Investing in penny stocks can be a hugely rewarding gamble, and cannabis stocks even more so, given the huge interest in what’s still a young market.
Often, the best time to buy penny stocks is during a lull, and while the cannabis industry looks to be recovering from its summer slump, pot stocks are down across the board today, and so it might be a good time to pick up a bargain. In a young, volatile market such as the cannabis one, it can be difficult to forecast too far ahead, and it’s definitely not something to jump into without prior research. Thankfully, we’ve done some of the leg work for you. Let’s take a look.
HEXO Corp (TSX:HEXO) (NYSE:HEXO) is one company whose penny stock status might be a little unjustified. While HEXO has been performing moderately through 2019, its share price was heavily impacted by the broader struggles of the market. Its Q3 revenue of $13 million USD undershot analyst expectations by about $1 million USD, which led to a sharp decline in HEXO stock.
However, 2020 looks set to be much brighter for this penny stock as the company’s partnership with alcohol giant Molson Coors Brewing (NYSE:TAP) prepares to take advantage of the cannabis-infused beverages market, brought about by legalization 2.0. Through this venture, known as Truss, the company expects to grab a sizeable portion of the market for years to come and turn a profit next year. HEXO stock is currently valued at just about $4.00 USD.
OrganiGram Holdings Inc (TSX:OGI) (NASDAQ:OGI) is one marijuana penny stock that looks to be going from strength to strength recently, and with some really positive plans in the pipeline, it probably won’t merit its penny stock label for too much longer. OrganiGram Holdings looks set to be one of the leading producers of alternative cannabis products, such as its range of infused chocolates in partnership with Canada’s Smartest Kitchen, and a line of infused beverages, both of which will come to market early next year.
Additionally, OrganiGram’s three-tiered indoor growing system is one of the most cost-efficient in the industry and should have a positive effect on the company’s balance sheet come earnings time. Having just received approval for 17 additional growing rooms, this penny stock could be one of the biggest gainers in 2020.
So that’s our cannabis penny stock picks heading into October—what do you think?
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