TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Marijuana stocks remain a hot place to invest and the sector continues to attract new investors every day.

With over 400 publicly traded marijuana companies, finding value in the marijuana sector is not as easy as it sounds. With so many options, it is not as easy to find companies that have massive growth potential.

To simplify this process, I have highlighted three marijuana stocks that we believe every investor needs to be watching.

Reliq Health: Shares Rally as it Continues to Execute

The two months have been very significant for Reliq Health Technologies (RHT.V) (RQHTF) and the market has recognized the importance of these recent developments.

August was a banner month for the healthcare technology firm and the company has contracts in place with a 12,000-patient home care agency and a 36,000 patient Accountable Care Organization (ACO) in Texas that are expected to generate between $17 and $23 million in recurring annual revenue in 2018.

During the last month, RHT.V has rallied almost 50% and the shares are trading at $0.20. While we are favorable on the recent rally, we continue to see upside to current levels and believe that Reliq is remarkably underappreciated.

The company’s market capitalization is well below the potential monthly revenue associated with its pilot programs and we are favorable on Reliq’s long-term outlook. We believe that Wall Street has significantly undervalued the company’s potential and expect this to change as the company continues to execute and deliver positive news to its shareholders.  

Canopy Growth: Expands into Spain

Canopy Growth Corporation (WEED.TO) (TWMJF) and its wholly-owned subsidiary Spektrum Cannabis GmbH announced a supply license agreement with Alcaliber, a leading player in the international pharmaceutical industry based in Spain.

This is a major milestone for the licensed Canadian medical marijuana producer and are favorable on the increasing leverage to international markets. Canopy has seen a favorable response from the market and we believe this response is warranted.

Alcaliber specializes in research and development, breeding and cultivation, and the extraction, purification and preparation of Narcotic Raw Materials and Active Pharmaceutical Ingredients. This agreement is reported to be the first of its kind between a Canadian cannabis company and a significant, established international pharmaceutical player. Alcaliber's involvement has the potential to meaningfully expedite Spektrum's strategic expansion in the European market.

The Spanish Agency of Medicinal Products and Medical Devices granted Alcaliber a license to cultivate, produce, manufacture, export/import, and commercialize cannabis for medical and scientific purposes.  As a result of this agreement, Canopy Growth and Spektrum will grant Alcaliber a license to use certain strains and seeds to be grown and cultivated at Alcaliber's facilities for sale worldwide.

We will keep an eye on how the shares continue to trade from its current levels and view Canopy Growth as a stock that needs to be watched.

Lexaria Bioscience: Ready to Breakout

One company we have been watching is Lexaria Bioscience (LXRP) as it is levered to the North American cannabis industry. Over the last year, Lexaria has announced several developments that have the company well positioned for growth.

During the last few months, Lexaria has improved its fundamental story through the following developments: 1) The company applied for a new patent from the U.S., 2) Lexaria has advanced its agreements and launched new businesses, 3) Expanded its reach into Asia, 4) Focused on R&D with major organizations, and 5) The company’s cash position has improved significantly and has fully funded new initiatives.

We believe that these developments have positioned the company for a major growth cycle and find the shares to be attractive at current levels. Lexaria has been trading range-bound over the last few months but we think that this about to change and want investors to be aware of this opportunity.