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Marijuana Penny Stocks That Will Explode

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Written by Timothy Sykes
Updated 5/7/2024 19 min read

Marijuana penny stocks have had a bumpy past year…

The best-performing marijuana stocks of 2021 have taken a nosedive. Want to know why?

It isn’t because the cannabis penny stocks on this watchlist have ‘failed.’ It’s because there are no best bets on the long-term growth of cannabis stocks…

I NEVER trust any penny stock. That goes double for penny cannabis stocks.

What I look at is the potential for these stocks to spike. The best of these penny pot stocks have had some LEGENDARY runs…

That’s what we’re waiting for again. Until then, I’m watching these stocks.

Table of Contents

What Are Marijuana Penny Stocks?

Marijuana penny stocks are just marijuana stocks that trade under $5 per share.

That’s the literal definition. To traders, penny stocks are stocks that can’t be depended on…

Their success is always one year away. Their press releases are hot air. Their real product is their stock…

Once they go up, you want to lock in your gains. It’s a safe bet they’ll drop again soon.

This is a safe rule for marijuana stocks on the whole.

Even the biggest of these companies still move like penny stocks. Heck — the biggest cannabis stocks are back to being penny stocks after their latest flops.

Look at Aurora Cannabis Inc. (NYSE: ACB). Back in 2019, this was the second-largest cannabis company in the world…

Its all-time-high was near $200 a share. Now it trades around $4.

Smart traders have great memories of that run. They kept the advice from this 2018 video in mind…

They traded these stocks, but didn’t believe the hype. That’s what you should be looking to do the next time these stocks pop.

Is Trading Marijuana Penny Stocks a Good Idea?

Trading any stock is a good idea… when you study its chart and have a solid plan.

If your strategy is to hold and hope, you will get burned.

99% of penny stocks will fail. That’s why traditional investors don’t go near them.

Smart traders don’t believe the hype. They aim for singles, or even smaller losses.

Most of my $7.6 million lifetime earnings come from penny stocks. Many of my students have made six- and seven-figure profits from these stocks.

Penny Pot Stocks List

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Penny pot stocks can be great for smart traders because of their potential for runs…

Afterwards, most of these stocks will revert to their natural state. Never forget, most penny stocks are basically worthless.

I’m not recommending that you trade the stocks on this list. They are just the cheaper marijuana stocks I’m watching for the next big sector run.

Hot sectors generate sympathy when big news comes their way. Low-priced stocks like these can spike BIG when that happens.

I might not trade all of these stocks. But I’m definitely gonna be watching them.

Top 9 Marijuana Penny Stocks to Watch in 2024

These are the marijuana penny stocks on my radar…

They range from cannabis heavyweights to sector hangers-on. I’ll break down each one of these stocks. It’s up to YOU to know their charts.

Watching these stocks means learning their moves. You do this by getting in screen time.

When you watch these stocks, you know what volume does to their price action. You learn to read their Level 2 quotes…

I want you to be ready for these stocks to make big moves. I know I’ll be.

Marijuana Stock to Watch #1: Tilray Inc. (NASDAQ: TLRY)

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Tilray is the first cannabis stock to trade on a major U.S. stock exchange. In December 2020 it merged with Canadian producer Aphria. That made Tilray the largest cannabis company in the world.

Tilray was a sector leader during the 2021 run. Even though it hasn’t made the same kind of moves in 2022, demand seems to be building.

Look at its late-March volume. It approached 100 million shares traded five days in a row … On March 25 it traded almost 300 million shares!

The heavy volume coincided with a run of more than 60%.

It’s since given back most of its gains. But you shouldn’t worry about that. All that matters for smart traders is its volatility.

Look at how many spikes are in this chart. Next time the sector heats up, Tilray will be ready to run.

Marijuana Stock to Watch #2: Canopy Growth Corp. (NASDAQ: CGC)

The weed sector comes and goes. It’s never been the strongest batch of runners, but we have to respect CGC’s price action. The stock already spiked 231% between March and April.

This price action isn’t random.

There’s been a lot of talk about marijuana legalization recently. Both in the U.S. and worldwide:

  • POTUS Biden and VPOTUS Harris both recently expressed an interest in reforming the U.S. approach toward marijuana.
  • Germany decriminalized marijuana.

But CGC is also running thanks to a catalyst that was announced on March 14.

  • There was news of a potential acquisition. The vote deadline for the acquisition was April 10. On April 15 we learned of a successful shareholder vote to endorse the acquisition.

I snagged a profit on March 22 thanks to the potential acquisition news. The price started running before we even learned of a successful vote.

Take a look at my trade notes below, with a starting stake of $21,420:

Source: Profit.ly

And now that the acquisition is successful, there’s a chance the price pushes even higher.

Below, a multi-month chart of the run shows support at $6. Every candle represents one trading day:

CGC chart multi-month, 1-day candles Source: StocksToTrade

This stock is in play as long as it stays above $6!

Marijuana Stock to Watch #3: Curaleaf Holdings Inc. (OTCQX: CURLF)

Curaleaf is now the world’s largest cannabis company by revenue and market cap. Through its acquisitions, it’s also become the largest cannabis company in the U.S. and Europe.

The fact that it doesn’t trade on a major exchange hurts its overall volume. The OTC markets are the Wild West of trading, even if this company is legit. Many traders avoid OTC stocks. Robinhood and Webull traders can’t trade them.

If the U.S. federally legalizes cannabis, this won’t matter. American cannabis companies like Curaleaf have the most to gain.

Marijuana Stocks to Watch #4: Jazz Pharmaceuticals PLC (NASDAQ: JAZZ)

Irish biopharma firm Jazz acquired GW Pharmaceuticals in 2021. Overnight, the company became a leader in the cannabis pharma space.

GW Pharmaceuticals is known for making the first FDA-approved, cannabis-based drug Epidiolex. It’s used to treat two rare diseases in children, so it isn’t a huge money-maker. But that could be a sign of things to come.

Jazz has another CBD-based drug in the development pipeline. This is geared toward children with autism, potentially a much larger market.

Marijuana Stocks to Watch #5: Sundial Growers Inc. (NASDAQ: SNDL)

You might remember Sundial from the Reddit frenzy of 2021 … This Canadian marijuana producer averaged around a BILLION shares traded for nearly a month!

It spiked into the $3s back then. Most of the rest of the time, it hovers under $1.

This isn’t a bad thing for a former runner like Sundial. Since it’s on the Nasdaq, penny stock-hungry Robinhood users can trade it. As a true penny stock, it’s right in their sweet spot.

Marijuana Stock to Watch #6: GrowGeneration Corp (NASDAQ: GRWG)

Not all marijuana stocks have to actually produce marijuana. GrowGeneration is a support industry. It’s the largest American chain of specialty hydroponic and organic garden centers.

Legalization won’t bring major changes to this company. This could make it well positioned for the next big news.

Marijuana Stock to Watch #7: Fiore Cannabis Ltd. (OTCQX: FIORF)

This Canadian producer has been in a death spiral since I last featured it on a penny stock watchlist.

Fiore recently entered the U.S. market through an acquisition. It also shook up its board of directors.

I don’t believe in any penny stock news, but I’m watching this stock for a dead cat bounce.

Marijuana Stock to Watch #8: Altria Group (NYSE: MO)

Altria is one of the largest tobacco companies on the planet. In 2018, it acquired 45% of Canadian cannabis company Cronos Group Inc. (NASDAQ: CRON) for $1.8 billion.

That stake has cost the company. But cannabis expansion still makes sense for Altria’s game plan.

Altria has warrants to buy a controlling stake in Cronos — for a nearly 350% markup from where it now stands. No one knows if this will happen.

What we do know is that the company is trending up, unlike other stocks on this watchlist.

Marijuana Stock to Watch #9: Cronos Group Inc. (NASDAQ: CRON)

Here’s the other piece of the Altria acquisition puzzle.

As a business, Cronos has been disappointing.

But watch this stock if Altria makes its move.

How to Trade Marijuana Penny Stocks

Unsure how to make a good penny stock trading plan? Follow these quick steps to make sure you’re prepared.

Step 1: Make Sure You Have the Right Equipment

Having the right equipment matters even more when you’re trading penny stocks.

You’re not going up against high-frequency traders in OTC markets. Institutional traders won’t touch penny stocks.

That means the right equipment can give you even more of an edge.

It starts with choosing the right broker. Robinhood and WeBull won’t let you trade OTC stocks.

Your trading platform will also give you an advantage. I trade with StocksToTrade. Its charts help me pinpoint my entries and exits…

Its Breaking News Chat add-on has helped me stay ahead of the sheep that get the news late.

Make sure your trading platform has a good Level 2 reader. Level 2 matters less for listed stocks…

On low volume stocks like OTCs, Level 2 strategies can really make a difference.

Step 2: Learn Patterns

Trading success comes down to studying…

I’ve been using my 7-Step Pennystocking Framework for over a decade. Guess what? It still works.

Step 5 — dip buying — is still one of my favorite trading patterns. It works really well for small accounts.

This is where your Level 2 skills really come in…

But discipline matters even more.

Step 3: Build and Stick to Your Trading Plan

A good trading plan is key to becoming a self-sufficient trader.

Writing down your goal and risk helps build your discipline. And discipline is key to trading these sketchy stocks.

What penny stocks are selling are hopes and dreams. Don’t follow those — follow your plan.

Step 4: Track Every Trade

Win or lose, I want you journaling.

The way you improve as a trader is by learning from your mistakes. Every trade you log will make you a better trader…

You can learn even more from your losses than from your wins.

My No-Cost Weekly Watchlist

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Becoming a self-sufficient trader can be a long and grueling process. Don’t know which stocks to watch every day?

Learn from my process.

Sign up now for my no-cost weekly watchlist. I’ll send my top watches right to your inbox every Sunday. It’s an opportunity for you to learn what goes into my picks — from patterns to catalysts to key levels. That can help you build your own watchlist.

I make a watchlist every day. It’s how I find my focus in any kind of market.

To become a self-sufficient trader, you need to have your own watchlists. Remember to respect your trading plan and do your due diligence. Never follow stock picks — not even mine.

The Bottom Line on Marijuana Penny Stocks

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Marijuana penny stocks can provide opportunities for some wild moves. The industry is still emerging. Marijuana stocks could skyrocket if legalization pans out.

Like with any sector, you’ve gotta be on the right side of the hype. Always be ready to close your position…

Your number-one mission in this trading life is to hold on to your profits and cut your losses.

Have you traded any of these stocks? What’s on your marijuana penny stock watchlist? Let me know in the comments… I love to hear from my readers!

Frequently Asked Questions About Marijuana Penny Stocks

Asking questions is how I know you’re listening! Let’s cover the most common ones…

What Are Marijuana Penny Stocks?

Marijuana stocks belong to companies that sell cannabis-based products or are in supporting industries. They become penny stocks when they trade for less than $5 per share.

Are Marijuana Penny Stocks Worth it?

Worth a trade? Depends. Worth an investment? Not for me, thanks.

How Do You Buy Marijuana Penny Stocks?

Marijuana penny stocks trade like any other stocks on their exchanges. If you know the ticker symbol, you can buy or sell using your preferred trading platform — provided you don’t use Robinhood or WeBull.

Should I Buy Marijuana Penny Stocks and Hold Long-Term?

I never recommend anyone buy and hold penny stocks. Wait until the sector shows momentum or there’s exciting news… Then make short-term trades based on the strategies you’re comfortable using.

Will Marijuana Companies Have to Use Cryptocurrency?

Legal marijuana companies in the US use cash for their business dealings.

Can I Invest in Canadian Marijuana Stocks?

Most big Canadian marijuana stocks are listed on American exchanges. Some are even listed on major exchanges like Nasdaq, as cannabis is federally legal in Canada.

Are There Any Cannabis Penny Stocks?

You might want to read this article again…

Are Cannabis Penny Stocks Legit?

Never trust ANY penny stock. You can make money trading them, which is all the legitimacy I need.

What Are the Top Companies in the Cannabis Industry?

In the rapidly expanding cannabis industry, key players such as Green Thumb Industries, Tilray Brands, and Aurora Cannabis are noteworthy. These companies are benefiting significantly from the ongoing legalization efforts and the burgeoning demand for both medical and recreational cannabis products.

How Does Legalization Impact Cannabis Company Stocks?

The legalization of cannabis, both for medical and recreational use, has been a major catalyst for the cannabis sector. Companies like Trulieve Cannabis and Innovative Industrial Properties have seen growth in revenue and stock price as legal markets expand and new opportunities for market entry and development arise.

What Financial Metrics Should Investors in Cannabis Stocks Consider?

When investing in cannabis stocks, key financial metrics to consider include cash flow, funds from operations, and the expense ratio. These indicators help assess the financial health of companies like Aurora Cannabis and provide insights into their operational efficiency and profitability potential.

What Growth Prospects Exist for New Cannabis Markets?

As cannabis legalization progresses, companies positioned in the cannabis realm, such as Flora Growth and Verano Holdings, are poised to capitalize on significant market opportunities. These firms focus on expanding their cultivation sites and distribution networks to support sustained sales growth and market penetration.

How Do Cannabis Companies Manage Regulatory Challenges?

Cannabis companies navigate various regulatory challenges, including the criticism of marijuana restrictions and the ongoing reevaluation of federal marijuana laws. Firms like Green Thumb Industries and Aurora Cannabis Inc. must also manage the risks associated with the federal classification of cannabis, which impacts banking and financial services availability.

What Are the Risks and Rewards for Cannabis Investors?

Investors in the cannabis market face a unique risk profile, including political risk and the potential for abuse and psychological dependence associated with cannabis products. However, the rewards can be substantial due to the high growth potential and expanding legalization of cannabis, which opens up new retail locations and consumer bases.

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Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”