The 5 Best Penny Stocks to Watch for December 2019

The higher the risk, the higher the reward. Most investors have heard of this saying before. Indeed, savvy investors do not run away from risk precisely because they know that the higher their risk profile, the bigger the potential upside.

When it comes to high risk reward ratios, one of the best options available are penny stocks.

Contrary to the name, penny stocks hardly cost a penny anymore. They could cost pretty much anything under $5.

Of course, the name of the game is to take calculated and educated risks. We’ve done your homework for you by picking out the five best penny stocks to buy in 2019 in terms of risk, reward, and industry potential. These strategic picks offer a great mix of explosive industry growth, solid value proposition, and excellent market positioning. Given this combination, these stocks show quite a bit of upside potential and, given their relatively low cost, comparatively low loss exposure.

Canbiola, Inc. (OTC: CANB)

As more and more American states adopt medical marijuana laws, the public is quickly becoming fully aware of the many medical and health benefits marijuana brings to the table. There is one major catch though-to access greater health and well-being through the pot plant, users risk getting high. This is a serious drawback-especially due to the dangers of serious injury due to accidents involving operating heavy equipment or vehicles while high. This is all due to the fact that marijuana contains THC-a powerful psychotropic and psychoactive compound.

Enter hemp derivatives. This class of pot plant-derived biochemical compounds offer the same wide range of medicinal and health benefits of marijuana’s THC. The most popular of these compounds is cannabidiol or CBD for short.

CBD is currently all the rage as an alternative treatment for pain, depression, mood disorders, insomnia, anxiety, childhood epilepsy and a whole host of medical conditions. While formal research studies are few and far between thanks to the FDA classification of marijuana (and by extension, marijuana-derived compounds), there is growing scientific evidence backing up marijuana’s health benefits. The CBD industry stands poised to reap massive financial rewards once the general public warms up to CBD-the pot-based compound that doesn’t get you high.

Just how big is CBD? According to market analysis firm, The Brightfield Group, the CBD market (apart and distinct from recreational and medical marijuana verticals) will reach $22 billion by 2022. That’s how fast the CBD market is growing. Indeed, as electronic cigarettes and vaping continue to catch on in the US, these related markets can push CBD sales figures even higher.

Canbiola, Inc. is a company based in the US that specializes in the sale and development of non-psychoactive CBD products. These include oils, moisturizers, creams, vapes, chews, gel caps, isolate, water, and concentrate.

In the third quarter of 2018, Canbiola achieved a 716.64% YoY revenue growth, making it the fastest climber in the legal marijuana industry.

penny stocks to buy in 2019 look for best penny stocks to watch and trade marijuana medical technology penny stocks as top investment in 2019

  • Average volume: 3.64M
  • Market Cap: $19.087M
  • PE Ratio (TTM): N/A
  • EPS: -$0.02
  • STOCK ALERT: Click here

Canbiola is a good pick because it is well-positioned, both in terms of product line and company revenue growth, to take full advantage of the looming explosion in consumer CBD demand.

Drone Guarder, Inc. (OTC: DRNG)

Drones are not exactly new technology. Indeed, most American consumers have heard of drones before. Well, the initial media excitement about drones may have died down but drone technology has continued to mature and reach a wider range of industries.

From agriculture to film-making to property management and law enforcement and security, drone technology has continue to grow in popularity. This should not be a surprise because there are lots of industries that currently use human labor to handle tasks that could be better handled by automated flying devices like drones. Unlike humans who get tired, need health benefits, or who might go on strike, drone technology delivers results on a 24/7 basis.

Indeed, as industry after industry wake up to the tremendous savings and productivity drone technology is expected to reach an overall size of $100 billion by 2020. While a large chunk of this will be due to military drones, commercial drone sales are projected to reach $12 billion in a couple of years. Not too shabby for an industry currently associated with cheap novelty toys. Expect the industry to mature and deepen as commercial drone applications and products fetch higher prices due to their specialization.

Even in its early stages, Drone Guarder Inc. has been showing a lot of promise. This company aims to bring drone enhanced security systems to a commercial level.

In effect, they’ve been perfecting an infrared camera with a mobile app component. Basically, the Drone Guarder will immediately fly off its charging pad if the alarm goes off. The camera will then record a video of the suspicious activity, analyze it, and send notify you if there is some kind of threat.

Drone Guarder Inc. is located in London, UK. So far,

  • Average volume: 480.347M
  • Market Cap: $552.710M
  • PE Ratio (TTM): N/A
  • EPS: -$0.01
  • STOCK ALERT: Click here

We’ve selected Drone Guarder as a solid drone industry bet due to its industry specificity and technology. Just like with any tech trend, specialization is a crucial key step to greater revenue growth, profitability and vertical domination. Drone Guarder is currently in the specialization stage. Given its current stock price and market cap, Drone Guarder shows quite a bit of upside potential for investors looking for a nice reward and risk profile.

Titan Pharmaceuticals, Inc. (OTC: TTNP)

Just in case you’ve been hiding under a rock, the USA is currently in the grips of a tragic opioid addiction epidemic. As more and more Americans switch from opiod-based pharmaceutical pain management products like Oxycontin and hydrocodone, many end up switching over to illicit drugs like heroin due to the continuing legal crackdown on prescription drug abuse. Tragically, an increasing percentage of the heroin currently being sold in the streets are laced with Fentanyl-an extremely potent synthetic opioid many times more powerful than heroin.

Accordingly, overdose death rates in the United States have reached epidemic proportions. In 2016 alone, 64,000 Americans died from drug overdose-a huge proportion of these involving opioids. Clearly, there is a growing consciousness among medical practitioners to prescribe non-opioid based pain management medication.

As more and more doctors and other healthcare providers become aware of the potential slippery slope from opioid pharma prescriptions to illegal fentanyl-laced overdoses, more of these professionals are prescribing non-opioid based pain management alternatives. In 2017 alone, the global market for these alternative pain treatments is $9.9 billion. This figure is expected by industry analysts to reach $22.6 billion. This marks a whopping compounded growth rate of 19.9% in the span of five years.

With the market trend above in mind, we have selected biopharmaceutial firm, Titan Pharmaceuticals, as our preferred ‘sleeper’ penny stock pick which might be poised for quite a breakout in the future. Titan Pharmaceuticals Inc. focuses on developing proprietary therapeutics aimed at central nervous system disorders and other related conditions. They’re based on San Francisco, California.

What they’re most known for is Probuphine, an implant which slowly releases compounds used mainly for the treatment of chronic pain and opioid addiction. It was released to the market back in May 2016.

Things are looking good for Titan and they’re definitely on the fast track of living up to their name.

penny stocks to buy in 2019 look for best penny stocks to watch and trade marijuana medical technology penny stocks as top investment in 2019

  • Average volume: 9.9M
  • Market Cap: $21.106M
  • PE Ratio (TTM): N/A
  • EPS: -$0.44
  • STOCK ALERT: Click here

We are very impressed by its slow release implant technology because it not only directly addresses the common problems of easily converted slow release features of current pharma opioid-based products but it can also be used as a delivery device for non-opioid pain management compounds in the future. Given the fact that the opioid epidemic still shows no signs of calming down, we expect the medical industry to pay close attention to alternatives and methods that help them reduce the risk of opioid addiction formation and other issues.

Emerald Health Therapeutics, Inc. (OTC: EMH)

As recreational marijuana continues to gain legal acceptance in state after state in the USA, it is becoming clear that the marijuana industry is beginning to specialize among the many different consumer niches that are sure to develop as pot gains both social and legal acceptance.

While it’s easy to assume that most of the industry growth for marijuana will take the form of consumer products, it’s easy to lose sight of consumer verticals. These are market segments that appeal to different buyers based on their intention and motivation for smoking pot in the first place. Sadly, too many market observers still blindly assume that the average recreational marijuana consumer is some sort of caricature straight out of Beavis and Butthead. The reality is, there are a lot more potential pot smokers from all walks of life and backgrounds. Most of these are not exactly your stereotypical stoner. Many hold jobs, make key decisions for organizations, and are responsible for households. In other words, these are mainstream consumers who are interested in pot but aren’t being properly marketed to.

Just how big is the pot market? According to some analyst estimates the market for US marijuana is slated to hit $146.4 billion by 2025. That’s a compound annual growth rate of 34.6%. Please keep in mind that this assumes that marijuana will continue to be accepted on a state by state basis. What if the  federal position on marijuana shifts to legalization? It would not be unreasonable to think that, should that situation happen, the 34.6% CAGR of legal marijuana will, pardon the pun, go up in smoke!

Considering how big legal pot can be, we focused on picking one company that has a different ‘alternative lifestyle’ take to marijuana that isn’t off-putting to its potentially huge middle class middle America client base.

Emerald Health Therapeutics is under the umbrella of the Emerald Health Group, which is focused on developing cannabis-based products for their pharmaceutical and nutraceutical capabilities that may contribute to a patient’s wellness.

Based in Canada, they are licensed under Canada’s Access to Cannabis for Medical Purposes Regulations to produce and distribute cannabis oil and dried cannabis.

They started this company with large-scale commercialization in mind, so they partnered up with Village Farms and converted a 1.1M sq. ft. green house to a marijuana growing facility.

In addition to this, they’ve invested in agro-biotech, subsidizing a 75,000 sq. ft. indoor facility in Quebec.

penny stocks to buy in 2019 look for best penny stocks to watch and trade marijuana medical technology penny stocks as top investment in 2019

  • Average volume: 888.960k
  • Market Cap: $381.927M
  • PE Ratio (TTM): N/A
  • EPS: -$0.17
  • STOCK ALERT: Click here

Medical Marijuana, Inc. (OTC: MJNA)

Let’s face it, currently, marijuana, despite its massive recent state level legislative wins-often via voter initiatives, is quickly gaining ground, it still faces a major hurdle. While medical marijuana is already well-entrenched and continues to grow in acceptance, it still has to deal with a major issue. That’s right-both are still illegal as far as Uncle Sam is concerned.

There is still a disconnect between federal and state legislation regarding the legal status of weed. Companies that can’t navigate this legal minefield stand to see their golden pot dreams go up in bong smoke. Thankfully, there is a legal window in which medical marijuana industry players can operate in. For the longest time, there was a lot of legal confusion between the use of products from hemp plants and marijuana plants.

Generally speaking, hemp plants don’t get you high while pot plants were specifically bred for the potency of their THC content. Accordingly, the federal government classified both plants as one and the same. Thankfully, the 9th Circuit changed this.

Established in 2009, Medical Marijuana, Inc. was based in Poway, California. Currently, its headquarters is based in San Diego.

Once the 2004 Ninth Circuit Court of Appeals made the decision to stop treating hemp like it was marijuana, MMI took full advantage of that right away. Accordingly, MMI produces all sorts of products that help users cope with a wide range of symptoms.

penny stocks to buy in 2019 look for best penny stocks to watch and trade marijuana medical technology penny stocks as top investment in 2019

  • Average Volume: 9M
  • Market Cap: $331.873M
  • PE Ratio (TTM): N/A
  • EPS: -$0.09
  • STOCK ALERT: Click here

We have selected MMI as our penny stock pick because it seems uniquely poised to profit from the increasingly positive news about medical marijuana legalization throughout the US.