Cannabis stocks have been a big talking point in Wall Street over the past few years.
Regardless of the uncertain times we’re living in right now, the cannabis industry still has the potential to grow worldwide sales to $50 billion (or more) on an annual basis by 2030.
Many states in the US and provinces in Canada have legalized not only the medical use of marijuana, but also for recreational use.
In this article: we’ll walk you through some of the best marijuana penny stocks on the market today.
How to Identify Cannabis Stocks with Dividend Returns Potential
In the United States, the Farm bill was passed in 2018 legalizing industrial Hemp.
This opened up the stock market for the public to invest in several marijuana based stocks.
If you are wondering whether you are too late to jump in on the bandwagon or if it makes sense as a long term investment, we think you’re right on time.
As more research is compiled on the medical effects of Marijuana and Hemp products like CBD (cannabidiol), we start to see more companies expanding their sales and consulting services toward medical Marijuana.
It might be intimidating to be looking at all sorts of data for CBD uses and THC percentages, but it does help to know more about the processing of such products to make sure you are investing in these for the right reasons and the right returns.
Furthermore, especially if you are taking into account that this is just the beginning of the boom in the industry.
While Hemp stock prices have been more steady, this might be because Hemp as a plant has a much higher percentage of CBD and less THC than Marijuana.
Some states haven’t fully legalized the use of CBD or any Marijuana products, but more are starting to, like Virginia. And while some have approved the use of CBD for medicinal use, they haven’t approved it recreationally.
Texas has made even trace amounts of THC illegal, which will make it hard for companies to sell and move their product.
But as aforementioned, the industry is in its infancy, there are many ups and downs to come. Hemp and CBD stocks are expected to fall through as new laws arise or even soar with new states legalizing Marijuana and/or CBD.
While it is also a good idea to keep on checking on the laws regarding legalization, I think the entire country will be more open to the possibility of treating CBD as medical experts treat opioids in hospitals.
As a rule of thumb: keep an eye out for where the company is based out of and the laws in that state regarding Marijuana.
Within the first few years of the Marijuana boom, we saw a lot of clinics popping up like Starbucks selling doses of CBD or buds, and nowadays the most resilient ones have kept their customers and gained some new ones but it is not a novelty anymore.
Of course, there are companies selling purely recreational drugs but there are some who are at the forefront of medicinal Marijuana looking to expand its uses to more than alleviating migraines or helping you sleep.
Those are the companies you want to invest in, those companies are in it for the long run.
In many states, you can already own up to 4 plants for your own consumption, and that’s game-changing. But then again, recreational cannabis has always been a gigantic industry.
The companies that have expanded into the Marijuana Industry are usually ones with previous experience in the medical field or have experience providing services to drug companies. There is a lot to learn still in this baby market, but overall we cannot deny the boom it has experienced with legalization.
Cannabis Trading Activity in 2020
The market is a bit chaotic right now. With everything related to COVID-19 going on, it can be really hard to predict what’s next.
With stock nosedives, circuit breakers, and both the Dow, S&P 500, and Nasdaq reaching near all time lows not seen since the Great Recession of 2008, we’ve got it coming.
If you are in for the long run and have the means to withstand it, we definitely recommend checking the stocks out below, especially considering we’re heading into another recession.
There are a few little pleasures in life that are recession-proof and I would definitely say Marijuana is a form of escapism. And escapism is always on the rise. CBD has many consumers, these consumers are not only using it for medical purposes but recreationally.
When it comes to buying stocks there are a few safety precautions to take, and this doesn’t change for any kind of investment. Make sure you have done the research on the history of the company, do not invest in firms that haven’t or just don’t file with the SEC and make sure if you are investing in CBD stocks or Hemp stocks that these companies are experienced in what they are doing.
Most cannabis stocks ( CBD or Hemp) are Penny stocks so below is a list and the reasons why we think they are good options to invest in:
Let’s dive right into the marijuana penny stocks list:
Top 10 Best Pot Stocks
These are some of the best pot companies with cheap shares trading right now that you can buy. Many of these are listed on the New York Stock Exchange as of 04/03/2020.
Anavex Life Sciences Corp. (AVXL) - This is a fairly young biopharmaceutical company, specializing in the development of drugs to treat neurodegenerative and neurodevelopmental diseases. They have had success with a certain drug, Anavex 2-73, on Alzheimer’s patients and they have had some successful tests with cannabis on the sigma-1 receptor.
Canopy Growth Corp. (CGC)- I am still a bit uneasy about this one. I included it because I do think they are doing their best in terms of keeping the company healthy but I feel the way they fired their employees wasn’t very ethical. They did just make an arrangement for an 80million loan with TerrAscend, so someone has faith in them. But I will hold out on buying for a bit, wait another week or two until the recession really hits and then buy conservatively.
American Cannabis Company (AMMJ)- Touting itself as a solution to all your growing cannabis needs, this company presents a very elegant cover. Right now everything is up and down but I do believe this be a good steady investment since they have a solid base.
InMed Pharmaceuticals (IMLFF)- Pharmaceutical companies are usually a good way thing to invest in. This one, in particular, is spending quite a bit of money on research. And as previously stated, there will once be a future where cannabis will be more freely used to treat pain and other ailments.
Auxly Cannabis Group (CBWTF)- This is another Canadian company based out of Montreal. It’s a grow op. They just secured a loan that will help them expand in the Q2 of 2020. And they are exploring more derivatives, such as edibles and natural health products.
4Front Ventures Corp. (FFNTF) and Cannex Captial Holdings (CSE- CNNX) - I included both because Cannex has acquired 4Front. Leasing cultivation growing facilities is also a good investment. And this acquisition means more growth!
Alefia Health (ALEAF)- So many Canadian companies! While this one is only trading in the OTC I have included it because their history shows resilience. They are both growers and researchers, so that gives them flexibility.
MariMed Inc. (MRMD)- So this is a company that wasn’t doing so well in the beginning (more downs than ups). But they are one of the few companies focusing on both Hemp and Cannabis at the same time.
Plus Products Inc. (PLPRF)- Edibles are not really something I would consider investing in, but then again I am not one for convenience. Nonetheless, they are thriving focusing on gummies laced with CBD.
ScottsMiracle-Gro (SMG)- The name says it all doesn’t it? In the US it is such a household name and while they themselves don´t actively own any greenhouses or have made any deals with any cannabis companies, they stand committed to the legalization and the growth of the cannabis industry. So they are not really a Marijuana Penny Stock per se but they are definitely contributing to the growth of it.
Aurora Cannabis (ACB)- Last but not least this is a company we have been hearing about a lot from in the news lately. It had been struggling and it became a penny stock and it finally did, many people are wondering if it will survive. To tell you the truth I am not sure. If I had the extra money I would totally invest in them, because the changes the gotta make within the company don’t seem insurmountable. But then again I would have to be completely ready to lose my investment.
Access Power Inc (ACCR)- This one is the iffiest of them, on the one hand, they are a small company with a small float so your dividends could really skyrocket if they handle this crisis well but then investing is always about high-risk/high reward. There are too many conflicting narratives as to how well this company is doing.
We hope this has helped you make a decision about whether to invest in Marijuana penny stocks.
Just remember, nothing lasts forever and much less the crazy over something like legalizing Marijuana.