Low-Cost Pot Stocks To Consider, According To Poseidon Asset Management's Morgan Paxhia

Poseidon Asset Management co-founder and managing director Morgan Paxhia recently spoke with Benzinga about some of the top low-cost buys on the market today, including several options investors could get for well under $100 per share.

Those with limited funds to invest might want to avoid a single shot stock, he advised. Those looking for beta exposure in the U.S. market, however, may want to consider AdvisorShares Pure U.S. Cannabis ETF MSOS to offset some risk with a diversified investment.

"I think it's just good financial sense," Paxhia, an investor since the age of 12, says.

Poseidon is one-half of one of the cannabis space's longest-running investment funds. Paxhia co-runs the firm with his sister, Emily. They have invested in some of market's top names, including Aphria Inc. APHA and G.W. Pharmaceuticals PLC- ADR GWPH in 2014, as well as Parallel earlier this year.

This month, Poseidon launched its third fund, The Garden Fund, with the team that built Canopy Boulder.

Single stock investors may look to several options in Poseidon's portfolio, such as Green Thumb Industries Inc. GTBIF, Terrascend Corp. TRSSF and Ceres Acquisition Corp. CERAF (the SPAC that's expected to bring Parallel to the public sector).

Ceres, despite it not advancing on EBITDA margins yet, has strong growth potential, Paxhia says.

"They're on a really good growth trajectory versus some of these other names that are going to have to become quite inquisitive to keep their growth, or they're going to start seeing deceleration," he added.

As far as assets Poseidon isn't involved in, Paxhia highlighted Jushi Holdings Inc JUSHF, which opened its eleventh medical dispensary in Pennsylvania in early March.

There's also Columbia Care Inc. CCHWF, which received a mention for expanding its footprint into the adult-use space.

What To Consider With Limited Funds To Invest

Would-be investors with only a few hundred or a thousand dollars have several options to choose from with cannabis.

Some prefer to go with larger amounts of shares through penny and low-cost stocks. Others see the slightly higher-priced, lower share route as a better path to success.

When deciding, Paxhia says investors need to ask themselves if they are gambling or investing.

He stated that low-cost investors could find gains during relation swings. However, the opposite result is also likely.

"Some of those low price names are low price for a reason," he said, noting the downside is real for many investors. "It's part of the decision-making process of what they're trying to achieve."