There are rising fears that the hype surrounding cannabis stocks has abruptly ended and the bubble is about to burst. While a reckoning is looming for an industry in which many companies sport nosebleed valuations, it is undeniable that legal marijuana is here to stay.

The latest cannabis stock sell-off has created several bargain basement investments with the potential to soar and deliver outsized returns. Here are two marijuana stocks trading at less than $5 at writing that should be on every cannabis investors radar.

The marijuana industry presents an interesting dilemma for investors.

On one hand, cannabis is expected to be among the fastest growing industries in the world over the next decade, which is a big reason behind the huge rally in marijuana stocks over the past three-plus years. Depending on your preferred source, legal weed sales could tally anywhere from $50 billion to $200 billion in about a decade's time.

Beyoncé’s husband Jay-Z entered the cannabis industry this week, announcing he’d be joining the California brand Caliva as chief brand strategist.

The biggest loser in the cannabis markets continues to be CannTrust Holdings (TSE: TRST). After Health Canada seized much of the company’s marijuana for illegally producing cannabis without having a required permit, CannTrust has been in a steady freefall over the past week, with every day the stock tumbling drastically.

Friday was no exception, as shares of the once well-respected company have fallen by almost 20 percent as the company continues to shut down its marijuana production.

The company said on Friday that it had halted all cannabis sales and shipments while Health Canada reviews it’s processing plants. Specifically, their plant in Vaughan, Ontario is suspended as regulators evaluate whether CannTrust had produced even more cannabis outside of the law.nTru

It's no secret by now that the marijuana industry is a big-money business. Having grown from $3.4 billion in legal global sales in 2014 to hit nearly $11 billion worldwide in 2018, it demonstrates just how quickly "going green" is catching on with consumers and investors.

However, there's a potentially larger growth trend contained within the cannabis movement that investors simply have to know about: Cannabidiol (CBD).

Constellation Brands (NYSE: STZ) first rocked Canopy Growth 's (NYSE: CGC) world in 2017 by buying a 9.9% stake in the Canadian cannabis producer.

A year later, Constellation made an even bigger impact with a $4 billion investment in Canopy. The big alcoholic beverage maker now has enough sway over Canopy Growth that it was able to boot founder and former CEO Bruce Linton out the door earlier this month.

It’s been an exciting two years for investors who’d picked up pot before it got hot.

For those who got in on the ground floor, you’re likely even now sitting back and feeling pretty proud of yourself for buying up a few big names before they soared. With prices reaching fever pitch back in the summer of 2018 and again in the fall, the perfect time to sell showed itself, but many investors were wary.

It’s been a rough week for Canadian cannabis producer CannTrust Holdings (TSX:TRST)(NYSE:CTST) and, of course, for its shareholders.

The Ontario-based company is the latest cannabis producer to join the list of pot companies involved in scandal. In CannTrust’s case, the company admitted before opening bell on July 8 that its Niagara greenhouse was found to be non-compliant by Health Canada. Not only that, but the company was also growing and selling cannabis out of five rooms that were unlicensed at the time but have since been fully licensed as of April.

In 2019, the vast majority of licensed cannabis producers have been losing money at a time investors were expecting the profits to start rolling in. Among those with at least $20 million in annual sales, all but a handful reported losses in the most recent quarter. 

The Public Cannabis Company Revenue Tracker at New Cannabis Ventures currently lists just seven companies in North America with operations that squeaked out a profit during their most recent quarter. Here's how the top three performers have been able to make money while their peers report accelerating losses. 

Cannabis investors banking on profitability in the second half of the year may have another thing coming: More losses at best, and maybe a surprise stack of writedowns.

Although pot stocks have enjoyed a heady start in 2019 due to global marijuana legalization efforts and the burgeoning use of CBD as a wellness product, backers are starting to judge their investments by profitability instead of hype, and patience is wearing thin. Of the five largest Canadian pot companies, only Cronos Group Inc. is expected to report adjusted net income by the final quarter of the year, according to Bloomberg data.