Marijuana stocks have been in a bit of trouble over the course of the past few months. Many of the leading stocks in the industry experienced significant declines. The same happened with many of the penny stocks in the marijuana industry.
Considering the fact that the industry still remains primed for growth, it’s worthwhile taking a look at some of these stocks ahead of upcoming legislation. In fact, some marijuana penny stocks have also started rebounding this week. So, perhaps it is time to take a closer look at a few of those. Here is a look at 4 such pot penny stocks.
Marijuana Stocks To Watch #1: Dixie Brands (DXRBF)
A newer addition to a list of marijuana stocks to watch, Dixie Brands (DXRBF Report) caught attention in August. The pot stock announced an agreement with iced tea maker AriZona to look into the production of cannabis-infused products. As discussed, October marks the date that derivatives of cannabis will gain more attention. Canada will legalize it for inclusion in things like beverages. Then retail sales are expected to begin before the end of the year.
AriZona has an affiliate, Herbal Enterprises that will be handling branding and conceptualization. Thanks to this news and market speculation, Dixie stock has taken off. Since hitting 52-week lows of $0.3675 in late July, shares are up by more than 165%. This came as the marijuana stock made new August highs of $0.99 on August 14.
Marijuana Penny Stock To Watch #2 MedMen Enterprises (MMNFF)
The next marijuana stock to watch is MedMen Enterprises (MMEN) (MMNFF Report). The cannabis company announced its preliminary earnings for the fourth quarter this week. For the quarter that ended on June 29, MedMen reported revenues of $42 million. That reflects a 14.8% from the previous quarter.
In addition to that, revenues from the company’s stores in California stood at $27.4 million in the quarter. That reflected a 10% growth. After the publication of these numbers, the stock received a boost from investors and rose to highs of $2.21. The company has been shrouded in controversy during 2019. But with pending acquisitions still in the discussion, it could remain on several penny stocks watch lists in 2019.
Pot Stock To Watch #3 Emerald Health Therapeutics (EMHTF)
Taking a look at another marijuana penny stock that recorded substantial gains: Emerald Health Therapeutics (EMH) (EMHTF Report). The company entered into a cannabis-growing joint venture, Pure Sunfarms. This was with another popular pot stock, Village Farms Inc. (VFF). Village Farms reported that production from its joint venture has been excellent and it expects Pure Sunfarms to continue to contribute towards the growth of the company.
The news has helped give Emerald Health stock a boost this week. Shares rose by as much as 24% from the Tuesday opening bell to its high of the day on Wednesday at $1.77. Like other marijuana stocks on Wednesday, Emerald stock has consolidated a bit. But continued progress from deals like this could be key to pay attention to as time goes on.
Marijuana Penny Stocks To Watch #4 CV Sciences (CVSI)
Over the past few months, CV Sciences Inc (CVSI Report) has proven to be an interesting marijuana stock, to say the least. Last week it announced Q2 2019 financial results. And like we’ve discussed on the site before, penny stocks new can help and hurt. In the case of CV Sciences, it hurt (a lot).
In the second quarter, the company managed to grow revenue for the 14th consecutive quarter. It also saw gross margins improve to 70.9% from 70.8% in Q1. But the company missed street estimates on EPS and sales. This sent CVSI stock tumbling from $4.09 on August 6 to lows of $3.24 the following day.
The drop didn’t end either. Shares of this marijuana stock have tumbled to lows of $2.98 this month. However, since hitting those lows, CV Sciences has briefly recovered. The stock has risen by as much as 16% since hitting those lows. Will it recover or is this just another breather before falling further?
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