Penny pot stocks make most analysts lists of riskier plays, as the market still suffers from latent trauma left over from the dotcom bust at the turn of the century. Still, marijuana penny stocks -- defined as trading below $5 a share with a $200 million market cap or less -- have fared rather well of late. While long-term these plays may well be sorted out into clearly defined winners and losers, with more in the loser column than not, a few should still make it into any portfolio not afraid of a bit of risk.
The disadvantages that the cannabis industry faces from the federal government are nothing to ignore either, but real winners in the penny pot stock market have played this to their advantage. They diversify, giving shareholders ample opportunity to protect their investment while hedging their bets. Here are the two penny pot stocks that are worth the risk to investors right now:
A diversified company servicing the legal cannabis industry on several fronts, mCig Inc. (OTCMKTS:MCIG) benefits from multiple revenue sources that protect shareholders on a fundamental level. In a testosterone-fueled industry bent on showcasing the largest grow capacity, mCig focuses on the distribution of technology and other products as a service provider.
Born as a vaporizer company, this pot stock now claims every sector of cannabis as a part of its portfolio. They are a seed-to-sale business that touches the supply chain from cultivation to packaging. Late last year the company announced the expansion of its cryptocurrency portfolio, through the creation of ICOMethod, LLC., a cryptocurrency consulting division. The move follows their sizeable investment in the cryptocurrency game through the purchase of ATM’s.
Even with such a diversified portfolio, this penny pot stock shines from its origins in the vaporizer business. Not only is it one of the fastest growing consumer products in the cannabis economy, but companies dealing in extracts and the ancillary products to match tend to show solid growth due to higher margins.
Though much of their holdings lie in volatile cryptocurrencies, mCig is a weed stock so diversified that it is worth the risk for any investor looking to jump into the marijuana penny stock market. With a healthy market cap near $100 million, and a share price holding near $0.24 per share, mCig is a solid play in the marijuana penny stock market.
Leafbuyer Technologies Inc.
Colorado-based Leafbuyer Technologies Inc. (OTCMKTS: LBUY) is another penny pot stock betting big on blockchain technology. According to MarijuanaStocks.com, Leafbuyer hopes to develop a "large-scale platform based on blockchain technology."
The company, which already provides consumers with weed deals and information on cannabis laws claims predicts that the foray into blockchain will “enable Leafbuyer to capitalize on its rapidly expanding web traffic. A feature of the new technology will allow users to register and participate in “Special Deals” only offered to them through the New Program.” Though thin on details, it appears to be a solid plan in a sector that lacks such.
More importantly, Leafbuyer saw sales increase 42 for the quarter ending December 31, 2017. Overall, the company’s stock price soared a whopping 147 percent in a 12 month period, from $0.76 per share to $1.88. With experts predicting the blockchain industry to jump an astounding $2.3 billion by 2021, it is clear why this penny pot stock has such a definite upside.
As one expert noted, should the company jump another 147 percent throughout the next year, they would be trading at $4.70 per share. This marijuana penny stock is definitely worth the risk.