Have you ever bought a lottery ticket or have placed any bets on the casino table? If yes, then you are well aware of the consequences of taking a risk. However, some risks are worth taking because of the huge payoffs. Penny assets are the riskiest assets that you can consider investing in. You might lose the money you invest, or you may win twice the amount you had invested.
Some 30 years back, people couldn’t even think of investing in a company that traded in marijuana. Today, marijuana stocks are considered as one of the major exchange forms. With the rapidly increasing interest in marijuana stocks, people are also considering investing in penny stocks.
At times, they trade for only a few dollars and at times even less than a dollar. They are quite cheap to invest in. However, they have great potential to grow in the future. They can certainly be a bit risky. However, they will surely pay off in the future. What matters is how you diversify the risk factors. However, before going forward, let us first understand what penny stocks are.
What Are Penny Stocks?
Penny stocks are also known as the companies that are still in their early stage of growth. Even though legalized and medical forms of cannabis have been in the market for almost years now, penny stocks are still quite young in the industry. Also, the fact that they are not legal federations registered in the U.S. shows that there is still enough room for their growth.
With Joe Biden being elected as the 46th President of America, the focus has again shifted to marijuana stocks. While on the campaign trail, the new Vice President has emphasized the importance of decriminalization of cannabis and marijuana. She stated that her party is committed to decriminalize marijuana and expunge the records of the individuals who have been convicted for marijuana expenses. Due to the criminalization of marijuana, the black people who are getting convicted for drug abuse are losing their jobs and access to basic benefits. She is sympathetic to their cause.
Are They Worth Investing In 2024?
The cannabis market is gradually growing, even beyond America. Although it is banned in several countries, it is legalized in some of the major economies. The future of Cannabis legalization is bright under the Biden administration. Also, the Cannabis sector will play a big role in the retail renaissance of 2024.
As of 2024, in October, the stock was worth $0.14, and in 2024, the price has shot up by almost $0.025. Although today Cannabis is quite undervalued, some penny stocks are worth investing in at these levels. Back in October 2018, the price had shot by $5.38. The probability of the bull market to experience another surge shortly is quite high. The Cannabis Industry, at this point, is quite weak. However, there still exist a few bright points.
New Life For Marijuana Penny Stocks?
The result of a vote on the More Act has added fuel to the fire. Its positive results will result in the legalization of marijuana at a federal level. However, the vote was put on hold because of more important issues at hand, such as the new stimulus plans and the presidential election. People who thought that the Act fought an uphill battle because of the Senate’s makeup are now speculating the opposite.
With this industry’s dynamic growth, it is the right time to start investing in penny stocks. Below mentioned are the 3 stocks that traders must follow closely in 2024.
- Hexo Corp.
- Harvest Health & Recreation
- Sundial Growers Inc.
Hexo Corporation
It is one of the leading penny stocks to look out for. Among the various cannabis companies, Hexo Corporation has always led the race. Since November 2024, the stock price of HEXO has significantly increased. The root cause behind this positive increase in the stocks is the legalization of the use of cannabis and due to the company’s significant progress. In the last few years of 2024, Hexo has achieved many key milestones, and the number is believed to increase in 2024.
One of the recent milestones came in the form of a patent named “Industrial Scale Processing Of Cannabis.” The company was granted this patent just a few weeks before releasing the fiscal Q1, 2024 reports, which have been one of the traders’ high points.
Harvest Health & Recreation
Before the commencement of the next legalization event in America, companies operating within the country will be on a clear focus. The only disadvantage is that numerous U.S. based companies dealing with cannabis are listed on the OTC. Also, the companies that use Webull or even Robinhood will not gain the required exposure. As a result, Canadian companies are developing a stronger momentum in this industry.
There are numerous traders available who wish to gain the needed exposure. However, NYSE and NASDAQ are the only stocks available to them. Also, they are Canadian Penny Stocks.
Sundial Growers Inc.
It is one of the leading companies that people should consider investing in. The price of this stock has always remained high, and the stock has further upscaled in a short span of time. The stocks have moved up from $0.48 to $0.79 since the end of 2024.
The stock stemmed from the company’s debt structure, and you can call it a concern, uncertainty, skepticism, or anything else. The company handled the communications in the best way possible with the market. For example, it announced that the company eliminated a few specific exchangeable notes. It means the owner of Sundial Senior who secured the second lien notes has modified them.
Final Word
The market of weed penny stocks has experienced some great hikes in recent years. Also, it is believed to grow further in the upcoming years. For more information on trading in this field, check https://weedprofitsystemapp.com. Traders are believed to reap some good benefits from these investments in 2024.