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While no one knows how long the coronavirus crisis will last, there are industries that continue to operate during the lockdown. That means there's plenty of opportunity to make money in this market.
Maryland Governor Larry Hogan issued a "stay at home" order the night of March 30 (Monday) in response to the coronavirus outbreak. Other states have taken similar measures.
But as many as 20 states are considering medical marijuana products "essential" during this time. That means visiting a dispensary could be a valid reason to leave your home, even if your state goes into full lockdown.
That includes the CBD industry too. In fact, two of our best CBD penny stocks to buy right now could pop more than 200% by the end of the year. It's possible the CBD industry is still on pace to reach $22 billion over three years, and these stocks are riding that trend all the way there.
Music to investor ears.
Here's our first CBD penny stock. Its products are popping up in grocery stores like Kroger Co. (NYSE: KR) and Harris Teeter, which are both open for business through the outbreak...
CBD Penny Stocks to Buy, No. 3: Medicine Man Technologies
One of the best cannabis stocks to buy right now is Medicine Man Technologies Inc. (OTCMKTS: MDCL).
This is a Denver-based marijuana consulting and business planning firm. It provides a full range of cultivation solutions to help new marijuana companies get off the ground.
Back in September 2019, the company announced it would acquire a dispensary called Roots RX. This would allow Medicine Man to supply its clients with high-quality marijuana.
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Around the same time, Medicine Man bought another Colorado-based firm, Strawberry Fields. That's brought its operations to 20 states across the U.S. as well as seven countries.
Now, with a market cap of $117 million, Medicine Man is one of the most successful seed-to-sale marijuana companies in the world.
You can buy this stock for just $1.40 today. But some analysts say it could reach $4.40 by 2025. That's 214% profit.
But this next CBD stock could jump even higher, in even less time...
CBD Penny Stocks to Buy, No. 2: CV Sciences
CV Sciences Inc. (OTCMKTS: CVSI) sells a product called PlusCBD Oil that's currently in more than 3,000 stores across the United States.
This San Diego cannabis company has been growing significantly before the 2019 product release. Its revenue doubled from $20 million to $48 million between 2017 and 2018 as the Farm Bill was passed. The Farm Bill would allow transportation of hemp across state lines, which would enable CV Sciences to distribute through thousands of locations.
In fall of last year, it released a new line of CBD products that would sell through Kroger and Harris Teeter. And now, it's in position to grow even more.
The special thing about this stock is you don't even have to go to a dispensary to buy it. The stores won't shut down, so the revenue will keep flowing. And having the entire population cooped up inside might even raise demand.
You can buy CV Sciences today for just $0.58. But analysts give it a 12-month target of $2. That's 238% profit potential.
This next one is a highly speculative play right now - mostly because the U.S. Food and Drug Administration is dragging its feet on approving its products. But once they're approved, this stock could soar more than 1,000%...
CBD Penny Stocks to Buy, No. 1
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Our next top CBD stock is Elixinol Global Ltd. (OTCMKTS: ELLXF). It does everything from CBD to medical marijuana and foods.
While the company is based in Australia, it manufactures and sells CBD all over North America, Europe, and Asia.
Last year, Elixinol expanded its Colorado facility by over 20,000 square feet. This allows the company to produce more than 20,000 bottles of CBD per day, about double what it made before.
The company also raised $50 million from investors last year to buy another 23,000 square feet.
The benefit of purchases like this has shown in revenue. From 2017 to 2019, Elixinol saw 121% sales growth.
The stock has taken a big dive in the last few months, though not because of the coronavirus. It's facing a class action suit from the FDA because the organization still has safety concerns regarding the medical use of CBD.
We don't know when the FDA will decide it has "enough" evidence of CBD's benefits, but there have been countless endorsements of CBD from celebrities and the general public alike.
As the medical marijuana industry expands, this stock could pop to $2 per share. That's more than 1,000% from its current dirt-cheap discount of $0.18.
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About the Author
Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.