Cannabis investors are making millions on the big pot stocks like Aurora Cannabis (ACB), Canopy Growth (CGC), and Cronos (CRON). Did you know that the penny pot stocks are bringing in cash for investors as well? Penny stock land is fraught with traps for investors. Companies trading with penny stocks tend to be more volatile and have less institutional investors. However, with the right stock, you can do quite well.
Kona Gold Solutions (KGKG)
Kona Gold Solutions doesn’t grow or sell marijuana. The company sells beverages infused with hemp seed oil and CBD. None of their products contain THC, which is the active ingredient in marijuana.
Over the past year, Kona Gold has experienced rapid expansion. It has been adding distributors from all around the country at a feverish pace. Currently, Kona Gold has distribution in nearly all 50 states.
Its price per share has also experienced phenomenal growth. Over the past six months, the price more than doubled for a time but has cooled down some since. It’s currently trading near the .09 range and is expected to rise when Kona Gold announces Q3 results. Q3 is a significant revenue time for beverage makers because of the summer heat.
Liberty Health Sciences (LHSIF)
Liberty Health Sciences is one of Florida’s leading providers of marijuana. It currently has 16 dispensaries online and is ranked as the state’s #2 seller of marijuana flower. That’s no small feat for a penny stock.
LHSIF was embroiled in some business problems with members of another pot company (Aphria -APHA-), and shares of both companies took a beating. Before the issues began, Liberty Health was consistently trading above a dollar. Since then, it has remained below the one dollar mark but has made a few valiant efforts to surpass it.
Like many of the other pot stocks out there, including the big boys, Liberty Health is consistently trading at or near its 52-week low of .26. It seems to have found its bottom, and the company is thriving in Florida post-scandal, and all of this makes Liberty a cannabis stock to take seriously.
Choom Holdings (CHOOF)
Choom has a presence in four provinces in Canada and enjoys a multi-million dollar investment from one of Canada’s biggest producers of pot, Aurora Cannabis. CHOOF is getting off the ground right now as Canadian legislators and regulators seek to find a proper framework for retail cannabis. The regulations are challenging for all Cannabis businesses in Canada, especially when you consider that each province and city has a say in how stores sell marijuana within their jurisdictions.
Regardless, Choom Holdings promises to be a safe play for investors. At the moment, the price is perfect for investors looking for penny pot profits. It’s near its 52-week low of .27, and so it might be near the end of its downtrend like many other pot stocks.
ELEV8 Brands INC (VATE)
Like Kona Gold, Elev8 is a producer and distributor of hemp and CBD infused products. In fact, Kona Gold owns millions of shares in Elev8 Brands. With the legalization of hemp in the Farm Bill, Elev8 has been actively expanding its products and presence throughout the United States. The success of Kona Gold has helped. Many investors in Kona Gold decided to invest in Elev8 after finding out that Kona has a big stake in the company.
Elev8 has seen its shares touch a high of .073 in the past year, but currently, the share price is near its 52-week low of .022. As with the other promising pot companies with low per-share prices, VATE shares are worth a serious look, especially since the revenue from summer sales is still rolling in.
Auxly Cannabis Group (CBWTF)
Auxly Cannabis Group does not produce cannabis. Instead, they offer lines of branded products that they distribute worldwide. They also are instrumental in making business happen in many areas outside of retail. Recently, they agreed to provide fiscal responsibility for the construction of a hemp farming co-op that will sell quality hemp and oil on the market.
The company’s share price has recently rallied from all-time lows. Some analysts called some of Auxly’s early investments risky, and others considered them hasty, especially in a developing industry like cannabis. Like most of the other post stocks, CBWTF fell to new lows (near .44), and the doubt surrounding its investments helped to keep it down there. However, it has regained some ground and is currently trading around .70. The rebound and its low price make it a cannabis stock to consider as an investment option seriously.
Serious investors should take a look at the five choices listed above. Although cannabis penny stocks are volatile, they can make savvy investors a sizable return on their investment.