3 Cannabis Penny Stocks to Watch
TILT Holdings. Aleafia Health. And Auxly Cannabis Group. These are three of cannabis penny stocks you should watch for the month.
Background
So far this year, cannabis stocks have been the new hot. Riding on the waves of increasingly favorable legalization, they have been able to post generally positive stock market performances. Although most of those cannabis companies are not profitable yet, their prospects for stupendous growth cannot be denied.
In fact, so huge is the prospect for the overall cannabis industry that the market for hemp-based CBD products alone is projected to reach at least $7.5 billion by 2024, with many leading research firms even putting their estimates beyond the $20 billion mark in expected sales. And with Aphria becoming the first Canadian cannabis company to report a profit in its latest quarterly results, the potential for the industry is getting even real.
Despite the month opening on a bearish run for most cannabis stocks, positive earnings should help improve performance in the short term. Thus, it is such an exciting time to get onto the cannabis floor. And with penny stocks, because of their low prices, it cannot get easier. Hence, here are three cannabis penny stocks you should watch for the rest of the month.
- TILT Holdings (CSE: TILT)
Although TILT Holdings (CSE: TILT) has been in the news for bad reasons, the sparkle of this potential gem must be accepted. Recently, its share price surged by roughly 14%, and it will most likely do better as more cannabis stocks ride on the back of an overall positive investors’ sentiment.
But for TILT, there could be a concern. Growth recorded may not live up to the industry average, with the company itself having had to retrace its growth projection from over 300% it had earlier forecasted to approximately 2% now.
©TradingView. August 5, 2019.
However, performance might end up being better if the company manages to stay away from its usual regulatory woes.
- Aleafia Health (TSX: ALEF)
- For August, any list of marijuana stocks to watch will not be complete if Aleafia Health does not make it. All thanks to the contract, a contract that could be the largest order in its glorious but short history, it recently secured through its wholly-owned Emblem Cannabis Corporation.
©TradingView. August 5, 2019.
The deal, which would have the company becoming the major supplier to a Canadian provincial government, would see it netting over $1 million in revenue. Consequently, the company is expected to continue its positive runs, provided its bubbles do not end up being burst by unforeseen industry forces.
If your portfolio is a Cannabis-oriented one, then you should do it a lot of favour by making a strong addition in Auxly to it. With its focus on the derivative cannabis product space, the company is well poised to become a major player in this high-profit margin segment of the cannabis business.
©TradingView. August 5, 2019.
As these products are set to start hitting the shelves in December and with its latest partnership with the U.K tobacco giant, Imperial Brands, Auxly’s books are expected to smile, with sales already projected to increase by over 3,000% in 2020.
