Pot stocks have taken an absolute shellacking in recent months. Just look at the top five Canadian cannabis producers. Shares ofCanopy Growth (NYSE: CGC) , Aurora Cannabis (NYSE: ACB) , Cronos Group (NASDAQ: CRON), Tilray (NASDAQ: TLRY) , and Aphria (NYSE: APHA) are all down more than 30% from their highs earlier in the year.

With the TSX Index just few points off its all-times highs, the economy continuing to chug along, and central bankers considering the prospects of another interest rate cut, there’s certainly plenty of reason for optimism among investors.

Yet there’s always going to be turnover in the markets.

With that in mind, here are three stocks that are at the top of my list to sell in August.

Bausch Health Companies (TSX:BHC)(NYSE:BHC) making a list of this sort may come as a surprise to some readers.

BHC stock has after all gone on to gain more than 260% since it “bottomed out” early in 2017.

HEXO Corp. (NYSEMKT:HEXO) has taken investors on a roller-coaster ride in 2019. After soaring more than 140% by late April, the stock steadily sank in the subsequent weeks and months. HEXO is currently down 45% from its highs set earlier this year.

But smart investors don't obsess over short-term volatility. Instead, they focus on the long-term prospects for the stocks that they buy. This raises a good question, though: What exactly are the long-term prospects for HEXO? Where will the company be in five years and beyond?

There are no easy answers to these questions since we can't accurately predict the future. However, here's my take on what the future might hold for HEXO.

On paper, the choice between Aphria (NYSE:APHA) and Constellation Brands (NYSE:STZ)appears to be an easy one. Constellation Brands is bigger, more profitable, and even pays a dividend. But those current statistics that work to Constellation's advantage don't reveal growth prospects. It's possible that Aphria could beat Constellation on the growth front.

Which stock is the better pick for long-term investors? Here's what you need to know about how Aphria and Constellation Brands compare.

As recently as April, 17 pure-play pot stocks -- i.e., not the Scotts Miracle-Gros and Altrias of the world that rely on cannabis as a small percentage of their sales -- were lugging around a market cap of at least $1 billion. This was the result of robust growth projections for the marijuana industry that forecast anywhere from $50 billion to $200 billion in annual worldwide sales in a decade's time.

As the market for cannabis stocks continues to mature, investors will need to keep digging deeper to uncover the real value hidden in the sector.

Here are three cannabis stocks that have opted for less-conventional routes, carving out their own unique niches within the rapidly growing market for legal cannabis.

Hexo (TSX:HEXO) inked a deal with leading alcoholic beverage maker Molson Coors Canada last year that will see the two companies join forces to work on developing a cannabis-infused recreational adult beverage product line.

But HEXO’s got grander ambitious than just that.

For years, the marijuana industry has been thriving, and the expectation is that even greener pastures await. After all, according to a recently released report from Arcview Market Research and BDS Analytics, "The State of Legal Cannabis Markets," global weed sales should grow at a better than 24% annual clip through 2024 to north of $40 billion. Mind you, this figure focuses on licensed-store pot sales, but excludes cannabinoid-based pharmaceuticals and general-store cannabinoid revenue.

Marijuana stocks have been going absolutely gangbusters for the past several years, thanks to the industry's steady march toward legalization across the globe. Several cannabis stocks, in fact, have more than quadrupled in value over the prior 36-month period. Valuations across the space, though, have started to come down in a big way. Since the start of May, for instance, the major Canadian cannabis cultivators have lost, on average, a whopping 28.8% of their value.

Imperial Brands invests $123M in Auxly for global cannabis vape plans 

When it comes to marijuana penny stocks, they are some of the best buys available on the market right now. Combining strong potential for future gains with low barrier to entry cost, marijuana penny stocks have seen many portfolios balloon over the years. But there is an important lesson that investors need to know about marijuana penny stocks: they can be fragile.

Case in point: CannTrust Holdings Inc (NYSE:CTST). CTST stock has been absolutely destroyed, falling 22% on Wednesday and down to $2.00 from $10.00 in March.