Marijuana stocks have been quiet lately…
But like any sector, you never know what news or huge spiker will ignite a run.
Marijuana stocks ran before and they have the potential to do so again — especially with federal legalization. And on that front…
Senate Majority Leader Chuck Schumer proposed draft legislation to legalize marijuana on a federal level on July 15. It needs 60 votes to pass the Senate.
But it’s a step toward a MAJOR news catalyst that could create a massive run in these stocks. So keep up with the latest and maintain your watchlist.
Here are the top 10 marijuana stocks I’m watching in August and why…
Should You Trade Marijuana Stocks?
First, you should NEVER blindly trade someone else’s picks. Not even mine.
I want you to understand how to choose stocks to trade and create smart trading plans. That’s how you can really take advantage of hot sectors and trading opportunities.
You’ve gotta think about what makes stocks move, how they move, and what you can learn from these movements for future trades.
I’m watching marijuana stocks because they’re volatile. Many are former runners, and they can move on news and hype.
Any new development could be a potential catalyst for a spike.
But before you get too excited thinking you’ll find the Tesla of marijuana stocks … Do yourself a favor and go back and study history.
I’ve seen this kind of crazy action before … In 2018, marijuana stocks went nuts on news that Canada legalized recreational use of weed on a federal level. What happened almost immediately after legalization day came and went? All the weed stocks crashed.
Some even tanked to new all-time lows.
So learn to trade these stocks. Don’t invest in them long term. Be prepared to strike when a stock fits your pattern and strategy. Always stick to your trading plan and rules and NEVER believe the hype.
Top 10 Marijuana Stocks to Watch in August 2021
Remember, this is a watchlist. There’s no guarantee any of these stocks will fit your trading pattern or style. And if you blindly buy them hoping for the best, you’re on your own. That’s not what this watchlist is for…
If that’s your plan, I suggest you save your money and paper trade until you figure out a strategy that works for you.
Use my stock picks to understand the thought process behind how I build a watchlist so you can work to build your own. Some of these stocks are higher priced. You don’t have to trade them. Learn the top lessons here then make your own watchlist.
Here’s my list of marijuana stocks to watch in August 2021…
Marijuana Stocks to Watch #1: Flora Growth Corp. (NASDAQ: FLGC)
FLGC processes and supplies cannabis oil, extracts, and beauty products to pharmacies and retailers.
The stock had its first green day on July 26 after the company reported “the President of Colombia has accepted and signed into effect the revisions related to the existing Colombian cannabis laws.”
The company operates a 247-acre outdoor cultivation facility in Colombia. And the new laws position the company “to increase near-term and long-term revenue, optimize its global supply chain of premium brands and products, and maximize economics both domestically and abroad.”
Read the full press release here.
One day after the news was released, the company announced it signed a non-binding letter of intent to form a joint venture with a Canadian company. Under the agreement, “Flora Growth will manage registration, sales, and distribution of KaLaya products in Colombia, Mexico, and other LATAM countries, while Avaria will supply finished product.”
In three trading days, the stock went from roughly $3 to $10.23. At writing, it’s trading in the $7s. Volume’s fading so I’ll watch this one for a dip-buy into any big panic.
Marijuana Stocks to Watch #2: Mydecine Innovations Group Inc. (OTCPK: MYCOF)
MYCOF’s a Canadian company that researches and develops nature-sourced medicines, including cannabis and psychedelics, to treat mental illness.
Company CEO Josh Bartch will participate in two investor conferences on August 10.
If the presentations bring in more volume, I’ll watch for a trade based on my patterns.
Marijuana Stocks to Watch #3: Pure Extracts Technologies Corp. (OTCPK: PRXTF)
PRXTF’s another Canadian marijuana company. It produces marijuana extracts.
On July 28 the company announced it received its sales license from Health Canada. The permit allows the company to sell “cannabis extract products to provincially authorized distributors and retailers nationwide as well as to holders of licenses for the sale of medical cannabis extracts.”
The stock’s trading sideways between 28–36 cents. I’ll watch it for a potential breakout out of the channel.
Marijuana Stocks to Watch #4: Neutra Corp. (OTCPK: NTRR)
NTRR’s a U.S. hemp research and development company that provides hemp-based nutraceutical products.
On August 2 the company announced its products will be available at Wisconsin’s Festival Foods flagship grocery store on August 9. The company hopes to expand into all 34 stores soon.
Read the full press release here.
This is a sub-penny stock — not my favorite to trade. But it traded high volume and had its first green day after the news. It’s also a former multi-day runner. I’ll watch it for more potential upside.
Marijuana Stocks to Watch #5: Sundial Growers Inc. (NASDAQ: SNDL)
SNDL is a Canadian marijuana company that produces and sells cannabis and vapes.
SNDL announced it entered the retail cannabis market by acquiring Inner Spirit Holdings Ltd. (OTCQB: INSHF) on July 20.
“The acquisition of the Spiritleaf cannabis retail network makes Sundial a stronger and more diverse cannabis company. We are excited to work with the Spiritleaf team and franchise partners to further develop and optimize the store network in Canada and provide a clear path to sustainable profitability for Sundial,” said Sundial CEO Zach George.
Read the full press release here.
It has a beaten down chart but sometimes these stocks can have explosive moves with the right catalyst and high volume. That’s what I’ll watch SNDL for.
Marijuana Stocks to Watch #6: Tilray, Inc. (NASDAQ: TLRY)
TLRY grows and sells marijuana flower, extracts, capsules, and hemp-based foods and beverages.
The company sparked action in the marijuana sector when it announced fourth-quarter financials on July 28. It was the first time the company reported earnings since its completed merger with Aphria.
Tilray’s chairman and CEO said, “In a very short period of time since our business combination was finalized, we transformed and strengthened Tilray, delivered solid results amid continued COVID-19 lockdowns and restrictions and achieved $35 million in synergies to date – well on our way to delivering $80 million in cost savings over the next 16 months.”
It’s another former runner that’s way off its highs. But it has the potential to run again with the right news and high volume.
Marijuana Stocks to Watch #7: Greene Concepts, Inc. (OTCPK: INKW)
INKW’s a beverage and bottling company that offers cannabinoid-infused beverages.
On August 2 it announced it’s in discussions with a firm to potentially acquire a sports hemp beverage line. That would give the company exposure to the $22 billion sports drink market.
The stock’s trading between 1 and 2 cents. It likely needs sector news and momentum to push it higher.
Marijuana Stocks to Watch #8: Grove, Inc. (NASDAQ: GRVI)
GRVI produces, manufacturers, and sells cannabinoid products through its subsidiaries. It supplies the beauty, pet care, and food sectors.
The company just had its IPO in June, and on July 28 it announced fourth-quarter financial results. The stock had a huge gap up and spike. It went from roughly $5 to $7.50 but didn’t hold its gains.
The stock’s consolidating between $5 and $5.75 per share. I’ll watch for it to potentially spike and breakout above $5.75. It has a low float of roughly seven million shares so it could have a volatile move.
Marijuana Stocks to Watch #9: Green Thumb Industries Inc. (OTCQX: GTBIF)
GTBIF cultivates and distributes marijuana flower, and processed and packaged products like edibles, topicals, and concentrates.
The company announced it closed the acquisition of a production facility and retail location in Rhode Island on August 2.
Read the full press release here.
The stock’s trading sideways near its all time highs of $37.96. I’ll watch for upside momentum and more volume to come in.
Marijuana Stocks to Watch #10: Akerna Corp. (NASDAQ: KERN)
KERN provides software solutions and compliance systems for marijuana companies in the U.S. and Canada.
The company will report second-quarter financial results on August 9.
I won’t try to predict earnings. I’ll watch for a reaction before planning a trade.
See the Stocks I’m Watching
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Conclusion: Should You Trade Marijuana Stocks?
When it comes to trading penny stocks, volatility can be your friend. Marijuana stocks have plenty of volatility and hype right now, so they’re creating a ton of opportunities.
But that doesn’t mean you should trade just any stock in the sector. You’ve got to be diligent about your research and studying. Only choose the setups and patterns that work for you.
If you want to make the most of weed stock opportunities, you’ve got to invest in your education account first.
I share my 20+ years of experience trading penny stocks with new traders in my Trading Challenge. I want anyone who’s dedicated to take advantage of what I’ve learned — both good and bad.
If you’re accepted (you have to apply and I only accept dedicated traders), you’ll get access to tons of video lessons, live trading, and Q&A webinars. Plus, you can get trading commentary from me and the top traders and moderators in my Challenge chat room.
I purposefully trade with a small account so I can be on the same level as new traders. I also show every single trade publicly so I can use every trade as a lesson.
But don’t apply if you’re looking to get rich quick. That’s not what I teach. Trading isn’t easy. You have to study, work hard, and put in the time and dedication.
Ready to get started? Apply today.
What do you think about these marijuana stocks to watch? Are any of these tickers on your watchlist? Let me know in the comments, I love to hear from you!
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