Today, we're showing you the 10 top marijuana penny stocks to watch as we move closer to 2018. These are the 10 biggest gainers of the year, with each seeing a minimum return of 182.8%.
One of the stocks below is up an incredible 5,400%...
After the list, we'll show you one of our favorite marijuana stocks to buy for 2018. It's a dominant player in the new hydroponics sector, whose value is expected to grow to $24 billion in 2018.
|Marijuana Penny Stock||Current Stock Price||2017 Gain (as of Oct. 5)|
|Sprout Tiny Homes Inc. (OTCMKTS: STHI)||$1.10||+5,400%|
|Amfil Technologies Inc. (OTCMKTS: AMFE)||$0.18||+1,700%|
|THC Therapeutics Inc. (OTCMKTS: THCT)||$0.28||+833%|
|Players Network (OTCMKTS: PNTV)||$0.08||+700%|
|Singlepoint Inc. (OTCMKTS: SING)||$0.06||+501%|
|Skinvisible Inc. (OTCMKTS: SKVI)||$0.09||+350%|
|Nhale Inc. (OTCMKTS: NHLE)||$0.04||+300%|
|Bellerophon Therapeutics Inc. (Nasdaq: BLPH)||$1.54||+196.2%|
|22nd Century Group Inc. (NYSE MKT: XXII)||$3.10||+184.4%|
|Praetorian Property Inc. (OTCMKTS: PRRE)||$0.82||+182.8%|
The top marijuana penny stock of 2017 so far is Sprout Tiny Homes Inc., a Colorado construction company that builds both cannabis greenhouse facilities and small, energy-efficient "tiny homes." These are often up to 400 square feet and are attractive for their affordability, environmental efficiency, and simplicity.
The STHI stock price exploded 12,400%, from $0.02 to $2.50, during Q1 alone after the company received approval to build a 200-tiny-home community in Salida, Colo. This community is expected to be the United States' biggest tiny home development.
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Although Sprout Tiny Homes stock has seen a quadruple-digit gain this year, we don't recommend buying shares right now. Our Money Morning experts look for stocks that are set for gains ahead of them rather than behind them.
Today, Money Morning Director of Technology & Venture Capital Research - and marijuana research expert - Michael A. Robinson is recommending a marijuana stock poised to rally in 2018.
Although his recommendation isn't a penny stock, the company is considered the leading pioneer of the marijuana industry's fastest-growing sector - hydroponics.
Hydroponics involves growing cannabis in nutrient- and mineral-rich water. This method has revolutionized the marijuana industry since it doesn't use soil, which has traditionally been critical to the cultivation process.
"This means no mess and, more importantly, no pesticides," Robinson explained. "That's a key consideration for green consumers."
Research firm Manifest Mind reports the value of all hydroponically grown plants was $19.95 billion in 2015. That value is expected to rise 20.3% to $24 billion in 2018.
Michael's pick - which traditionally sells lawn and garden products - was one of the first companies to make a bet on the hydroponics sector's growth. It bought a hydroponics firm two years ago, in what was then the company's most expensive acquisition in 17 years.
While media outlets called the acquisition "controversial," Michael's recommendation has been making a killing ever since. Bloomberg reports this company's revenue from the hydroponics sector alone could grow 300% over the next few years.
Here's Michael's marijuana stock pick...
The Best Marijuana Stock to Buy as the Hydroponics Sector Explodes
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Michael recommends Scotts Miracle-Gro Co. (NYSE: SMG) as the best way to profit from the growing hydroponics sector.
Scotts Miracle-Gro has long been known for selling a wide variety of garden products. The uses for its line of products have included insect control, lawn fertilization, gardening, and landscaping.
But the company has pushed into the marijuana industry in recent years, particularly in 2015, when it made a big acquisition...
On April 3, 2015, Scotts announced it would acquire General Hydroponics - a leading innovator in the hydroponics field for 40 years - for $130 million. This marked Scotts' largest acquisition since 1998, when it bought European garden company Rhone-Poulenc Jardin for $147.5 million.
Scotts buying General Hydroponics is a way to create a new revenue stream, which could grow as hydroponics becomes more mainstream.
"Scotts CEO Jim Hagedorn sees the purchase as just the first of several moves, all aimed toward the goal of creating a $1 billion yearly business," Michael said. "That's a nice addition for a business that currently generates around $3 billion in sales."
SMG stock also offers a competitive dividend of $0.53 per share (2.19% yield). The company has raised its payout every year since 2010, when it was just $0.13. You won't find many "marijuana stocks" that pay any dividend at all.
The SMG dividend is better than close peers Central Garden & Pet Co. (Nasdaq: CENT) and Andersons Inc. (Nasdaq: ANDE). Central Garden doesn't offer a dividend, while Andersons only pays $0.16 per share for a 1.86% yield.
The Bottom Line: Our list of top marijuana penny stocks shows just how explosively profitable these tiny companies can be. However, we advise against buying any of the stocks on the list, since their huge gains are behind them. If you're willing to pay more than the typical penny stock cutoff of $5, Scotts Miracle-Gro is the best marijuana stock to buy right now. Its dominance in the rapidly growing hydroponics sector makes it a prime way to profit from the overall marijuana industry's growth.
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