Having thick skin is a necessary asset when investing in the cannabis sector. Pity the over-the-counter small investor cautiously entering the cannabis sector, either the long-time advocate or someone who knows the product well from a personal standpoint.

It is bad enough that they have to endure the stigma of the stereotypical stoner, still-questionable legality or ignorance-induced bias from observers, they also have to endure the derision of the investing world, especially long-term investors, who consider penny stocks nothing more than day-trading fodder for gamblers. Not to mention the sector also attracts opportunists who exploit its less-restrictive financial reporting requirements, juggle their books or set up outright scams.

These negative perceptions only aggravate apprehension over the volatile share prices. There are good reasons for these stereotypes, but small individual investors have little recourse for avoiding them. Many of the good companies don’t have complete control over their share prices due...