This Cheap Pot Stock Is an Award Winner

With overpriced marijuana stocks like Canopy Growth Corp (TSX:WEED)(NYSE:CGC) tanking, investors should be looking at less-expensive weed stocks.

| More on:

How would you feel about being named “Master Grower of the Year” at the first gala dedicated to marijuana? Agnes Kwasniewska from HEXO (TSX:HEXO)(NYSE:HEXO) took home this award on September 12. Not only was she the first-ever named Master Grower, but she was also the first female master grower.

The glass ceiling is no match for women in cannabis.

Licensed producers across the cannabis community cast ballots on whom they thought most deserved acknowledgement for dedication and quality.

Cannabis investors may want to take note of HEXO’s award-winning success in marijuana. If licensed producers agree that HEXO’s cannabis is the best in the industry, then the corporation may end up doing much better than competitors over the next 10 years.

This young marijuana producer has not only set up strategic operations for export into the United States, but it is also eyeing the market in the European Union. Greece is a low-cost centre near the European Union, where the company will have preferential access to Eurozone trade.

Hollywoodesque potential

The cannabis industry is starting to develop more in common with Hollywood every day. In August, HEXO announced 18 new products, including the award-winning Helios, dried flower. O’Cannabiz 2019 named Helios the Best Sativa at the industry awards.

Maybe the most exciting cannabis products on the market today are the industry’s discreet dosing merchandise.

Gamers of the famous Knights of the Round Table particularly love this HEXO Elixir. Some customer reviews about the spray include the following:

“The HEXO elixir helped me breed the right Chocobo, and I was able to finally get the Knights of the Round Table summon… Wait, what was I was talking about again?”

“I had an encounter with the Midgar Zolom, not too far from the Chocobo Ranch. It was a long-fought battle, and I felt pretty drained. Luckily this Elixir fully restored my HP/MP; it’s a beauty.”

These gamers sure sound like they enjoyed their experience with the HEXO elixir — and the game sounds like a blast, too.

Cheap pot stocks are the way to go

With overpriced marijuana stocks like Canopy Growth tanking on the exchange, cannabis investors should be looking at less-expensive but active weed stocks like HEXO to boost their cannabis portfolios.

HEXO currently only trades for $4.09, but the volume on the TSX is high at over 3.5 million shares exchanging hands every day. Low-cost marijuana stocks like HEXO are the best bets for long-term gains.

Taking a chance on overpriced options like Canopy Growth is too risky. Jim Cramer from Mad Money commented that he had sold Shopify because it started looking like a parabola. Well, Canopy Growth hit its high back in April of 2019, and it’s been in “parabola mode” ever since.

At $31 per share at the time of writing, Canopy Growth is still too risky for the individual investor to take into their portfolio. This is one stock to avoid for the next year, at least until investors have a better idea of how the marijuana stocks stack up against each other.

In the meantime, there is no shame in making some small gambles on some of the cheaper marijuana stocks, making the news for significant award wins like HEXO!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Debra Ray has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and Shopify. Shopify is a recommendation of Stock Advisor Canada.

More on Stocks for Beginners

construction workers talk on the job site
Energy Stocks

Best Stock to Buy Right Now: Baytex vs Suncor?

Suncor and Baytex stocks both look like solid companies offering growth and dividends. But which is the better buy?

Read more »

profit rises over time
Top TSX Stocks

3 Reasons to Buy Enbridge Like There’s No Tomorrow

Have you considered buying Enbridge (TSX:ENB)? Here are 3 reasons to buy Enbridge today for lasting growth and income.

Read more »

An investor uses a tablet
Stocks for Beginners

If I Could Only Buy 2 Stocks in the Last Half of 2024, I’d Pick These

I’m looking to buy two stocks over the next month. Here’s a look at my picks and why you should…

Read more »

dividends grow over time
Stocks for Beginners

The Smartest Growth Stock to Buy With $2,000 Right Now

Do you have $2,000 to invest for the long term? These three TSX stocks have and will continue to deliver…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

OpenText stock has fallen in the last few years, but that could mean this top tech stock remains an undervalued…

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer REIT Stocks to Buy Right Now for Less Than $200

REITs have long been touted as some of the best dividend stocks out there if you want recurring, strong income.…

Read more »

grow money, wealth build
Dividend Stocks

3 Top High-Yield Stocks to Buy in November

If you want passive income, high yield dividend stocks are the clear choice. These are the best, and safest, out…

Read more »

Stocks for Beginners

Where will Loblaw Stock be in 5 Years?

Want a great food stock that can provide growth and income? Here's why Loblaw stock can offer that and more.

Read more »