Marijuana News Today
Our first edition of “Marijuana News Today” in the new year comes in on a high, with marijuana penny stocks seeing strong gains after an industry-wide surge the day before.
Yesterday we saw marijuana stocks across the board jump by several percentage points. Today, many of the larger pot stocks have leveled off while marijuana penny stocks continue to gain.
Much of the industry’s fate in the coming days rests on the performance of the stock market at large. We saw that at the end of 2018, when the stock market’s roller-coaster performance sent marijuana stocks on a wild and unpredictable ride.
And that’s what we’ll be watching to start the new year: the overall performance of the stock market.
While marijuana news will still be the major driver of gains, it is my belief that the most pertinent predictor of losses will be the overall performance of the stock market.
With that in mind, investors need to consider whether they believe that a market slowdown is coming.
Several key factors do indicate a market slowdown, like the economic pullback of China, but it is still too early to shout “doom” from the rooftops.
Besides, the marijuana industry is far more resilient than many believe.
After all, at the end of 2018, Thailand became the first country in Southeast Asia to pass a marijuana legalization bill, permitting medical pot. (Source: “Thailand to Allow Medical Marijuana, a First in Southeast Asia,” The New York Times, December 26, 2018.)
While there are concerns over some of the particulars of the law (namely how business owners will be able to interact with the market, with several restrictions benefiting Thai nationals), this development is ultimately another great sign for the industry.
Marijuana legalization is spreading across the globe at an accelerating rate. And there’s no reason to expect that to slow down in 2019.
With that in mind, marijuana stocks are still poised to be strong long-term gainers, even if the near term is less certain.
One company that surprised me for much of 2018 was Cronos Group Inc (NASDAQ:CRON).
After starting the year behind competitors like Canopy Growth Corp (NYSE:CGC), the move to the Nasdaq proved to be a savvy play.
While the immediate aftermath of that switch was rocky and volatile, it paid off with big gains near the end of the year, with the Nasdaq proving to be the best home for marijuana stocks during the industry-wide correction that took place at the end of 2018.
Furthermore, CRON stock was able to finish 2018 on a stronger note than any other marijuana company, nabbing a deal with Altria Group Inc (NYSE:MO).
The makers of “Marlboro” cigarettes and one of the largest marijuana companies on the planet can now team up on a number of projects.
After all, Altria needs a new product to generate excitement and sales in the flagging cigarette industry, while Cronos will benefit from the expertise and resources that Altria can provide.
CRON stock is among the largest (borderline) marijuana penny stocks, and as such, is seeing a strong bounce today.
Cronos stock jumped three percent today, and over the past five days it saw its value rise by 12%.
Cronos continues to impress in the new year, and I have high hopes for the company.
While I was initially not all that sold on the future of Cronos versus its competitors, the company’s new partnership with Altria and its presence on the Nasdaq have me singing a different tune these days. Expect big things from CRON stock.
While Cronos is certainly having a good few days, Hexo Corp (OTCMKTS:HYYDF, TSE:HEXO) is one of the top performers among weed stocks over the past week.
HYYDF stock leapt nearly three percent in early-morning trading today, and it finds itself with a 20% gain over the past five days.
Hexo stock remains one of my favorite marijuana penny stocks.
One of the few companies to be considered undervalued following the hype that surged through the legal marijuana industry over the past few years, Hexo has a lot of room for growth.
And while CRON stock is nearly out of the marijuana penny stock range, at about $4.00, HYYDF stock is very much a marijuana penny stock, meaning that stronger gains are more likely to sprout—even if it means that the risk is higher as well.
A final note when looking at Hexo stock is the company’s eventual move to the New York Stock Exchange. While no date has been given, the company is planning to make the jump sooner rather than later.
While these sorts of transitions have become commonplace as of late in the marijuana industry, it will still open up one of the best stocks in the sector to a whole new set of investors.
But the overall best performer today (and over the past week) has to be OrganiGram Holdings Inc (OTCMKTS:OGRMF, CVE:OGI).
Much like HYYDF stock, OGRMF stock is still considered undervalued. It remains a true marijuana penny stock, with a $4.41 price as of this writing.
Where the two stocks diverge, however, is where they are in their respective stages of development.
Hexo, after all, has already signed a major partnership with “Big Alcohol” and has long-term supply deals bolstering its value.
OrganiGram, meanwhile, has supply deals (though not as impressive as Hexo’s, I’d argue), but it has yet to score a major partnership.
And this is a good thing.
Why? It’s only a matter of time before some big company chooses to invest in OrganiGram stock (one of the best buys in the marijuana stock market), leaving the door open for huge gains.
In the meantime, OGRMF stock has skyrocketed over the past five days (up 35%), with another five percent gain rolling in this morning.
Marijuana penny stocks, it would appear, are going to be king in early 2019.
CRON, HYYDF, and OGRMF Stock Performances
The performances of CRON stock (black line), HYYDF stock (blue line), and OGRMF stock (red line) over the past week are seen on the chart below:
Chart courtesy of StockCharts.com
It should come as no surprise that the three marijuana penny stocks discussed above are doing so well—or at least not to those who have been following my writing.
I’ve long touted HYYDF stock and OGRMF stock as being among my favorite marijuana picks, with CRON stock convincing me of its merits over the course of the last several months.
With that in mind, I believe that both short-term and long-term traders can have great success with these three stocks.