3 MORE Penny Pot Stocks to Make You a Millionaire

Penny Pot Stock No. 1: 1933 Industries (OTC: TGIFF)

1933 Industries (OTC: TGIFF) is another hemp-based CBD producer for the medical and recreational market.

It also offers advisory services for clients in security, intelligence and due diligence that work in or around the marijuana industry.

It has operations in the U.S. and Canada. So it’s strategically positioned to benefit from both legalization in the U.S. and the fast-growing legal Canadian market.

The company has already seen impressive growth over the past year.

In the second quarter of 2019, the company reported $8.3 million in revenue – a 54% increase year over year. It also saw a 42% growth in its gross profits.

For fiscal 2018, it saw annual revenue hit $12.6 million – a more than 1,100% spike from its total revenue the year prior.

As expected, the company saw a loss in terms of net income. But in order to be successful, young companies often burn up capital to fuel fast topline growth and market expansion.

That’s exactly what 1933 Industries is doing, and you don’t have to look farther than Las Vegas – where the company recently finished developing a brand-new facility – to see so.

But there’s a plot twist…

Even more recently, the company’s subsidiary, Alternative Medicine Association, sold the newly constructed Las Vegas cultivation facility for $10.5 million.

Not only did the sale bring in new capital, but it came with a 10-year lease back period that can be expanded for up to another 10 years.

This means it can still use the facility for production activity, while pocketing new cash on hand to invest elsewhere.

1933 Industries’ stock is trading for just over $0.30. Yet its financial position and future growth prospects suggest it could jump much higher.

And this one’s trading at a discount, compared with other marijuana stocks.

It’s trading at less than seven times its sales.

This penny pot stock offers great upside, has tremendous growth prospects and remains remarkably cheap.

For that reason, I’d consider adding it to your portfolio now.

Penny Pot Stock No. 2: Liberty Health Sciences (OTC: LHSIF)

The Sunshine State is one of the country’s hottest medical marijuana markets. And that’s thanks in large part to its massive population of 21.6 million.

Of course, we all know that Florida is not only a favorite travel destination… it’s also a favorite for retirees.

The state’s median age is 42.

That means Florida’s population is one of the oldest in the country.

And even though Maine, New Hampshire, Vermont and West Virginia have higher median ages, keep in mind their combined populations are 5.13 million.

That’s a quarter of Florida’s.

And this large, older population is instrumental for the state’s booming medical marijuana industry!

So forget Disneyworld, Epcot Center, GatorWorld, Jungle Adventures or The Villages.

Because over the past year, the number of Florida marijuana dispensary has exploded… surging more than 250%!

In fact, on average, two new dispensaries are opening each week in the Sunshine State!

In 2018, the number of medical marijuana patients tripled. Today, there are more than 200,000, with 10,000 new sign-ups each week.

In the past, I’ve mentioned that Florida’s medicinal market will likely be the crown jewel of the U.S. Meanwhile, California and Nevada will be key adult-use markets.

Last year, Florida’s medical marijuana market grew tenfold to more than $250 million.

But there’s no slowing down.

By 2020, cannabis sales should top $1 billion.

It’s no surprise, considering all the facts I just gave you, that it’s the fastest-growing medical cannabis market in the country.

And part of the reason is a law that went into effect in July 2018, which made stricter guidelines for doctors to prescribe opioids and other controlled substances.

So now a lot of the seniors that were on opiates are switching over to cannabis.

Of course, this is a trend I’d like to see repeated across the country.

It’s also worth pointing out the number of opioid deaths in Florida in 2018 declined 41%.

Was medical cannabis the root cause of that total decline? Of course not. There are a lot of factors at play.

But it is probably contributing somewhat, as 100,000 patients were added to the medical marijuana registry last year.

Other noteworthy events are the state’s repeal of a ban on smoking medical marijuana flower, as well as passing rules on edibles in April.

This is going to provide even more oomph to an already hot market.

But despite all these positive milestone, it’s not a utopia for cannabis companies… at least not yet.

Currently, 14 companies are licensed to operate in the state.

Liberty Health Sciences (OTC: LHSIF) is one of them.

The cannabis company is dedicated to Florida with 14 dispensaries currently open. It just opened its newest one in May 2019. But it has nine more planned. And it’s licensed to open 30 dispensaries in the state.

On top of that, Liberty Health recently received approval to expand its Liberty 360 facility in Gainesville, Florida, to 228,800 square feet.

And to cap it all off, it became one of the first companies in the state to receive approval to provide pre-rolled whole flower products after Florida ended its ban on smokable medical marijuana.

Liberty Health is firing on all cylinders.

Its third quarter revenue grew 45% sequentially to $3.2 million. And its patient count grew 46%.

But eyes are set beyond just Florida. Liberty Health plans to expand into Ohio in 2019.

Penny Pot Stock No. 3: Medicine Man Technologies (OTC: MDCL)

In 2018, Colorado brought in roughly $266 million in cannabis tax revenue.

That’s more than a 100% increase from 2015. And as the registers ring, that figure is going to head higher.

But Colorado is just one of the more than 30 states where marijuana is now legal in some form…

That’s a boon for a company like Medicine Man Technologies (OTC: MDCL).

The cannabis consulting services firm gets a shot in the arm every time a new state joins the legalization ranks.

As I said, there’s a network of companies involved in getting a plant from the farm to the dispensary.

New businesses need help and guidance. And that’s where Medicine Man comes in.

Think of Medicine Man Technologies as an expert’s expert.

When I met this company’s CEO for an interview, I started seeing remarkable similarities…

Just like Cronos, this company licenses out all its know-how… from cultivation to business models. They are the experts you bring in when you want to go from a startup, garage-band operation… to the main stage on a major exchange.

And just like its role model… it’s living up to expectations nicely.

For starters, it’s in the top 100 ancillary businesses of 2016 from Cannabis Business Executive.

On January 15, 2019, it moved forward on a massive deal, acquiring a cannabis company called MedPharm Holdings.

The CEO revealed, “We have clients in 17 states and seven countries. This highly scalable product line allows us to leverage those existing relationships worldwide.”

So this company has a HUGE advantage out of the gate thanks to its acquisition.

For the first quarter, Medicine Man reported record revenue of more than $2 million. This was a 65% year-over-year increase. But product sales surged 236%!

Even better, the price is ultra-cheap.

But I really don’t see it staying that way

To show how fast the industry is changing, the company recently delayed its fourth quarter earnings.

This isn’t a bad thing.

Medicine Man thought it would be beneficial to wait until after the legislative insights on Colorado state bill HB 19-1090. This bill would allow public company ownership of Colorado licensed cannabis businesses.

Back in January, Medicine Man Technologies announced its intent to acquire Medicine Man Denver. The company has four retail locations and one of the largest indoor cultivation operations in the state.

This would help Medicine Man Technologies reach annual revenue of more than $40 million. But it needs HB 19-1090 to be approved for this to happen.

As CEO Andy Williams said, “With the recent progress of HB19-1090 and the strong overall momentum within the cannabis industry, we came in this quarter with record revenues and strong sales from our products division.”

Looking ahead, the company feels it’s on a major growth trajectory. And I think so too!

NOTE: Given the nature of these penny pot stock recommendations, I strongly recommend limiting your investment risk with a simple trailing stop policy. When buying these companies, consider using a 50% trailing stop on your purchase in order to protect your principal and profits.