Marijuana Penny Stocks Are Picking Up Steam In July, So What Should You Be Watching?
Investing in marijuana penny stocks can be a rollercoaster ride for many. Of course, the fluctuations experienced by this category of stocks add to the excitement. However, it’s important to note that penny pot stocks can also generate enormous gains. Particularly when one is investing in a rapidly growing industry like marijuana, the volatile upside could be even bigger. In a new and growing industry, many small companies can often grow quickly. For this reason, marijuana penny stocks are an interesting asset class.
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Don’t forget, it’s still necessary to make a list of penny stocks that are doing well. Then you’ll have to dig deeper to pinpoint things like fundamentals and technical chart patterns. Keeping this in mind, here are three marijuana penny stocks to watch that have made big moves recently.
Marijuana Penny Stock To Watch #1:
Auxly Cannabis Group
The first marijuana penny stock to watch: Auxly Cannabis Group Inc. (TSX: XLY) (OTC: CBWTF). The company produces cannabis products for both medical use and adult recreational use. Moreover, it has an international presence, which is a crucial element for any company trying to grow quickly. Auxly managed to get a steady and diversified supply of the raw material. In addition to that its research and development capabilities have allowed it to come up with good products.
Recently, Auxly appointed Andrew MacMillan as the Vice President of Commercial Business Development and following the appointment, the stock jumped by 10%. MacMillan had earlier worked as the CEO of the PEI Liquor Control Commission and had overseen the company’s cannabis operations under Cannabis Management Corporation.
After hitting lows of roughly $0.53 in late June, CBWTF stock has reversed the bear trend. The stock has climbed by 18% in just a few weeks. Thanks to shifting consumer trends, extracts have become a major attraction.
Marijuana Penny Stock To Watch #2:
22nd Century Group
The other marijuana penny stock that soared last week was 22nd Century Group (XXII Stock Report). There was no news in relation to the company but the stock jumped by 10%. Like many penny stocks, the 22nd Century stock has also fluctuated frequently over the past months. But the company has received some good penny stock news along the way.
In April, the company managed to successfully thwart an attack from a group of short sellers, which helped boost XXII stock somewhat. However, last month, the company made a significant announcement. The Food and Drug Administration (FDA) inspected Its Very Low Nicotine Content (VLNC) cigarette production facility. Since then, 22nd Century trading volume has been trending higher.
Marijuana Penny Stock To Watch #3:
MedMen Enterprises
The other marijuana penny stock to watch was MedMen Enterprises (MMEN Stock Report). The stock gained 15% without any related news, recently. But it needs to be pointed out that MMEN stock has been recovering over recent weeks. At one point, it had shed as much as 45% in 2019. The year hasn’t been that great for the company thus far. Why? The company recorded a net loss of $53.3 million in the latest quarter.
Hence, one can say that the latest developments haven’t been great. But the company is trying to reduce its costs and increase its sales significantly. Its retail presence in Nevada, Florida, and Arizona could be the engine for that reversal. Many analysts believe that the company could swing into profitability in the long run. What do you think about this marijuana penny stock?
