Cannabis Penny Stocks to Watch: Elixinol and WeedMD

penny stocks

Penny stocks can be a polarizing subject in the world of investment. Some investors jump at the chance of finding the next stock that might flip huge gains, while others just don't have the appetite for risk that comes with penny stocks. Cannabis penny stocks are perhaps some of the most volatile, given the emerging and unsteady nature of the industry, but given the huge potential of the market, here are some low priced pot stocks that might be worth keeping tabs on.

Elixinol Global

Elixinol Global Limited (OTCQX:ELLXF) is a leading manufacturer of high-quality hemp oil extracts that focuses on CBD-infused skincare and dietary supplements. With the demand for hemp-derived products soaring and showing no signs of slowing, this could be one cannabis penny stock with a big future. Elixinol Global is also making moves into the CBD pet product sector, which is expected to be valued at $125 million USD by 2022. In April, the company purchased a 25% share in Altmeds LLC, which has about a 65% market share for pet products.

Elixinol stock has had a bit of a bumpy year as is to be expected with any penny stock, particularly in the cannabis market. Having made gains of as much as 132% in the first few months of the year, investors have seen most of these gains wiped. However, given that the second wave of cannabis legalization arrives next month, Elixinol looks well-positioned to take advantage of increased demand for hemp oil extracts.

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WeedMD Inc (TSXV:WMD) (OTCQX:WDDMF) is a Canadian federally-licensed producer and distributor with considerably bigger aspirations than its penny stock status would suggest. Having posted a 140% revenue gain across the previous two quarters as a result of opening 10 newly-licensed 10,000 sq ft cultivation rooms alongside a 27-acre outdoor cultivation yield, WeedMD is going from strength to strength.

Despite the strong results, WeedMD stock has had its share of ups and downs as we approach the 12-month mark since cannabis legalization. Having made gains in excess of 110% earlier this year, the market's summer slump has seen this penny stock swing as much as 25% at times, which makes it a pretty volatile pot play. However, given recent quarterly results, and with the market set to be boosted by the second wave of legalization, this penny stock is definitely worth keeping an eye on.

So that's our cannabis penny stock picks for mid-September—what do you think?

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