3 Penny Stocks to Watch With the Cannabis Legalization Bill
In the past few years, we’ve seen the influence of marijuana legislation on penny stocks continue to climb. And with a potential floor vote for federal cannabis legalization occurring in the next few days, many penny stocks investors are excited.
What the Cannabis Legalization Bill Means for Stocks
This comes in a recent report that stated Congress has a scheduled vote to potentially legalize marijuana. And while nothing is set in stone, this is certainly an exciting prospect. As a result of this, we saw the price of many cannabis stocks shoot up as trading ended on Thursday, March 24th. Now, this is a big event for investors as cannabis stocks have taken a backseat to more pressing geopolitical and economic factors.
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Because of that, many are excited to see what occurs in the coming days regarding this. In addition, the issue of cannabis legalization has bipartisan support due to the tax benefits and the major success stories for states that have already done so. For months, Senate Majority leader Chuck Schumer has been talking to President Biden, stressing the importance of cannabis legalization.
And while next week may not be the be all end all choice for this, it definitely will have an impact. Today, we saw stocks like FSD Pharma Inc. (NASDAQ: HUGE) and OrganiGram Holdings Inc. (NASDAQ: OGI) among others, move during intraday trading. So, with that in mind, let’s take a look at three marijuana penny stocks to watch right now.
3 Marijuana Penny Stocks to Watch in 2022
- Clever Leaves Holdings Inc. (NASDAQ: CLVR)
- Cronos Group Inc. (NASDAQ: CRON)
- Hexo Corp. (NASDAQ: HEXO)
Clever Leaves Holdings Inc. (NASDAQ: CLVR)
Up by over 27% at EOD on March 24th is CLVR stock. This is a substantial gain and reflects the release of its Q4 and full year 2021 financial results. In the results, the company stated that its revenue in the fourth quarter and full year increased by 25% and 27% respectively. In addition, the company announced that it is making big progress in several of its core markets. While it did pull in a net loss of $24 million, it states that this is mostly due to an $18.5 million non-cash goodwill impairment charge.
“We have made progress in the fourth quarter by strengthening our operational foundation and advancing our commercial momentum to better position us for 2022. We delivered year-over-year revenue growth of 26% and 29% across our non-cannabinoid and cannabinoid businesses, respectively. We also maintained our prudent approach to cost management as we drove continued production efficiencies.”
The CEO of Clever Leaves, Andres Fajardo
These results are exciting for the company and show that it is experiencing solid growth right now. With that in mind, will CLVR be on your list of penny stocks to watch?
Cronos Group Inc. (NASDAQ: CRON)
Another popular marijuana penny stock right now is Cronos Group Inc. By EOD on March 24th, shares of CRON stock shot up by over 8.7%. In addition, during after hours, CRON stock spiked by over 5%, ending the day at more than $4.22 per share. The main reason for this comes alongside the potential legislation going in place in the U.S. And while this is still all speculation, we saw a similar sentiment across the cannabis industry today.
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Another big announcement from Cronos came a few days ago when the company announced that Mike Gorenstein would return as its CEO. This is a big deal for the company and Mike could help to lead it to new heights. Although we have seen only small amounts of movement in the cannabis industry in the past year or so, the hopes are that legislation will ignite a new flame. Because Cronos Group is such an integral part of the industry at large, it remains a key penny stock to watch.
Hexo Corp. (NASDAQ: HEXO)
With over 13% in gains at EOD and more than 8% during premarket, HEXO is another penny stock that is exploding right now. And similar to Cronos, Hexo Corp. is a huge player in the cannabis industry and has been for several years. A few days ago, Hexo announced its second quarter 2022 financial results. In the results, it managed to bring in net revenue of $52 million, which is a 61% increase over the same period of the previous year.
“This has been a transformational quarter for the Company and we’re very pleased with the progress we’ve made on a number of fronts. We’ve finalized terms of a number of proposed agreements, including the recently announced strategic investment from Tilray, that will, once finalized, restructure the more onerous repayment and liquidity terms of the Secured Note. We expect this much improved structure will allow us to accelerate our growth path and unlock the full potential of the organization.”
The Chair of the Board and Executive Chair at Hexo, Mark Attanasio
All of this is great news for HEXO and investors alike. If we consider the sheer movement in the cannabis industry right now, we see that HEXO remains a popular choice. With that considered, will it be on your list of cannabis penny stocks to watch?
Are Marijuana Stocks Worth Buying?
Finding the best marijuana penny stocks to buy in 2022 is challenging. While the market has seen its fair share of ups and downs, paying attention to the news will give you the best chance at making profits.
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With marijuana stocks, understanding the latest updates is crucial. And, with next weeks potential vote coming into play, there is a lot to look forward to. With this in mind, do you think that marijuana stocks are worth buying or not?
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