2018 might be the best year yet for many cannabis stocks, although, Attorney General Jeff Sessions caused some concern in the United States legal marijuana industry. Attorney General Sessions announced in January 2018 that he removed the barrier preventing federal prosecutors from pursuing marijuana cases in states that had already legalized marijuana use.
In spite of the anticipation investors in pot stocks had regarding Sessions’ intentions to fight against marijuana, concern for MMJ stocks performance was questioned.
Attorney General Sessions’ disdain for marijuana is well known. However, a large number of Americans no longer view pot consumption with contempt or scorn. In fact, nearly 70 percent of Americans think that marijuana should be legal in some form. This widespread approval by the general American public has also motivated disparate factions in the U.S. Congress to protect the legal marijuana industry, which is expected to generate $2.3 billion in state tax revenue by 2020.
Some have speculated that Attorney General Sessions’ announcement might end up being a pivotal moment in the legal marijuana industry’s evolution as a political force–and this means that marijuana stocks could become a great investment. However, whether this widespread approval of legal marijuana and its attendant nascent industry could have the clout to overcome nearly fifty years of federal drug policy remains to be seen.
Regardless, it appears pot stocks might be a great way to cash in on this booming green market.
For people interested in investing in weed stocks, there are several American companies worth considering. These companies include AbbVie, a pharmaceutical company that has already produced Marinol, a Food and Drug Administration approved cannabis-based product. Marinol has been shown to help alleviate nausea and/or vomiting in chemotherapy patients and AIDS patients.
Corbus Pharmaceuticals is another company to watch, as it is developing a cannabis-based drug, anabasum, designed to treat sclerosis and might also treat the inflammatory disease dermatomyositis.
Lastly, Scotts Miracle-Gro Company is currently developing products for cannabis growers, including pesticides for use on marijuana plants. Each of these companies offers an investment opportunity for someone interested in weed stocks.
Promising options in weed stocks extend beyond American borders.
A benefit of purchasing pot stocks outside of the American market is that the political machinations of Attorney General Jeff Sessions are highly unlikely to affect these companies.
Canadian marijuana stocks are of great interest. Top performing companies include Canopy Growth, MedReleaf, and Aurora Cannabis. These three companies have taken root in Canada’s fertile legal medical marijuana market making them excellent MMJ stocks to diversify a financial portfolio.
Although these three companies are good investments, there is one company which comes most highly recommended.
One Canadian cannabis stock in particular generating a lot of heat is GW Pharmaceuticals – and its reputation is not just blowing smoke!
Unlike the other companies listed above, GW Pharmaceuticals has the greatest potential as a long-term marijuana stock investment. Canada is scheduled to legalize recreational marijuana in July 2018. When that occurs, marijuana will likely become a widely, legally consumed commodity.
Some are predicting that Canadian weed stocks will experience significant gains during 2018.
The new reality in Canada will become clear: marijuana, now a legal commodity, will be subject to supply and demand. Thus, the companies that produce marijuana products, not to mention their pot stocks, will perform very well. Of course, supply will likely catch up to demand; stocks that carry valuations based on these expectations of rapid growth will plummet.
These stocks might not have moats. Nevertheless, GW Pharmaceuticals is predicted by some to have a pretty strong moat for its drug Epidiolex. This drug obtained “orphan designation” in the United States and Europe, giving Epidiolex seven years of exclusivity in the United States. Additionally, if Epidiolex gets a pediatric, this designation gives it an additional six months extension. In Europe, orphan drug designation gives Epidiolex ten years of exclusivity, with the potential of another two years in the case of pediatric extension.
Even more factors bolster GW Pharmaceuticals’ forecast as a high performing cannabis stock.
GW Pharmaceuticals has done an exceptional job in pursuing an aggressive patent strategy for cannabidiol (CBD) Epidiolex, as well as other pipeline drug candidates. So far, GW Pharmaceuticals has won three U.S. patents and the company expects several major decisions on U.S. patent applications in the first half of 2018 alone.
A strong launch for Epidiolex should put GW Pharmaceuticals in solid financial shape within the next couple of years. This would allow GW Pharmaceuticals to earmark money for development of more drug candidates, further strengthening its future as a company. These are good factors to consider if you want to invest in companies that offer marijuana stocks.
There is no way to truly predict the future of a company. However, Canadian company GW Pharmaceuticals seems to have a promising future. For long-term investors considering pot stocks, GW Pharmaceuticals is a good company to consider.
(For more information about Canadian pot stocks, read O, Canada! Looking North of the Border for Pot Investment Opportunities.)