Penny stock investments require the homework from the end of investors before making any move. There are many companies trading in the OTC markets having a good scope and marijuana stocks are in trend with the legalization of cannabis in various parts of the US and Canada on the whole.
Just because a cannabis company is trading on the OTC markets doesn’t correspond to the success of investors by making an investment in those stocks. There are some good names in the OTC markets which will bring you towards gaining the higher returns over your investments. Apart from the OTC segment, there are many new companies listed on NASDAQ, NYSE or TSX which are from marijuana background and can bring you towards cannabinoid-related stocks. The companies having FDA approvals and positive financial stats usually get better scopes for the investments. You can invest in various segments related to penny stocks related to marijuana in any way. There are different sub-categories for which the investments in marijuana stocks could be considered:
CULTIVATION/ GROWERS/ OPERATIONAL INVESTMENTS
You can invest in the growers termed as ‘plant-touching’ companies. It would be wise to invest in the companies making an investment in the medical marijuana stream and having a strict business linked with medical usage of marijuana. The reason for this is that there is a better scope for marijuana investors in the medical stream and the majority of the US states are legalized for using marijuana for medical purposes.
Some common names in the medical marijuana penny stocks are:
- Canopy Growth Corporation (CGC)
This name is special as the company is the first Canadian marijuana company. It is the largest publicly-traded weed company having an operation in medical and recreational streams. The company has reported a revenue of Canadian $77.9 million. Constellation Brands (the Beverage giant) attained a stake of 9.9% in Canopy Growth in October 2017. This deal gave a positive response to the new product lines with cannabis-infused beverages.
- Aurora Cannabis Inc. (ACB)
This company has acquired MedReleaf in March 2019 and it is the world’s largest marijuana deal worth $250M. The company is expected to produce jointly over 570,000 kg per year of cannabis with its 9 facilities in Canada and 2 in Denmark. The company made a debut on TSX in Oct 2016 and trades even on NYSE (United States).
- Cronos Group Inc. (CRON)
Cronos Group Inc. is a special stock as it is the first pot stock in NASDAQ. The company is a Toronto-based cultivator in medical marijuana stream. It serves the international markets and ships the products to Germany, begins the joint venture in Australia and building the facility in Israel. The company’s entry into the US would be highly beneficial and the legalization of cannabis in various US states is expected to make a great move. The company’s revenue in the previous year was $7.3 million.
- GW Pharmaceuticals (GWPH)
FDA approved the first marijuana-driven drug of this UK based company on June 25, 2018. The drug is named Epidiolex and is associated with the treatment of Lennox-Gastaut Syndrome, Dravet Syndrome and various parts of epilepsy. The company is also listed on NASDAQ as ADR (American Depository Receipt).
- Terra Tech Corporation (TRTC)
The company is an agricultural group having its major operations in the production and marketing of medical marijuana products. The products of the company work under the brand name Edible Gardens and it even operates under the retail medical marijuana stores with the brand name Blum. The company has 2 large cultivation facilities in Nevada and also has the Blum dispensaries.
- AbbVie (ABBV)
AbbVie is a pharmaceutical company promoting cannabis-based drug on the market. The company helps in alleviating nausea after chemotherapy for cancer patients.
The investments are done in different companies making use of the plant for the medical applications. Two examples in this range are:
- Cara Therapeutics (CARA)
This clinical-stage biotechnology company works for the development of drugs for treating acute and chronic pain and pruritus. This product pipeline includes cannabinoid drugs under pre-clinical testing phase and gets a lot of movements based on the marijuana stock usage and legalization in the various US states.
- Axim Biotechnologies (AXIM)
This biotech company is presently working on 16+ drugs on various preclinical and Phase 1 & 2 stages. The drugs aim at making treatments for different medical issues such as inflammatory bowel disease, opioid addiction, dry eyes, and smoking cessation.
ANCILLARY BUSINESS INVESTMENTS
The booming marijuana industry requires the services of the wide range for work on the growing and packaging of the products including cannabis for anyway. Some examples are:
- GrowGeneration Corporation (GRWG)
The company works for organic gardening of the stores across 17 locations in the six states. The company generated a revenue of $29M in 2018 and the expected sales are $84.6 million by 2020.
- The Scotts Miracle-Gro Company (SMG)
This company pushes into the cannabis industry through hydroponics. The company wanted to invest in hydroponics for about half a billion dollars. The acquisition with $450 million for Sunlight Supply Inc. was a great move by the company.
- KushCo Holdings (KSHB)
The company was founded in 2010 and it provides packaging solutions for branding the services to the marijuana sector. The company has made a revenue of over $52 million which was a huge jump from the previous year’s business.
MARIJUANA BUSINESS SERVICE STOCKS
The companies providing real estate to office needs cater to the marijuana industry in many ways. Some of the examples of this category are:
- General Cannabis Corporation (CANN)
This company gives real estate, consultation, business, and security services to the marijuana-related industry. The headquarters are based in Denver.
- Innovative Industrial Properties Inc. (IIPR)
This company owns various properties in New York, California, Arizona, Minnesota, Pennsylvania, and Maryland. The company attained high revenues by giving its accommodation for various cannabis companies.
Cannabis Sin Stocks
With the growing popularity of cannabis stocks, there have been many tobacco and alcohol companies creeping into the cannabis stock industry to give a positive impact on the sales. The companies have become ready to include marijuana into their products.
- Constellation Brands (STZ)
The companies investing $190M to buy its stake in Canopy Growth for production of the new cannabis-infused non-alcoholic beverages. It has been a success and 2019 is expected to be a great year for the STZ stocks.
- Heineken NV (HEINY)
The latest offering of the company in THC and CBD-infused sparkling water has been a great move for the company. The company has acquired Lagunitas which has tied up with the medical marijuana company CannaCraft for working through medical marijuana segment.
- Molson Coors Brewing Company (TAP)
Molson Coors has a positive move towards the legalized status of pot over its business. The company made SEC filing list for legal marijuana with the emergence of legal cannabis in US states and Canada. Molson made a deal with the cannabis company ‘The Hydrotherapy Corporation’ in October 2018 for development of cannabis-infused beverages for the Canadian market.