Here's the Top Marijuana Penny Stock to Watch for December 2017 (and One Pot Stock to Buy)

Investors who like watching stocks skyrocket should take a look at two of the top-performing marijuana penny stocks of the year. The second remains as our top marijuana penny stock to watch for December 2017.

Later we'll reveal our top marijuana stock to buy for 2018 that's much safer than any penny stock.

First, look at THC Therapeutics Inc. (OTCMKTS: THCT). It started the year at $0.03 per share but has since soared to $0.43, for a whopping 1,333.33% gain.

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THCT's quadruple-digit rise illustrates how profitable marijuana penny stocks can be. Marijuana is a fast-growing market due to the rapid pace of legalization. Last year, legal marijuana sales totaled $6.7 billion in North America.

And with California and Canada planning to legalize marijuana recreationally next year, 2018 is on track to be the most profitable year yet for legal marijuana businesses. ICF International projects California cannabis sales revenue alone could total $20 billion per year after recreational legalization.

That's why we want our readers to know which penny stocks are worth watching right now

Our top marijuana penny stock to watch for December is one of the best performers from November, and it still has significant upside ahead of it.

URGENT: Top Three California Pot Stocks to Watch for the Biggest Gains - Learn How to Cash In Here

However, investors must be aware that marijuana penny stocks are risky. Penny stocks are extremely volatile and should only be purchased by investors with a strong risk tolerances.

For example, Micronet Enertec Technologies Inc. (Nasdaq: MICT) has swung wildly, from as low as $0.77, to as high as $1.41, and back down to $1.04, over the past month.

That's why Money Morning Chief Investment Strategist Keith Fitz-Gerald recommends placing no more than 2% of your portfolio in penny stocks.

But for investors who can tolerate the risk, here's one of the year's top-performing marijuana pot stocks...

The Top Marijuana Penny Stock to Watch for December 2017

From Nov. 1 to 16, Cannabix Technologies Inc. (OTCMKTS: BLOZF) rose 177.7%, from $0.45 to $1.25.

Cannabix makes breathalyzers to detect marijuana, similar to breathalyzers used to test for alcohol in drivers. The product is intended to be used in law enforcement and for businesses to drug test potential hires.

top marijuana penny stock to watchThe company is upgrading its exchange listing, which will make its stock available to more investors. Currently, Cannabix is listed on Canada's CSE Composite Index. Its ticker there is BLO. But soon it will move to the Canadian Securities Exchange 25 Index, or CSE25. This index includes the largest 25 firms on the CSE Composite by market capitalization.

Now, not every marijuana stock is a penny stock, and for investors looking for a safer stock to buy that still has upside, we've got you covered. This next stock is perfectly positioned to profit from the estimated $24 billion in hydroponics equipment sales next year. The company has already climbed 20.55% since June 2017.

And it's one you won't expect...

Our Top Marijuana Stock to Buy for 2018

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Our top marijuana stock to buy for 2018 isn't a penny stock, but it's set to profit from the same forces pushing up pot penny stocks at a tiny fraction of the risk. Money Morning Director of Technology & Venture Capital Research Michael A. Robinson observes that it's also a much more stable investment.

In fact, it's set to reap gains from the cannabis industry's most important innovation, hydroponics.

Hydroponics is a method of growing plants without soil, using nutrient-rich water. Growing marijuana in this way was born out of necessity, as cultivators had to operate in secret since the plant was illegal for so long. But out of this restriction came some major advantages.

  • Hydroponics allowed marijuana growers to use less water and space compared to traditional, soil-based cultivation.
  • Cannabis cultivators also could have better control of external factors - like the amount of sunlight and nutrients - leading to greater yields that were also more potent.
  • Marijuana grows twice as fast using hydroponic equipment compared to soil-based cultivation.

Manifest Mind, a research company, indicates that total hydroponic equipment sales reached nearly $20 billion in 2015. By 2018, the value is forecast to climb more than 20%, to $24 billion.

Robinson's top marijuana stock to buy for 2018 is Scotts Miracle-Gro Co. (NYSE: SMG).

It's been betting on the growth of hydroponic marijuana cultivation for two years, when it bought California's General Hydroponics Inc. for $130 million in 2015. Then, in 2016, SMG bought Dutch lighting and hardware company Gavita for $136 million.

According to Bloomberg, revenue just from the hydroponics portion of the business could skyrocket 300% over the next several years.

You may not think of it as a pot stock at all, especially if you've walked by its gardening, insect control, and fertilization products in the local home and garden store.

But Robinson points out that the current CEO, Jim Hagedorn, has a goal of creating a business that makes $1 billion in sales per year from pot. That's a nice increase, especially given that SMG's sales now are roughly $3 billion.

SMG also pays out a $0.53 dividend per share, for a yield of 2.13%. Plus, Scotts Miracle-Gro has hiked its dividend for the past seven years, so this is a reliable income-generating stock on top of its growth potential.

Bottom Line: Looking at the expansive performance of marijuana penny stocks shows you how much some of the stocks are soaring. For a less volatile stock that is poised to reap handsome benefits from the sector, we recommend Scotts Miracle-Gro as the top marijuana stock to buy for 2018.

How to Cash In on California's Cannabis Explosion

An event of historic proportions is about to unfold in California's marijuana markets, and the amount of wealth expected to flow into this industry is record-breaking.

On Jan. 1, California will completely legalize cannabis for medical and recreational use - promising to spark a $20.2 BILLION industry in The Golden State alone.

The windfalls to be made here could be unprecedented - but only if you learn how to position yourself to profit.

Money Morning just conducted an interview with one of America's leading pot stock experts, who has already shown his followers massive gains from the previous legalization announcements.

If you're serious about learning how to make millions from the marijuana markets, it's imperative you go here now.

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