Hemp stocks have been on my radar ever since 2014.
That’s the year that Hemp Inc. (OTCPK: HEMP) suffered one of the most textbook morning panics I’ve ever seen. My students and I were there to collect. We made $300,000 on the day.*
— Timothy Sykes (@timothysykes) February 6, 2014
This is one of the great things about this sector. It’s been overrun by speculation for the last decade. And speculation brings volume.
Volume, as my Trading Challenge students know, is important for penny stocks. If you don’t have volume, you can’t guarantee an easy exit from a position.
The second thing these stocks bring is the volatility rollercoaster, like we’ve seen with Hemp Inc.
Believe the hype and you’ll end up investing in a worthless stock … Hemp Inc. trades at less than a penny these days.
But if you take the time to learn their patterns, you’ll find some wild plays ahead.
(*We all like big numbers, but this kind of profit isn’t typical. Most traders lose money. All I can do is show you what I’ve done with my years of study and experience. Do your own due diligence and never risk more than you can afford to lose.)
Table of Contents
- 0.1 What Exactly Are Hemp Stocks?
- 0.2 What Are Hemp Penny Stocks?
- 1 Top 5 Hemp Stocks to Watch in 2023
- 1.1 Top 3 Hemp Stocks to Watch in 2023
- 1.2 2 Canadian Hemp Stocks Worth Watching
- 1.3 Frequently Asked Questions About Hemp Stocks
- 1.4 Conclusion: Should You Consider Trading Hemp Stocks?
What Exactly Are Hemp Stocks?
Hemp stocks are stocks in companies in and around the hemp industry.
Hemp is basically marijuana but without the part that gets you stoned. It has to have 0.3% THC or less. With the passage of the 2018 Farm Bill, it became legal in the U.S.
But even before this big shift, the market for hemp had been growing on pace with its most popular product, CBD.
Hemp is a versatile plant, historically used for everything from rope to birdseed. The Egyptian pyramids were built using hemp rope. A sixth-century French queen was buried in hemp cloth.
These days it’s used for much more. So this hot and cold market could yield some promising stocks. Let’s take a look…
First, there are stocks in hemp-farming operations. There’s a lot of overlap here between hemp stocks and marijuana stocks. Some of the biggest marijuana companies in the world are now growing hemp as the CBD market expands.
Aurora Cannabis Inc (NYSE: ACB) is one of the biggest names in this space.
Hemp CBD Stocks
If the FDA ever gets around to regulating CBD, we could see an explosion among these stocks.
For now, this category is ruled by Canadian hemp stocks and stocks on the OTC market. Cronos Group Inc. (NASDAQ: CRON) is one of the biggest stocks in this category.
Cronos is also a good example of cross-pollination with the tobacco sector. In 2018, it received $1.8 billion in investment capital from tobacco giant Altria Group Inc. (NYSE: MO).
Hemp Product Stocks
Other hemp product stocks are far less complicated than CBD stocks. The market isn’t waiting on the FDA to regulate non-supplement uses of the plant. A growing catalog of hemp products has been completely legal since 2018.
Hemp textile stocks are at the front of this movement. Companies like Levi Strauss & Co. (NYSE: LEVI) have been quick to adopt this sustainable product.
Companies across different sectors want in too. Want to invest in the hot home construction sector? Try hempcrete. That toilet paper panic we had earlier in the pandemic? There’s a hemp product for that.
What Are Hemp Penny Stocks?
Hemp penny stocks comprise the majority of hemp stocks. Remember: a penny stock is any stock that trades under $5 per share.
There are some big players in the sector. But most hemp stocks are fast movers with a LOT of volatility.
Investing advisors talk until they’re blue in the face about unstable market conditions. I learn to trade through any market.
With penny stocks, the only thing better than a volatile market is a volatile sector. Hemp has a lot of pretenders in the field. If you can see through the pumps, you can find some worthwhile plays.
Top 5 Hemp Stocks to Watch in 2023
- NASDAQ: CRON — Cronos Group, Inc. — The Listed Hemp Penny Stock
- OTCQX: GTBIF — Green Thumb Industries Inc. — The Hemp Penny Stock with Strong Fundamentals
- OTCQX: CRLBF — Cresco Labs Inc. — The Earnings Winner Hemp Penny Stock
- OTCPK: JUSHF — Jushi Holdings Inc. — The Earnings Loser Hemp Penny Stock
- NASDAQ: SNDL — SNDL Inc. — The Hemp Penny Stock Pondering U.S. Expansion
Top 3 Hemp Stocks to Watch in 2023
Cronos Group, Inc. (NASDAQ: CRON) — The Listed Hemp Penny Stock
My first 2023 hemp penny stock pick is Cronos Group, Inc. (NASDAQ: CRON).
There are two tickers on this list that you can trade with a Robinhood account.
They’re what’s known as ‘listed’ stocks.
Listed stocks usually have the advantage of more liquidity. More traders have access to them, and that ensures the ability to buy and sell shares at will.
I traditionally like to trade unlisted stocks, OTCs mainly. OTCs tend to have fewer eyes on them, which makes it easier to catch moves.
My point in telling you this …
If you want full access to all the opportunities I’m about to reveal, make sure you’ve got a broker that offers trading on the OTC market.
Robinhood isn’t going to cut it.
But in recent weeks I’ve started to pay more attention to Nasdaq and NYSE spikers (those are the listed markets). Here’s one of them…
CRON is a past spiker I’m watching as it meanders below $2.
The history of spiking is really important. Past spikers can spike again. Even though CRON has been in sell-off mode since February 2021…
It may only be a matter of time before the company announces news and the price spikes again.
Green Thumb Industries Inc. (OTCQX: GTBIF) — The Hemp Penny Stock with Strong Fundamentals
My second 2023 hemp penny stock pick is Green Thumb Industries Inc. (OTCQX: GTBIF).
This is the first of the unlisted stocks on my watchlist.
A lot of people think it’s more dangerous to trade an OTC stock like GTBIF.
The liquidity can be a little shoddy if you trade at the wrong times. Like if there’s no news, no volatility, and no reason for anyone to buy shares.
The OTC stocks on this list are an exception. They aren’t in the OTC category because they’re crappy stocks, they’re there because of the questionable legality of their business in the U.S.
We already know GTBIF can run.
The chart shows a spike between 2020 and 2021 that reached more than 860%.
I’ll be ready the next time this stock wakes up.
Cresco Labs Inc. (OTCQX: CRLBF) — The Earnings Winner Hemp Penny Stock
My third 2023 hemp penny stock pick is Cresco Labs Inc. (OTCQX: CRLBF).
I don’t trade unless there’s a reason for the price to push higher. It’s common sense. But a lot of people let their greed take the wheel.
That’s why I’m never surprised when they eventually land in the ditch.
A reason to spike is commonly referred to as a catalyst. Here are some examples …
- New business partnerships
- New contracts
- IPOs/SPAC mergers
- New business in a hot sector
- Earnings reports
The catalyst that CRLBF has been moving on is earnings…
The company announced quarterly financial reports on May 24 and the price spiked.
It was only 20% … a measly amount for runners in this niche. But right now the price is consolidating below recent highs.
That’s a sign that it could push further on this earnings news.
The great thing about trading penny stocks is the moves take a few days or weeks to fully play out. That means there are multiple days with quality trade opportunities.
Watch for CRLBF to break through resistance at $1.90.
2 Canadian Hemp Stocks Worth Watching
Jushi Holdings Inc. (OTCPK: JUSHF) — The Earnings Loser Hemp Penny Stock
My first Canadian hemp stock pick is Jushi Holdings Inc. (OTCPK: JUSHF).
There are times when stocks release quarterly earnings and the price barely moves.
Sometimes the stock price can fall if the report is bearish or the market expected something different.
That’s why it’s so important to wait for the chart to show us a trading opportunity.
That’s why I don’t buy shares and hold them while the company announces earnings. There’s no telling what the report will say, much less how the market will react.
Instead, I wait for a spike and then start to plan my entry based on the chart pattern.
JUSHF was a bit of a dud.
The company announced earnings on May 12 and the stock didn’t do much.
But the chart shows a solid history of running. That’s why it’s still on my watchlist.
The earnings report didn’t move the price. But it’s only a matter of time until we see a different catalyst get its turn…
SNDL Inc. (NASDAQ: SNDL) — The Hemp Penny Stock Pondering U.S. Expansion
My second Canadian hemp stock pick is SNDL Inc. (NASDAQ: SNDL).
If you want a perfect example of a Tim Sykes supernova, look at the SNDL spike in 2021.
It’s how I profited $5,250 from one trade (starting stake was $102,750).
There was a spike, a consolidation, and then an even bigger spike that pushed through the highs.
I included a video below of a more recent supernova for comparison …
All told, SNDL ran over 740% that year.
Since then, the chart’s been decently active and has managed a spike here and there. But something big is coming …
The Canadian company is attempting expansion into the U.S.
The news was announced on April 30, and around that time the price spiked over 50%.
Nothing’s set in stone yet, which means we’re still awaiting formal notice of the company’s expansion. And given the recent volatility, I think a press release like that could wake up this former supernova.
Frequently Asked Questions About Hemp Stocks
I get it — it’s confusing. Back in my day, people used to call marijuana ‘hemp.’ I’m learning this stuff, same as you.
Can You Invest in Hemp Stocks?
You’ve read this far and still don’t know? It’s no problem for traders … but it gets complicated for companies. A lot of hemp stocks are also pot stocks — U.S. pot stocks are only traded on OTC markets. The same goes for U.S. CBD stocks.
Who Is the Biggest Producer of Hemp?
China is considered the birthplace of hemp and still dominates the industrial hemp market.
Is Hemp Inc. a Stock Worth Trading?
Hemp Inc. (OTCPK: HEMP) has been counted out many times in the past. But now it’s nearing absolute zero. You want my Hemp Inc. stock predictions for the rest of 2023? I’d be very careful trading this stock.
Is Hemp Publicly Traded?
Hemp is a commodity, although one in its infancy. The market is exploding and prices vary from state to state. And unlike corn and sugar, there are few authoritative sources to determine its cost. This will likely change as hemp production continues to grow.
In the U.S., companies that produce pre-processed hemp can list on major exchanges. The same goes for Canada-based pot companies in the hemp market. U.S.-based CBD stocks are listed on OTC markets. In any case, check that your broker allows trades for the market you’re targeting.
Conclusion: Should You Consider Trading Hemp Stocks?
I’ll never tell you what to trade.
Instead, I want to help you learn to trust yourself. And you’ll only trust yourself when you’re worthy of that trust. You know what you know … and what you’re only faking.
I can show you setups that might come in handy. And I can show you my weekly watchlists to give you an idea of my process.
But what I really want for you is to be a self-sufficient trader. That means you know how to think for yourself in the markets. I want you to work your butt off and join the ranks of my top students. People like the 31 millionaire students that have taken my Trading Challenge course.
In the end, it’s all you. So apply now. I don’t accept everyone, only those who prove they’re dedicated to the process.
Leave a comment … Do YOU think you should trade hemp stocks in 2023? Let me know. I love hearing from you!