No bull market has grown bigger horns this decade than medical marijuana, and while there’s not as much big pot money to get in on in the
Not only is medical marijuana federally legalized in
The launch of the first marijuana exchange-traded fund (ETF) in
Here are 5 stocks that we think are worth watching closely in the immediate future:
#1 Canopy Growth Corp.
Currently trading with a market cap of
This company is ripe for the legalization of marijuana for recreational use. It’s just announced the licensing of new facilities at its flagship project at
Shares in Canopy Growth jumped 9 percent to
Overall, Canopy has seen its stock rise more than 386 percent in the past year, making it a real ‘unicorn’ (the favored term for start-ups hitting the billion-dollar mark).
#2 Invictus MD (IMH.V; IVITF)
This is another first-and it’s a big one: Invictus is the first licensed medical marijuana company to pay a dividend to shareholders, and it’s also well-prepared for the legalization of recreational marijuana.
We’re watching Invictus closely because it’s been smartly targeting small and mid-size companies with significant growth potential, and its strategy is all about profitability. It’s also not afraid to get down and dirty. Its owners were quietly scooping up ‘pick and shovel’ assets to lower the costs of its marijuana production, and just waiting for a big reason to draw everyone’s attention: Legalization of recreational use will do it.
And the kicker: In December they paid their shareholders
Recently, they’ve made some game-changing acquisitions valued at some
The catalysts keep mounting for this small-cap with large-cap savvy.
#3 GW Pharmaceuticals
If you’re not ready for a cannabis producer-despite the major Canadian catalysts-this cannabinoid-based drug developer is a good bet, even State side because these companies aren’t likely to be negatively affected by the Trump administration’s indications that it’s not marijuana-friendly.
GW Pharmaceuticals is a biopharmaceutical company that develops and commercializes therapeutics using a proprietary cannabinoid product platform.
This company has a
If you’re wondering why big pharma isn’t cashing in on the medical marijuana bonanza, this is why: They’re sitting on the sidelines right now. Why re-invent the wheel? They bide their time letting the ambitious small-caps spend all the cash with development and clinical trials. Once it’s all across the finish line, they will swoop in and buy them up. They won’t compete with them. They will own them-eventually, so there’s no need to dabble in this until it’s all solid. For now, though big pharma is bent on blocking progress in terms of legalization of recreational marijuana, but this is smoke and mirrors-they’re just buying time, with some working on synthetic strains of marijuana.
Given the momentum particularly in
So we start with
This drug maker offers sizzling dividends, and its growth picture looks very solid, for the first time in a long time.
What is most likely
More than any other, this company is set up with cash that will allow it to take advantage of any really good acquisition opportunities. Even amid still competition and tough patent battles,
Honorable Mentions? Of course:
- Aphria Inc.-this is the second biggest cannabis producer in
Canada, and it’s only recently been put on Canada’sindex funds.
- Aurora Cannabis Inc. – another Canadian cannabis giant-in-the-making, this company could give Canopy Growth a run for its money.
Merck( NYSE: MRK)-this drug industry leader is on the bounce-back. The some $170-billionmarket-cap company’s Keytrude drug, which won approval for treating melanoma in 2014, could reach peak annual sales of $8 billion, and the stock is up some 20 percent since Q1 2016. And it’s got more in the pipeline. Johnson & Johnson( NYSE: JNJ), Novartis ( NYSE: NVS), and Roche also all have very hot pipelines. JNJ probably has the biggest pipeline, and Novartis’ cancer portfolio is looking extremely attractive. Roche has about 150 products in development.
Knight Therapeutics(TSX: GUD) has beat analyst expectations (in Q1 2017), earning $7.9-millionon revenue of $1.8-million-compared to $300,000it reported in the same period last year. Still needs more in the development pipeline, though. (Market cap, CAD$1.45 billion)
- ProMetic Life Sciences Inc.-this
CAD$1.4 billion-market cap company has just remedied its financing overhang, and also got a boost from a $9.5-millionpurchase order.
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