Let’s think outside the box with April’s marijuana stocks to watch.
You’ve heard about the usual growers and distributors in the marijuana game … But where do these companies operate? Who provides them with the growing supplies they need? And who infuses medical marijuana into drugs and treatments?
There’s far more to the marijuana stock sector than meets the eye…
So this month I’m watching some ancillary providers and biotechs that work in the background of the marijuana stock sector….
Because any legalization news and increased demand for marijuana can have a ripple effect on these companies as well. And looking for opportunities where others don’t can give you an edge when news is released.
Some of these stocks are higher priced, but they can still be worth watching. Learn from the price action and catalysts. That can help you discover how to find stocks that suit your strategy.
Here’s what I’m watching 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.
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.
Now, let’s get to the top marijuana stocks I’m watching…
Top 10 Marijuana Stocks to Watch
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.
Here’s my list of marijuana stocks to watch in April 2021…
Marijuana Stocks to Watch #1: Hero Technologies Inc. (OTCPK: HENC)
HENC is a sketchy penny stock that was an oil and gas company before entering the cannabis business.
Now the company description on OTCmarkets.com states, “The company has a majority stake in BlackBox Systems and Technologies LLC. BlackBox is an aeroponic cannabis cultivation system that provides optimal conditions to enhance photosynthesis and cultivation of large flowering plants, creating increased efficiencies.”
I’ll watch for a break above $0.175 resistance.
Marijuana Stocks to Watch #2: Curaleaf Holdings, Inc. (OTCQX: CURLF)
The stock is holding near its all-time highs. A breakout to new highs could be a catalyst to a bigger move.
Marijuana Stocks to Watch #3: OrganiGram Holdings Inc. (NASDAQ: OGI)
OrganiGram Holdings Inc. is a Canadian marijuana company. On March 11 it announced British American Tobacco (NYSE: BTI) bought a 20% stake in the company.
OGI is scheduled to report second-quarter earnings on April 13. I’ll watch for a reaction to earnings.
Marijuana Stocks to Watch #4: The Scotts Miracle-Gro Company (NYSE: SMG)
Scotts Miracle-Gro is what’s known as an ancillary provider. It’s not directly linked to marijuana cultivation or distribution. It supplies fertilizers and soil that growers need.
If the demand for marijuana increases, the demand for fertilizers and soil could also increase. The stock is near its all-time high. Watch for a breakout over $254.34.
Marijuana Stocks to Watch #5: Green Thumb Industries Inc. (OTCQX: GTBIF)
GTBIF is getting attention recently for all the wrong reasons … At the end of last month, an article was published alleging the company was implicated in a federal investigation. The stock gapped down after the news.
The company denied the allegations immediately and the stock recovered some of its losses. It’s still hovering near its all-time highs of $39.11. But this one could see more selling pressure without news. Watch for panic dip buy opportunities.
Marijuana Stocks to Watch #6: Khiron Life Sciences Corp. (OTCQX: KHRNF)
KHRNF cultivates and distributes medical marijuana. On March 11, it announced its the first Colombian cannabis company to export live plants to Europe.
Tejinder Virk, president of Khiron Europe, said, “By exporting our Colombian cannabis strains, we will be able to bring our Latin American extracts to European patients, resulting in wider choices for doctors, and safer, more efficacious patient outcomes.”
On March 22, the company announced its medical marijuana was shipped to Germany for distribution through its partner company.
The stock looks to have found support around 43 cents. I’ll watch for a bounce to the upside, ideally with volume and a catalyst.
Marijuana Stocks to Watch #7: Innovative Industrial Properties, Inc. (NYSE: IIPR)
IIPR is another ancillary provider. It’s in the real estate sector. It focuses on acquiring, leasing, and managing properties for marijuana operations.
On April 5, IIPR announced it expanded its partnership with a company leasing a grower-processor facility.
Marijuana growers, distributors, and retail outlets all need real estate for business. Legalization news and expansion of the industry could increase the demand for marijuana-friendly properties.
I’ll watch for the stock to return to its highs but it likely needs a catalyst since it’s not very volatile.
Marijuana Stocks to Watch #8: Trulieve Cannabis Corp. (OTCQX: TCNNF)
Trulieve Cannabis Corp. produces marijuana flower, edibles, concentrates, vaporizer cartridges, and topicals for distribution in multiple states.
The stock recently broke down out of a channel. It’s on watch for panic dip buys only.
Marijuana Stocks to Watch #9: Silver Spike Acquisition Corp. (NASDAQ: SSPK)
Silver Spike Acquisition Corp. is a special purpose acquisition company (SPAC). WM Holding Company, LLC merged with a SPAC to go public in December 2020.
WM Holding Company operates Weedmaps. That’s a website and app where consumers can find marijuana dispensaries and shop brands and available products. Customers can also order online for in-store pickup.
This is another ancillary provider that could move on legalization news in more states or on a federal level. It’s one to watch for a catalyst and volume.
Marijuana Stocks to Watch #10: IntelGenx Technologies Corp. (OTCQB: IGXT)
IGXT is a biotech company. It’s developing oral film strips to treat ailments like migraines and nausea.
The company has a development and supply agreement with Tilray, Inc. (NASDAQ: TLRY) for the development of its CBD oral film strips. It was amended last year to allow IGXT to work with other partners.
On March 31, the company announced it completed its first shipment of CBD film strips to Heritage Cannabis Holdings Corp. (CSE: CANN).
I’m watching for a breakout over the 50-cent resistance.
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!
Timothy Sykes 2021-04-08 19:00:38