24 hours from Cannabis legalization across Canada, and two cannabis penny stocks are leading the pack for some of the largest number of trades.
Auxly Cannabis and Namaste Technologies are our leaders today sporting trades of over 7,000 and 10,000 respectively.
Cannabis Penny Stocks: Trading Big
Auxly Cannabis Group (TSXV:XLY)
Auxly Cannabis Group has seen the week move in its favor. Starting yesterday morning, XLY stock surged 23.73% in 24 hours. At the time of writing, these penny stocks are valued at $1.46 CAD.
With legalization starting tomorrow, Auxly has positioned itself to ensure these types of gains continue.
How is it doing this?
Well, Auxly has a rather enviable business model: the company has made several acquisitions and multiple streaming deals in which it provided up-front capital in exchange for a stake in future cannabis crops, future revenue, and/or equity.
This means, not only does Auxly have vertical integration across the cannabis industry with a foothold in every part of the process. Its multiple deals mean it will have its name attached to well over 150,000 kilograms of cannabis. Such capacity now ranks it No. 4 in Canada for marijuana production.
But the most beneficial aspect of this business model for investors is that Auxly reaps the benefits of a multitude of partners, yet if one of those partners fails, Auxly has its fingers in enough pies to compensate for that loss.
It is a system that should see the company stay consistently afloat…and then some.
Namaste Technologies (TSXV:N)
This cannabis penny stock began climbing last Friday but the ascent continued over the weekend. In the last 24-hour period alone, this stock has grown by 23.14% (although it is currently trading down). At the time of writing, N stock is valued at $2.82.
Today, on the index, it is a cannabis penny stocks leader.
However, N stock was shaken in recent weeks after Namaste faced allegations of fraud. Citroen Research released a controversial report on the company and a feud between Namaste CEO Sean Dollinger and the website has since emerged off the back of it.
Whether investors want to trust allegations or not is an individual decision, but either way, this market is fresh and leaves a lot more room to grow for any of these cannabis penny stocks.
Featured Image: Depositphotos/© nito103