Investing in penny stocks can be scary. Of course, these investments can end up being worth it, with the possibility of investors repeating enormous gains; but it’s usually a rollercoaster of a journey to get to that point. That’s especially the case with cannabis penny stocks, considering the cannabis industry is rapidly growing, increasing the chance of volatile upside. And yet, it’s cannabis penny stocks that are doing well. Recently it has been Auxly Cannabis Group, 22nd Century Group, and MedMen Enterprises.
In this article, we’re going to look at the aforementioned cannabis penny stocks in detail. Why? Because just as it’s important to know which penny stocks to avoid, it’s important to know the opposite as well.
Cannabis Penny Stocks Making Big Moves
1. 22nd Century Group (NYSE:XXII)
As previously indicated, cannabis penny stocks often fluctuate; 22nd Century Group is no stranger to this, especially over the past few months. But the cannabis company, which is based in the United States, has received some good news in the midst of the fluctuations, such as fighting off an attack from short sellers, which helped marginally increase the cannabis penny stock.
Plus, just last week, the cannabis penny stock jumped by 10%; its trading volume has been inching higher and higher as well, ever since the FDA inspected its VLNC cigarette production facility in June.
At the time of writing, XXII stock is trading down 1.70%.
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2. Auxly Cannabis Group (TSXV:XLY) (OTCQX:CBWTF)
Auxly Cannabis Group is one to remember. Not only does the Toronto-area company produce cannabis products for the medical and adult recreational market, but it has a serious international presence, which is essential for any company trying to obtain a competitive edge in a booming industry.
Despite hitting lows toward the end of June, Auxly stock has managed to reverse the bear trend, climbing by 18% in a couple of weeks. And while the cannabis penny stock is down at the time of writing Wednesday, good things may be on their way. After all, with a shift in consumer trends, many cannabis users are now looking to Auxly Cannabis to purchase extracts.
3. MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF)
Yes, it’s true: 2019 hasn’t been a great year for MedMen Enterprises. But it’s trying to recover by reducing costs and increasing sales, and so far, things are looking up. Recently, the cannabis penny stock increased by 15% without any news being released by the Culver City, California-based company. And, because of MedMen’s significant retail presence in Arizona and Nevada, several analysts believe the company could soon see a reversal, leading to profitability in the long run.
Takeaway
Sure, these cannabis penny stocks haven’t been performing amazingly this week, but hey, that’s what happens with penny stocks. What we can say, however, is that these three cannabis companies have a lot going for them behind the scenes, and it’s worth watching the direction they take in July.
What do you think?
Featured image: PixaBay
