Investing in penny stocks can be a tricky business, and cannabis penny stocks are even trickier given the emerging nature of the industry.
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. That's where we come in with our pick of some cannabis penny stocks that could have a promising future.
Codebase Ventures
Codebase Ventures Inc (CSE:CODE) (OTCQB:BKLLF) is a bit of an outlier in the cannabis sector in that it's not really a cannabis company, more of an investment firm making tentative ventures into the sector. Just this morning, the company announced a deal to acquire 45 acres of certified organic land in New York for $125,000 USD with the intention of growing hemp for CBD extraction purposes.
“We see this farm as a hub for the Company on the East Coast, beginning with production and extraction in partnership with other companies and the potential development of our own organic hemp and hemp-derived CBD brands,” Code Cannabis Investments CEO Zach Stadnyk said in a statement. There are big expectations afoot for the CBD market, with many analysts believing it could be worth $20 billion USD by 2024, which makes cannabis penny stocks like this all the more attractive.
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Codebase Ventures shares are valued at just $0.05, which is actually up 12.5%, so maybe now is a good time to keep an eye on this penny stock before the CBD market really explodes.
Namaste Technologies
Namaste Technologies Inc (TSXV:N) (OTCQB:NXTTF) is yet another cannabis penny stock that has suffered as a result of an internal scandal. In February, the company dismissed CEO Sean Dollinger after it emerged he had engaged in securities fraud. Namaste stock crashed nearly 90% in light of the allegations and is currently valued at $0.44. However, the company appointed interim CEO Meni Morim to the role on a permanent basis yesterday and it would appear that the ship has been steadied somewhat.
Namaste stock charged up 16% following the appointment as investors clearly feel hopeful a corner has been turned for Namaste Technologies that has big aspirations to be "the Amazon of cannabis." If these aspirations are realized, then $0.44 looks like a steal right now.
What cannabis penny stocks are on your radar?
Featured image: DepositPhotos © volodymyrbondarenkosound
