Robinhood. Penny stocks are not only limited to these listed names, since the vast majority of US MSOs are dually listed with the US listing being on the OTC, traders using these apps cannot access many of the companies that would likely benefit from such an initiate as the MORE Act.
So what happens next? Robinhooders and Webullers will do what they typically do, which is to find ways of gaining exposure to the industry as a whole. This might entail focusing on ETFs like the AdvisorShares Pure US Cannabis ETF (MSOS ETF), which does have positions in many OTC marijuana stocks. However, it may also entail focusing on companies with exposure to cannabis no matter which country that may include. However, with every buy, there’s a sell. So it’s up to you to decide if these are the best penny stocks to buy right now or not. Here are some on the watch list of Robinhood traders right now.
Robinhood Marijuana Stocks To Watch
- Hexo Corp. (HEXO Stock Report)
- Organigram Holdings (OGI Stock Report)
- Greenlane Holdings Inc. (GNLN Stock Report)
- Sundial Growers Inc. (SNDL Stock Report)
Robinhood Marijuana Stocks To Watch #1: Hexo Corp. (NYSE:HEXO)
Hexo Corp. recently effected a reverse stock split prior to the end of the year. As many of our readers know, HEXO stock was one of the last-remaining marijuana stocks under $1 for months. Following the reverse and fiscal Q1 2021 results mid-month, shares of HEXO stock popped then dropped during the last few weeks leading up to 2021.
Despite this having been the case, Hexo remained a focus for traders ahead of the Senate runoff vote. This wasn’t only because of what it might mean for cannabis stocks in general but also due to the stronger financial results that were actually reported. Q1 sales came in at nearly $29.5 million, which was up considerably, year-over-year. This was a 103.35% increase over sales of $14.50 million in the same period last year. Gross revenue of $41.3 million was the highest in Hexo’s history, which increased roughly 14% from Q4 2020 and 114% from the prior-year period.
HEXO is now top four in adult-use market share by net sales dollars in Canada. We have also moved into the top beverage spot through Truss, our joint venture with Molson Coors, and have reached the number one market share position for hash, which we believe will continue to be an important category for the industry,” said HEXO CEO and co-founder Sebastien St-Louis.
Robinhood Marijuana Stocks To Watch #2: Organigram Holdings (NASDAQ:OGI)
Organigram is another one of the marijuana penny stocks on Robinhood to watch this week. As another Canadian-based company, it’s a bit harder to consider it to be impacted by U.S. legislation. However, as discussed above, OGI stock could simply be on the watchlist due to industry-wide bullishness. That, and the fact that it is another one of the few pot penny stocks accessible to apps like Webull and Robinhood.
As far as recent updates from the company, Organigram has focused on expansion. Toward the end of 2020, the company launched three new Edison Cannabis Co. Indica strains. These included high potency Black Cherry Punch and Ice Cream Cake, and full flavor Slurricane. What’s more is that next week the company is set to release its Q1 fiscal 2021 earnings. So if OGI is on your list of marijuana penny stocks on Robinhood, keep January 12th in mind. This is when the company is set to report.
Robinhood Marijuana Stocks To Watch #3: Greenlane Holdings Inc. (NASDAQ:GNLN)
Greenlane is part of the pick and shovel side of the cannabis industry. It is a U.S. based company, however, it doesn’t touch the plant at all. It’s more along the lines of a retail company in the more traditional sense. Greenlane is a brand house specializing in things like vaporization products and accessories.
It has also become the exclusive US distrbution partner to several well-known brands. These have included deals with PAX LABS, Stündenglass™, and others. In headlines today, Greenlane announced that it has partnered with Last Prisoner Project. This is a nonprofit organization working for clemency and expungement as well as with re-entry programs and advocacy for those with cannabis convictions.
“Last Prisoner Project has made incredible progress towards its mission and Greenlane is proud to contribute to such a committed and influential advocacy group that is generating meaningful change,” said Aaron LoCascio, Co-Founder and CEO of Greenlane.
Robinhood Marijuana Stocks To Watch #4: Sundial Growers Inc. (NASDAQ:SNDL)
Finally, Sundial Growers Inc. has become one of the most discussed pot stocks in the stock market today. It has been the center of concern, optimism, negativity, uncertainty; you name it. Needless to say, it is one of the more actively traded marijuana stocks on a daily basis rarely seeing less than 70 million shares traded per day. Most of the time, SNDL stock typically sees north of 100 million shares trade per day.
No matter what your feeling is on the company or its prospects, the trading activity in the stock is what many have focused on. This week, the company provided a new update on operations ahead of the final decision of the Georgia Senate runoff elections.
“Sundial Growers’ subsidiary special purpose vehicle that owns $51.9 million of aggregate principal amount of senior secured debt of Zenabis Investments Ltd., a subsidiary of Zenabis Global Inc. received a principal repayment of $7.0 million on December 31, 2020 in accordance with the terms of the Senior Loan.”
Even with the Payment, a notice of default was delivered to Zenabis. This was with respect to certain defaults under the terms of the Senior Loan. According to today’s update, Zenabis is disputing said defaults. Sundial acquired the Special Purpose Vehicle at the end of December last year. It gives access to certain royalties due based on quarterly sales revenue from Zenabis’ medical, recreational, and wholesale cannabis lines net of value-added or sales taxes.
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