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.

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Gold medal

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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.

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