In this article, we discuss the 10 cheap hemp stocks Redditors are buying. If you want to skip our detailed analysis of these stocks, go directly to the 5 Cheap Hemp Stocks Redditors are Buying.
As the lawmakers in the United States grapple with the implications of legalizing marijuana at a federal level, the hemp industry can offer telling insights in this regard. In 2018, the Farm Bill was signed into law and removed hemp from a list of controlled substances. In the years since, the hemp marketplace has exploded. The hemp industry was valued at over $5 billion in 2019 and is forecast to grow at a compound annual growth rate of close to 34% to reach a size of more than $36 billion in the next five years.
The legalization of hemp has resulted in a flurry of business activity around the plant whose uses extend beyond the pharma field. For example, hemp can be spun into fibre for use in the manufacturing of products such as paper, plastics, paint, furniture, and even automobile parts, among other things. The hemp plant also has a fast-grower advantage, making it a lucrative harvest. According to Beau Whitney, the founder of Whitney Economics, this potential is evident from the fact that there was a 100% increase in hemp firms registered in the US in 2020.
Some of the trends that are expected to define the hemp market in the coming years include the shift to online sales, the increasing competition in the market, and the quality of hemp-based food and drink products that are one of the top-selling items of the industry. The changing attitudes towards cannabis in the US, especially with regards to hemp and marijuana, are likely to fuel growth of these CBD companies. According to Pew Research Center, more than two-thirds of Americans now support the legalization of cannabis products.
Some of the best hemp stocks on the market to profit off this trend include Philip Morris, Inc. (NYSE:PM), Altria Group, Inc. (NYSE:MO), Arena Pharmaceuticals, Inc (NASDAQ:ARNA), Scott Miracle (NYSE:SMG), and Turning Point Brands, Inc. (NYSE:TPB), among others discussed in detail below. There is little doubt that the hemp industry has transformed the business of pharmaceuticals, acting as a disruptor in the market in much the same that the rise of fintech has impacted the world of finance.
The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Photo by Add Weed on Unsplash
Our Methodology
With this context in mind, here is our list of the 10 cheap hemp stocks Redditors are buying. These were ranked keeping in mind the hype around these firms on Reddit. In addition, the products that these firms make and sell in the hemp marketplace were also carefully considered in relation to the growth potential of the company. The price of each stock is mentioned alongside other details for further clarity.
Cheap Hemp Stocks Redditors are Buying
10. Right On Brands, Inc. (OTC: RTON)
Price as of August 16, 2021: $0.0023
Right On Brands, Inc. (OTC: RTON) is placed tenth on our list of 10 cheap hemp stocks Redditors are buying. The company is based in Texas and markets hemp-enhanced snack foods. It was founded in 2011. The firm has a market cap of over $13.5 million and posted close to $78,000 in revenue in the last fiscal year. Some of the products it makes and sells include snack bars, sparkling tea, ENDO Water, ENDO Drops, ENDO Ease, and ENDO Tokes, among others. It has an online presence to supplement retail sales.
At the end of July, Right On Brands, Inc. (OTC: RTON) announced that it would be opening the first licensed retail of the company in Austin by the end of August. It also revealed that it had partnered with a local distributor to place products in a branded vending machine.
The 52-week price range of Right On Brands, Inc. (OTC: RTON) stock is between $0.0001 and $0.0108. The average volume is 38,450,360. The company was formerly known as HealthTalk Live. It changed the name to Right On Brands in the summer of 2017.
Just like Philip Morris, Inc. (NYSE:PM), Altria Group, Inc. (NYSE:MO), Arena Pharmaceuticals, Inc (NASDAQ:ARNA), Scott Miracle (NYSE:SMG), and Turning Point Brands, Inc. (NYSE:TPB), Right On Brands, Inc. (OTC: RTON) is one of the hemp stocks Redditors are buying.
9. Hemp, Inc (OTC: HEMP)
Price as of August 16, 2021: $0.0052 per share
Hemp, Inc (OTC: HEMP) is ranked ninth on our list of 10 cheap hemp stocks Redditors are buying. The company is headquartered in Nevada and concentrates on the provision of industrial hemp. The firm was founded in 2008. It has a market cap of over $57 million and posted more than $2.5 million in revenue last year. In addition to processing and marketing industrial hemp, the company also provides hemp-related education and training to farmers. It sells other items like harvesters, storage bags, and containers, among others, as well.
On August 10, Hemp, Inc (OTC: HEMP) welcomed the decision of the World Anti-Doping Agency to remove cannabidiol from a list of prohibited substances, allowing athletes to use the chemical as part of their training regimes.
In June last year, Hemp, Inc (OTC: HEMP) revealed that the sales of the Pre-98 OG Bubba Kush, the top hemp flower marketed by the firm, had crossed the $1 million in revenue mark, looking set to cross the $2 million barrier in June.
Alongside Philip Morris, Inc. (NYSE:PM), Altria Group, Inc. (NYSE:MO), Arena Pharmaceuticals, Inc (NASDAQ:ARNA), Scott Miracle (NYSE:SMG), and Turning Point Brands, Inc. (NYSE:TPB), Hemp, Inc (OTC: HEMP) is one of the hemp stocks Redditors are buying.
8. Green Globe International, Inc. (OTC: GGII)
Price as of August 16, 2021: $0.0069 per share
Green Globe International, Inc. (OTC: GGII) is a California-based company that makes and sells hemp cigarettes. It is placed eighth on our list of 10 cheap hemp stocks Redditors are buying. The company was founded in 1999. It has a market cap of $25 million. The firm sells the hemp cigarettes through the The Real Stuff brand. The 52-week price range of the stock is between $0.0001 and $0.1679. The average volume is 121,041,433. The headquarters of the firm is in San Diego.
In June, Green Globe International, Inc. (OTC: GGII) revealed that the Ace & Axle brand had made a purchase order of 250,000 packs of the 20 CBD hemp cigarettes the firm markets, the largest purchase order of the company so far.
On August 9, Green Globe International, Inc. (OTC: GGII) announced that it had signed a letter of intent to purchase the patent for the first paper in the world made entirely of marijuana. The firm intends to manufacture the paper and license the patent to other firms.
In addition to Philip Morris, Inc. (NYSE:PM), Altria Group, Inc. (NYSE:MO), Arena Pharmaceuticals, Inc (NASDAQ:ARNA), Scott Miracle (NYSE:SMG), and Turning Point Brands, Inc. (NYSE:TPB), Green Globe International, Inc. (OTC: GGII) is one of the hemp stocks Redditors are buying.
7. Love Hemp Group Plc (OTC: WRHLF)
Price as of August 16, 2021: $0.0320
Love Hemp Group Plc (OTC: WRHLF) is a United Kingdom-based private equity and venture capital firm. It is ranked seventh on our list of 10 cheap hemp stocks Redditors are buying. The firm was founded in 2019 and has a market cap of over $13 million. The company concentrates on investments in firms that operate in the hemp market. Some of the regions that the company targets for these investments are Europe, Africa, South America, and Asia, among others. It was formerly known as World High Life.
In March, Love Hemp Group Plc (OTC: WRHLF) reported earrings for the second half of the fiscal year, posting a revenue of £2.4 million, up more than 458% compared to the revenue over the same period of the previous year.
Last year, in August, Love Hemp Group Plc (OTC: WRHLF) had revealed that online sales of the company were at higher levels than pre-COVID, representing 62% of the total sales in July as compared to 40% in January 2020.
Philip Morris, Inc. (NYSE:PM), Altria Group, Inc. (NYSE:MO), Arena Pharmaceuticals, Inc (NASDAQ:ARNA), Scott Miracle (NYSE:SMG), and Turning Point Brands, Inc. (NYSE:TPB) are some of the hemp stocks Redditors are buying, just like Love Hemp Group Plc (OTC: WRHLF).
6. Sativa Wellness Group Inc. (OTC: SCNNF)
Price as of August 16, 2021: $0.0647
Sativa Wellness Group Inc. (OTC: SCNNF) is placed sixth on our list of 10 cheap hemp stocks Redditors are buying. The company operates from Canada and markets CBD wellness products. The company cultivates and extracts cannabinoids and sells these products to online and retail stores. It also runs 40 wellness clinics. The firm was founded in 2011. It has a market cap of $21 million and posted more than $2.7 million in revenue last year. The average volume of the stock is 78,897. The 52-week price range is between $0.03 and $0.11.
In February, Sativa Wellness Group Inc. (OTC: SCNNF) announced plans for a private placement financing of units worth C$4 million, setting a price per unit of C$0.07875. The company said it planned to use the proceeds for working capital and investment.
In earnings results for the second quarter, posted on August 12, Sativa Wellness Group Inc. (OTC: SCNNF) reported a revenue of C$6 million, up more than 828% compared to the revenue over the same period last year.
Philip Morris, Inc. (NYSE:PM), Altria Group, Inc. (NYSE:MO), Arena Pharmaceuticals, Inc (NASDAQ:ARNA), Scott Miracle (NYSE:SMG), and Turning Point Brands, Inc. (NYSE:TPB) are some of the hemp stocks Redditors are buying, alongside Sativa Wellness Group Inc. (OTC: SCNNF).
