These Penny Stocks Could Be In Focus With Federal Marijuana Legalization Headlines This Week

When it comes to marijuana legalization, whether state level or federal, there are plenty of moving parts. One of the great things about so much happening is that each event is a potential catalyst for marijuana penny stocks. Even the slightest glimmer of hope or smallest hiccup can trigger a big reaction in the stock market. Needless to say, as traders, you should be aware of micro-trends as they develop.

This week we’ve seen pot stocks pick up a bit after weeks of dormancy. Why are marijuana stocks moving today? Senate Majority Leader Chuck Schumer, Senator Corey Booker of New Jersey, and Senate Finance Committee Chairman Ron Wyden hold a press conference this week. But this isn’t just any PR event. According to people close to the situation, the team will reveal a preliminary version of what’s expected to be titled the “Cannabis Administration and Opportunity Act.”

Further details have yet to be revealed. However, as we’ve seen so many times in the past, legislative events centered on potential marijuana legalization can evoke an immediate reaction from investors. In this case, the broader sector trend was very bullish on Tuesday. Sector ETFs, including the Advisors Share Pure US Cannabis ETF (NYSE:MSOS), the Alternative Harvest ETF (NYSE:MJ), and the Amplify Seymour Cannabis ETF (NYSE:CNBS), each pushed higher.

Penny Stocks Pop On Proposed Marijuana Legalization

Obviously, it wasn’t just marijuana ETFs jumping on this headline. Plenty of cannabis stocks also moved higher. It wasn’t a move only enjoyed by cultivation companies. It was a much broader trend. Something to keep in mind is that this isn’t the first or likely the last time a bill to federally legalization marijuana has stoked momentum in the market. The fact that there is still no formal law right now clearly shows that. However, with each new step by numerous groups, these three being the latest, progress is the goal.

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Will the presentation on July 14th be the one that gets fully approved? In my opinion, the fact that it’s already being called “preliminary” tells me that this is the beginning of the road, if anything at all. Needless to say, that could give rise to plenty more action steps to take that could ultimately help the industry grow in the long run. So with some bullishness ahead of Wednesday’s press conference, it may not hurt to have some marijuana penny stocks on your list right now.

Penny Stocks To Watch Pending Marijuana Legalization

Marijuana Penny Stocks To Watch 1. Organigram Holdings Inc. (NASDAQ:OGI)

If you’re new to trading marijuana penny stocks, you probably have a question if you’re looking at OGI stock right now. That question likely has something to do with the fact that Organigram is a Canadian company. So what would U.S. marijuana legalization have to do with it? Directly, probably not all that much right now, assuming no cross-border trade plans would be in place in the near term. However, if you’re a trader, you should understand how bigger-picture trends could bode for the industry at large.

This is the case with OGI, as well as countless other marijuana penny stocks on this list. The broader trend is bigger than the sum of its parts. Case in point, the pot stock rallied over 13% on July 13th. It was one of the biggest single-day moves for OGI in over a month. Organigram is a cannabis producer in Canada, and sector momentum wasn’t the only thing at play. The company also reported its Q3 figures for its fiscal 2021 year.

Results came in above estimates, with the company expecting Q4 figures to come in even higher than Q3. According to the company, this is due to stronger forecasted market growth during the economic recovery process.

marijuana penny stocks marijuana legalization Organigram Inc. OGI stock chart

2. Eastside Distilling Inc. (NASDAQ:EAST)

In the case of Eastside Distilling, it could be feeling some of the sympathy sentiment play a role right now. Traditionally speaking, the company focuses on consumer beverages. Its product portfolio includes bespoke spirits, liqueurs, and premixed cocktails. However, a while back, the company launched a new brand, Outlandish Beverages LLC. The target product was CBD beverages. This brand was built to market mixers and tonics.

[Read More] Hot Penny Stocks to Watch Today If You Like Marijuana Stocks

What I will say is that Outlandish seems to be a tiny piece of the Eastside puzzle. In fact, not much has been elaborated upon in over a year. The most recent investor deck doesn’t reference the brand either. However, in an 8K filing in February, Outlandish was mentioned among Eastside’s other subsidiaries regarding a loan maturity date extension with Live Oak Banking Company. So, there are a few breadcrumbs left leading back to Outlandish.

marijuana penny stocks marijuana legalization Eastside Distilling Inc. EAST stock chart

3. Evogene Ltd. (NASDAQ:EVGN)

Similar to Eastside, Evogene isn’t a 100% marijuana penny stock. The company operates via several district arms. Mainly operating in the biotech space, Evogene’s suite of companies includes Biomica (microbiome predictive biology), AgPlenus (agriculture chemicals to protect crops), Lavie Bio (microbiome tech for agricultural productivity), Castera (castor seed development), and Canonic for commercial medical cannabis products.

Clearly, it’s Canonic, which takes the focus in this article. Evogene announced earlier this year that Canonic entered into agreements with a medical cannabis company, Tikun Olam-Cannbit Pharmaceuticals. The duo will work to produce and distribute Canonic’s medical cannabis products in Isreal. While Evogene’s subsidiary isn’t set to begin distribution until 2022, it offers some preliminary exposure to the global cannabis industry.

marijuana penny stocks marijuana legalization Evogene Ltd EVGN stock chart

4. Intec Pharma Ltd. (NASDAQ:NTEC)

In the case of Intec Pharma, it has exposure to marijuana legalization via its treatment pipeline. One of the core points of interest for the company is its Accordion Pill delivery system. It hopes to enhance the efficacy and safety of existing drugs by utilizing this technology. One of its early state developments for the system is with its “AP-cannabinoids” platform. The goal is the leverage the Accordion Pill to deliver each or a combination of primary cannabinoids within Cannabis sativa, cannabidiol, and tetrahydrocannabinol.

A Phase 1 single-center single-dose study compared two forms of AP-CBD/THC with GW Pharmaceuticals’ (NASDAQ:JAZZ) Sativex. Results showed “significant improvements” in the exposure of CBD and THC versus Sativex. Though not much has been discussed by the company since then, it hasn’t stopped traders from speculating on things. Tuesday’s session saw NTEC stock jump over 8%.

marijuana penny stocks marijuana legalization Intec Pharma Ltd. NTEC stock chart

Will Marijuana Legalization Happen?

With so many states and countries riding the legal cannabis wave, the discussion surrounding federal marijuana legalization in the US is changing. More proposals are getting submitted, and more conversations are happening. Whether this next step results in a real bill is to be seen. But what we can say is that the speculative nature of the cannabis industry tends to feed off of the unknown. So if marijuana penny stocks are on your list right now, keep this in mind, and volatility can play its role in bullish and bearish sentiment-driven trading.

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