Marijuana News Today
The marijuana news today has us returning to the old days of the legal cannabis industry, the days of cheap pot stocks with the potential to double in value in the near future and marijuana initial public offerings (IPOs) that could shake up the sector.
It’s no secret that the past few months have not been kind to the marijuana industry (or the stock market more broadly).
Across the board, stocks have been taking huge hits, with 2018 being one of the most volatile years in a long while.
All that being said, a lot of value has been wiped out in the past several months. But that has left many pot stocks at bargain prices, so savvy investors may be able to take advantage of another marijuana stock run that could rise from the ashes of the recent downturn.
Much like a forest fire that spreads, only to allow new growth to crop up in its wake, the stock market downturn has left many marijuana stocks burned.
Few have been as badly affected as the premier marijuana penny stocks. That is, the marijuana penny stocks that are listed at low prices but have the credentials to be top players.
Here’s why these stocks are so damn exciting for 2019.
First, they were cheap to begin with (thus the “marijuana penny stock” label), but now they’re available at downright fire-sale prices. That will encourage many investors to enter the market and see huge returns without having to buy near-triple-digit stocks.
Due to their low prices and small sizes, these stocks have a much better chance of doubling or even tripling their value in the years to come. That’s the basic nature of penny stocks: high volatility and high potential.
After all, it’s easier to turn a $4.00 stock into an $8.00 stock than it is to turn a $200.00 stock into a $400.00 one.
Most importantly for weed penny stocks, they are undervalued relative to their competitors. In a business where charges of overvaluation are cast almost daily, that’s a huge advantage and could propel these stocks to huge gains in 2019.
One weed penny stock that has been doing very well in the marijuana news today is Hexo Corp (OTCMKTS:HYYDF, TSE:HEXO).
HYYDF stock climbed by over three percent in early-morning trading today, although it has had tough times over the past few months, losing tons of value.
Over the past several months, Hexo stock has lost nearly all its gains made in 2018, breaking about even on the year. Over the past five days, it has lost about four percent of its value.
But all that doesn’t change what makes Hexo stock so exciting.
First, the price is right—about $3.25 as of this morning—making it a steal, considering all that it has going for it.
Second, Hexo currently has supply deals across Canada, with a very lucrative long-term partnership with the Quebec government to supply one of Canada’s more populous provinces with weed.
Third, the company also teamed up this year with Molson Coors Brewing Co (NYSE:TAP) to work on cannabis-infused beverages.
Not only does this bode well for the future of Hexo stock, but it allows the possibility of reinvestment in the future from Molson, which would send the stock soaring.
And the most recent boon for Hexo comes from its attempt to list on the New York Stock Exchange. (Source: “HEXO Corp, licensed cannabis company, delivers on commitment to seek a listing on the NYSE,” GlobeNewsWire, December 21, 2018.)
While this kind of move doesn’t have the same heft that it would have earlier in 2018, it’s still a strong play that will open the company up to a bevy of new investors who will be all too ready to buy up a smaller company that has long been considered undervalued.
All this combines to make HYYDF stock one of the more intriguing marijuana penny stocks available.
Another very exciting weed penny stock is OrganiGram Holdings Inc (OTCMKTS:OGRMF, CVE:OGI)
OGRMF stock outperformed even Hexo stock in the marijuana news today, jumping by eight percent in early-morning trading.
While the past few months have been hard on OrganiGram (like many other pot stocks), the company still has plenty of room to grow.
Unlike most other pot stocks, OGRMF has yet to have a massive surge in value.
While it has made strong and sustained gains here and there, it hasn’t seen 30% or 40% jumps with the frequency of its competitors.
That’s a good thing though. It means there’s a good chance that OrganiGram stock could experience that kind of surge in the future.
It means that OGRMF stock—which has long been one of the most undervalued stocks in the marijuana sector—could rise high on the back of good news like a new supply agreement or a big investment from an outside company.
HYYDF and OGRMF Stock Performances
The performances of HYYDF stock (black line) and OGRMF stock (blue line) over the past week are seen on the chart below:
Chart courtesy of StockCharts.com
The marijuana news today shows us the possibility of marijuana penny stocks surging in 2019.
What this means to me is that, for those investors who want to see the biggest gains and aren’t afraid of a little risk, the best picks in the marijuana industry are weed penny stocks.