WARNING: Market Shock Imminent

Join us on September 29 at 4 p.m. ET at the Market Shock 2022 event to find out what’s coming and how to profit.

Thu, September 29 at 4:00PM ET

7 Reddit Penny Stocks Ready To Get High on Cannabis

reddit penny stocks - 7 Reddit Penny Stocks Ready To Get High on Cannabis

Source: Shutterstock

When it comes to Reddit penny stocks, a lot of people seem to be getting high on their own supply. What else could explain the irrational run-ups in share prices of many of the smallest and least profitable cannabis companies that we’ve seen in recent months?

Stocks of obscure cannabis companies nobody has heard of have seen jumps of 300%, 400% and more as investors who frequent investing subreddits have bought shares at a manic pace. Naturally, the ride up is short and the stocks inevitably crash. But despite the volatility and head shaking among professionals on Wall Street, cannabis penny stocks remain a favorite of the Reddit crowd, and their pot passion shows no signs of cooling off.

Here we examine seven Reddit penny stocks ready to get high on cannabis.

  • Sundial Growers (NASDAQ:SNDL)
  • Medical Marijuana (OTCMKTS:MJNA)
  • Hexo (NYSE:HEXO)
  • Supreme Cannabis (OTCMKTS:SPRWF)
  • Tilray (NASDAQ:TLRY)
  • Cronos Group (NASDAQ:CRON)
  • High Tide (OTCMKTS:HITIF)

Reddit Penny Stocks: Sundial Growers (SNDL)

marijuana in storage

Source: Shutterstock

Canadian cannabis company Sundial Growers has been a favorite among Reddit penny stocks all year. Retail investors who frequent the Reddit commentary boards pushed SNDL stock up to an all-time high of $3.96 in February. The share price has since crashed back down to its current level of 77 cents. But investors haven’t completely abandoned Sundial Growers. The stock continues to get pushed up above $1.50 a share for brief periods before tumbling backwards.

All this volatility has been hard on Sundial Growers shareholders and its management team. The company continues to be threatened with delisting by the Nasdaq stock exchange each time its share price falls below $1.  The topsy-turvy share price also obscures the fact that Sundial Growers is doing some worthwhile things in the cannabis space right now, including pushing into the fast-growing edible marijuana products segment.

Medical Marijuana (MJNA)

marijuana stocks Hand gently holding rich soil for his marijuana plants

Source: Jetacom Autofocus / Shutterstock.com

Poway, California-based Medical Marijuana largely focuses on hemp products that are derived from marijuana plants. Specifically, the company wants to use hemp to create a variety of health and wellness products for everyday use. Medical Marijuana was one of the first companies to market cannabidiol as a wellness product. Today, Medical Marijuana operates a number of subsidiaries that include “Real Scientific Hemp Oil” and “Dixie Botanicals” among others.

With a market capitalization of just $55 million, Medical Marijuana is a small company. Its stock remains in the doldrums among penny stocks at just 4 cents. However, MJNA stock has been pumped up to all-time highs this year by cheering crowds of traders on Reddit. Between February 2 and 10, the stock vaulted around 460% higher to 17 cents from just 3 cents per share. Since then, the stock has slid downwards.

But, it wouldn’t take much to make the share price jump again.   

Hexo Corp (HEXO)

30 Marijuana Stocks to Buy as the Future Turns Green

Source: Shutterstock

Hexo is another cannabis company that is heavily focused on medical cannabis, including cannabis oils and dried flowers. Based in Canada, Hexo has been expanding into foreign markets like Europe and the Middle East, and has also been growing through acquisitions, buying competitor Zenabis Global for $235 million in a deal that will further expand its reach into Europe. Hexo did fail an attempt at entering the cannabis drink space, but the company doesn’t appear to have ruled out another run at that market in the future.

HEXO stock is performing reasonably well. Year-to-date, it is up 45% at $5.36 a share. It has also managed to climb above the $5 penny stock threshold. However, HEXO stock popped in February as Reddit-fueled investors grabbed shares of every marijuana company they could think of. Of course, the stock’s meteoric rise was short lived. However, Hexo continues to benefit from growing expectations around U.S. legalization of cannabis at state and federal levels.

Supreme Cannabis (SPRWF)

Image of marijuana being weighed on a scale

Source: Shutterstock

For investors with a really short time horizon, consider a position in Supreme Cannabis. The tiny marijuana company has seen its stock rise as much as 60% after it was announced that Canopy Growth (NASDAQ:CGC) is acquiring it for $435 million. Shares of the penny stock spiked on news of the deal, rising to a 52-week high of 48 cents a share. SPRWF stock has since retreated, and is super cheap at its current price of 30 cents.

The purchase of Supreme Cannabis will cement Canopy Growth’s position as the largest Canadian cannabis producer. Supreme Cannabis will also help broaden and diversify Canopy Growth’s products and brands.

Investors would be smart to purchase SPRWF stock before the Canopy Growth acquisition closes later this year.

Tilray (TLRY)

multiple jars of different sizes carrying marijuana

Source: Shutterstock

This Canadian cannabis producer isn’t a penny stock, but unfortunately it’s trending in that direction. After being throttled by Reddit investors earlier this year and pushed as high as $67 a share on February 10, TLRY stock has plummeted 75% and today trades at $16.65 a share. The slide since mid-February has been steady and persistent and shows no signs of stopping anytime soon. Last October, Tilray shares were trading under $5.

Whether Tilray stock will slip back into penny stock territory remains to be seen. But the squeeze Reddit investors put on TLRY stock a few months ago was clearly an aberration that drove the share price to unsustainable levels. Hopefully, Tilray shares will stabilize and begin to move higher once its $4 billion merger with Aphria (NASDAQ:APHA) is completed. Once the deal is finalized, Tilray will become one of the largest marijuana producers in the world.

Cronos Group (CRON)

Image of marijuana alongside three joints

Source: Shutterstock

Cronos Group is a pure cannabinoid company that has operations around the world, including Australia, Germany, Israel and Canada. In the U.S., the company primarily sells hemp supplements online. Elsewhere, Cronos Group sells cannabis products such as dried cannabis, pre-rolls and cannabis extracts that are marketed as wellness products. While Cronos’ earnings have been hit and miss, the company has managed to survive the global pandemic.

At $8.07 a share, CRON stock is up 16% so far in 2021. However, like the other stocks on this list, Cronos got squeezed to all-time highs earlier this year by retail investors who sent the share price to a peak of $15.83. Since falling back to earth, Cronos stock has stabilized and managed to remain above $8 a share since late March.

Like other cannabis companies, Cronos Group is betting on future growth from greater legalization of cannabis, as well as a maturing market for the recreational drug.

High Tide (HITIF)

marijuana stocks image of marijuana leaf on top of several one-hundred dollar bills, ACB stock

Source: Shutterstock

Canada-based High Tide is a different type of cannabis company. Rather than cultivating cannabis products, the company manufactures accessories used to smoke cannabis and sells them to both wholesale and retail clients. While a small company whose stock is worth just 50 cents, High Tide’s revenue in its most recent quarter was up 166% compared to a year earlier, which is an encouraging sign. High Tide is not yet profitable,  but is moving in the a positive direction.

Year-to-date, HITIF stock is up an impressive 140%. Traders of Reddit penny stocks seem to buy shares of this company in fits and starts. But apart from being squeezed by frenzied retail traders, there is reason to feel optimistic about High Tide. If the company’s sales and revenue continue at their current trajectory, profitability should come sooner rather than later. Plus, the company recently opened its first brick-and-mortar retail store in British Columbia, Canada.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia. 

Article printed from InvestorPlace Media, https://investorplace.com/2021/04/7-reddit-penny-stocks-ready-to-get-high-on-cannabis/.

©2022 InvestorPlace Media, LLC