Cannabis has some medical benefits, but it doesn't protect individuals against the novel coronavirus. Cannabis stocks haven't been protected either. The coronavirus-fueled market meltdown has caused shares of nearly every company in the cannabis industry to plunge in recent weeks.

But this sell-off has also resulted in some bargain-basement prices. Three marijuana stocks that appear to be ridiculously cheap right now are OrganiGram Holdings (OGI 2.19%), Innovative Industrial Properties (IIPR 0.28%), and Valens (VLNS)

Three cannabis leaves

Image source: Getty Images.

1. OrganiGram Holdings

OrganiGram's shares have fallen more than 50% from the highs set earlier this year. What has changed about the company's business prospects since then? Very little.

In January, OrganiGram hit a home run with its fiscal 2020 first-quarter results. The Canadian cannabis producer reported 55% quarter-over-quarter revenue growth, blowing past analysts' estimates. It also posted positive adjusted EBITDA, a feat that many of its peers only aspire to achieve. 

OrganiGram looks for even stronger sales during the rest of 2020. The company should benefit from additional retail cannabis stores in Ontario, Canada's most heavily populated province. It also should see solid sales from the country's Cannabis 2.0 market. OrganiGram has already begun shipping vape pens and plans to soon launch cannabis-infused chocolate and dissolvable powder products.

Canada's cannabis market is expected to pull in around $5 billion annually within the next few four years. OrganiGram's low cost structure and high-quality products should enable the company to succeed in this expanding market. But because of the overall stock market sell-off, OrganiGram's shares are trading at less than five times trailing-12-month sales. That's dirt cheap for this solid pot stock.

2. Innovative Industrial Properties

Innovative Industrial Properties shares are down more than 30% off the highs from earlier in 2020. The blame rests solely on the market meltdown and not on the company's business performance.

Actually, business is booming for IIP. The cannabis-focused real estate investment trust (REIT) absolutely crushed estimates with its Q4 results announced in late February. Its revenue more than tripled year over year. Its net profit more than quadrupled.

Cannabis producers continue to seek out IIP as a source for real estate capital. In just the last week, IIP signed another major sale-leaseback deal with Green Thumb Industries, one of the largest U.S.-based cannabis operators.

IIP stock now trades at a little under 21 times forward earnings. That might not seem like a bargain, but keep in mind that the company's earnings continue to skyrocket. IIP's growth prospects make its valuation quite attractive, in my view. When you throw in the company's juicy dividend yield of 5.2%, IIP looks like a no-brainer to buy right now.

3. Valens

Valens stock has dropped around 50% due to the market correction. As is the case with OrganiGram and Innovative Industrial Properties, Valens' prospects remain very good.

The company provides services for extracting cannabinoids from cannabis plants. Its customer base reads like a "who's who" of Canadian marijuana stocks and includes Canopy Growth, OrganiGram, HEXO, and Tilray

Valens recently reported outstanding Q4 results. Its revenue skyrocketed 86% quarter over quarter. The company's adjusted EBITDA came close to doubling from the previous quarter. Valens even posted a profit, making it at least temporarily the most profitable company in the Canadian cannabis industry.

The future looks bright for Valens as the Cannabis 2.0 market in Canada takes off. But its shares trade at around 9.4 times expected earnings. Valens' current share price could look like a steal in the not-too-distant future.