Moving into the latter half of 2019, our eyes are firmly on two penny stocks that are gaining traction within the CBD space. For investors who enjoy speculative stocks, these could be for you.
On the radar today are IGC and NBEV stocks.
Penny Stocks to Watch: India Globalization Capital (NYSE:IGC)
If you followed IGC closely in recent years, the company has no doubt puzzled you. That is because India Globalization Capital has changed its business model on multiple occasions—it even faced delisting from the NYSE American because of this.
What began as a heavy equipment rental business, moved into managing real estate and has now evolved into a producer of cannabis-based products. There is no clear correlation.
But, none-the-less the move into cannabis piqued investor interest, and year-to-date, the IGC penny stock has packed on 235%. Much of this growth is attributed to the launch of its THC-based drops in Puerto Rico but, also, to its successful appeal to the NYSE against delisting in February.
India Globalization Capital now markets a cannabis-derived product called Hyalolex, which aims to help patients with Alzheimer’s disease. And although it has yet to be approved by US regulators, investors still clearly back the firm’s dramatic move into cannabis-derived products.
Late last year the company announced a distribution and partnership deal to create a cannabidiol-infused energy drink. Shares surged on this news and hit $13 USD at the peak.
Investors do get behind the IGC penny stock even if the company is somewhat of a head-scratcher. Shares are priced very low at present; $1.44 USD.
Penny Stocks to Watch: New Age Beverages (NASDAQ:NBEV)
New Age Beverages more than doubled last year, surging in the summer after it announced its move into CBD-infused beverages. There’s no doubt that CBD is a lucrative and massively trending market, and taking advantage of it seemed more than apt for the distributor of functional beverages.
Growing on this, New Age Beverages announced its first major international expansion at the end of June. It will be selling its CBD products in Hong Kong. As well as this, it announced an expanded licensing agreement with the family of Bob Marley and Docklight Brands. This agreement will also help to push it into new markets as well as introduce new products.
Recently, the company faced an attack from a Grizzly Research report, which suggested that investors were “duped in the acquisition of the larger Morinda Holdings” in 2018. The company is battling its case, and accusations do not prove anything. All the same, investors should note that NBEV stock was damaged by the report and shares fell 16% subsequently.
But for $4.43 USD on the NASDAQ, the NBEV penny stock could offer investors a play in the burgeoning, albeit, volatile world of CBD-infused products.
What are your thoughts on penny stocks? Are you a fan?
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