There is no doubt that the Medical Marijuana Sector is currently one of the HOTTEST sectors on the market today. Why is that?
With more and more States legalizing medical usage and relaxing existing laws, Medical Marijuana is widely becoming an accepted alternative to treating diseases from Cancer to Parkinson’s and more – in turn creating a new Multi-Billion Dollar Industry.
There are currently 29 states which have legalized Medical Marijuana usage with many more pending legislation. But that’s just the tip of the iceburg….
In late 2012, Colorado and Washington became the first states to legalize marijuana for recreational use, setting off a firestorm in the markets as investors rushed into Marijuana-related stocks at record pace!
In 2014, Oregon, Washington DC, and Alaska also voted for full legalization while 2016 saw the 6th Largest Economy in the World (if it were a country) – California, along with Maine, Nevada, and Massachusetts legalize recreational use!
MORE HERE: https://epicstockpicks.com/medical/?gclid=CjwKCAjwwZrmBRA7EiwA4iMzBFlcF_TCYgJDEhiosucrPMrtDlZkKcTbE1VZulgGZ9LdF_-mGg0NaRoCAGcQAvD_BwE
Thanks to: https://epicstockpicks.com
Global CBD sales could grow at a compound annual rate of 147% through 2022.
Sean Williams (TMFUltraLong) Mar 30, 2019 at 10:06AM
At the moment, there's simply no industry hotter than marijuana. This year alone, global sales of legal cannabis are expected to rocket higher by 38% to $16.9 billion, with legalized countries seeing higher consumer demand, and a steady stream of new markets waving the green flag on weed.
But marijuana itself is a broad-based industry, and there are numerous subcategories and niches that could grow at an even faster pace than the overall industry over the next five to 10 years. One example is the cannabidiol (CBD) products industry.
Vials of cannabidiol oil. Image source: Getty Images.
The CBD craze takes shape
CBD is the nonpsychoactive cannabinoid (i.e., it won't get you high) that's best known for its perceived medical benefits. According to a research report from the Brightfield Group, global CBD sales are expected to soar from $591 million in 2018 to $22 billion by 2022. That's a compound annual growth rate of 147%, which would run circles around the overall pot industry's growth rate over the same period.
The allure of CBD products is the aforementioned potential for medical benefits. In terms of conclusive evidence, the only certainty we have right now is that GW Pharmaceuticals' (NASDAQ:GWPH) Epidiolex, an oral CBD formulation, works to treat two rare forms of childhood-onset epilepsy. GW Pharmaceuticals lead drug became the first cannabis-derived therapy approved by the Food and Drug Administration (FDA) in June 2018 after it demonstrated a statistically significant reduction in seizure frequency relative to placebo in multiple late-stage trials. In fact, GW Pharmaceuticals' work on cannabinoids may incite change, at least in the way CBD is viewed, at the federal level.
The remaining medical claims on CBD are pure conjecture at this point. However, there has been university-level evidence via studies that CBD can be beneficial for glaucoma, pain management, anxiety, and a host of other ailments.
Since they do not get the user high, products containing CBD are also more likely to be tried by consumers. This is a good thing, because CBD extracts -- and really all forms of alternative consumption options -- bear a higher price point than traditional dried cannabis flower. In this instance, a higher price point does indeed translate into a juicier margin for CBD companies.
Hemp plants at a farm. Image source: Getty Images.
Three CBD stocks for investors to consider
So, what's the smartest and safest way to play the CBD craze, you ask? Here are three companies -- one director player, one ancillary player, and one at an arm's distance -- that could be worth a closer look.
Check out the latest earnings call transcripts for CVS and other companies we cover.
Charlotte's Web Holdings
The most direct (but still reasonably safe) way to play the burgeoning CBD industry is by considering hemp-derived CBD producer and distributor Charlotte's Web Holdings (NASDAQOTH:CWBHF).
I believe it's important here to note the distinction between cannabis-extracted CBD and hemp-extracted CBD. With the passage of the Farm Bill in December, hemp and hemp-derived CBD products became legal throughout the United States, with the exception of adding any sort of CBD to food and beverages, which are still regulated by the FDA. Cannabis-derived CBD is still illegal at the federal level. What Charlotte's Web has been and will continue to be focused on is hemp-derived CBD oils.
Before the Farm Bill's passage, Charlotte's Web had its hemp-based CBD products in more than 3,600 retailers in the United States. Following its passage, the company should have no trouble increasing its retail presence. Nor should it have any issue passing along higher price points to consumers or retailers given the buzz surrounding CBD products.
Despite being a direct player, Charlotte's Web is considered safe in my view because it's one of just a small handful of pot stocks that are profitable on an operating basis. This is a company that's been profitable without the assistance of one-time benefits for more than a year, and appears to be on track for sales growth of more than 120% in 2019. It's unquestionably the easiest way to give your portfolio CBD exposure.
Image source: Getty Images.
Then again, a middle-of-the-road approach might be more appealing to some investors. If that's the case, I'd steer you toward taking a closer look at KushCo Holdings (NASDAQOTH:KSHB).
KushCo is probably best known for providing packaging and branding solutions to more than 5,000 marijuana growers worldwide. Yes, this would include packaging dried cannabis flower, but it may also entail packaging and branding solutions for alternative consumption options, including those that contain high concentrations of CBD. Although KushCo isn't the only company involved in the packaging space for the weed industry, it's easily the most recognized, and it's been ramping up agreements with major producers to supply packaging and branding solutions for years to come.
In addition, KushCo's acquisition of Summit Innovations in 2018 moved the company into the production of hydrocarbon gases and solvents. The former are used for the production of cannabis oils, whereas the latter are necessary for the manufacture of cannabis concentrates. The real allure here would be the now-crucial role KushCo plays in supplying hydrocarbon gas for oil production. Cannabis oils are mostly rich in CBD, and in the early going, they've been incredibly popular with consumers throughout North America.
The icing on the cake here is that, as an ancillary player, KushCo is racking up quite a bit of revenue. According to Wall Street, this is a company angling for more than $200 million in sales by 2020. That's pretty inexpensive when you consider that its current market cap is only $505 million.
Lastly, should you want to dip your toes into the pond, but would prefer waiting for the temperature of the water to cool down a bit before diving in, you might consider America's largest pharmacy chain, CVS Health (NYSE:CVS), as a possible safe CBD stock to buy.
To be clear, we're talking about a completely different spectrum of CBD play between Charlotte's Web and CVS Health. Charlotte's Web essentially relies on CBD for every cent of its sales, whereas CVS Health will only be generating a small fraction (far less than 1%) from CBD product sales. CVS Health recently announced that it would begin selling CBD products, including creams and other topicals, in approximately 800 locations in eight states. But keep in mind that CVS stores typically have thousands of front-end and over-the-counter products for sale, on top of pharmacy revenue.
Make no mistake about it, if you're buying into CVS Health, you're primarily buying into a long list of growth initiatives beyond just CBD products being in its stores. For example, you're counting on an aging U.S. population (i.e., boomers) to need higher-margin prescription medicines in the years and decades to come. You're also expecting significant cost synergies from the recently-closed acquisition of health insurer Aetna, as well as an organic growth acceleration courtesy of Aetna. But you're also betting on improved foot traffic with CBD products in stores.
With CVS Health's forward price-to-earnings ratio at a decade low, it looks to be a safe way to gain minimal exposure to the CBD movement.
It's hard to believe what this company means to the self-driving revolution
Our tech analyst was blown away when one obscure company offered him a ride in a self-driving car with no safety person behind the wheel! And no… it wasn’t Tesla or Google’s Waymo.
But the REALLY big deal for investors here is not necessarily the car, but that our analyst thinks this company has what it takes to dominate in its area and produce technology that will change the world for decades to come… mostly because of one certain characteristic.
What’s more, David Gardner also likes this company and has recommended it TWICE now to his members… along with two others in the self-driving space.
If you click the link below, we’ll tell you how to pick up your free copy of the powerful report… “Driving it Home — 3 Cash-Rich Stocks for the Driverless Revolution.”
See the stocks now
Sean Williams has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health and KushCo Holdings. The Motley Fool has a disclosure policy.
MORE HERE: https://www.fool.com/investing/2019/03/30/3-safe-stocks-to-play-the-cbd-craze.aspx
Thanks to: https://www.fool.com
By: Grace Phillips
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming green revolution.
And make no mistake – it is coming. To the tune of an estimated $80 billion.
Hemp legalization is sweeping over North America – 10 states plus Washington, D.C., have all legalized recreational versions over the last few years, and full legalization arrived in Canada in October 2018.
Legal pot is worth $50 billion for the U.S. today. And since experts have projected the U.S. industry to skyrocket to $80 billion by 2030, it’s time for investors to start paying attention.
Because whether or not you’re planning on ingesting any THC, you can’t deny the monumental investing opportunity that a potentially $80 billion industry represents.
But it’s also a relatively new industry. Untested, unproven.
And while we here at The Motley Fool love being on the cutting edge of new investing trends…
… like picking Amazon at $15.31 a share…
… Netflix at $1.85 a share…
… or Disney at $1.84 a share…
… we’ve been quiet on this growing industry for a while.
Because a game-changing deal just went down between the Ontario government and a powerhouse Canadian company.
And that company – which now has the opportunity to rake in profits from the $7 billion Canadian hemp industry AND potentially the $80 billion US hemp industry – is no stranger to us here at The Motley Fool.
Because we’ve actually recommended this stock before… for completely different reasons. Take a look at how it’s done since we rec’d it to our members:
This Canadian powerhouse has locked in key partnerships with behemoths like Facebook, Amazon, and now the Ontario government.
And even with all that, the company’s CEO declared that he thinks they’re only 2-3% into what this company could eventually become.
We here at The Motley Fool are convinced we’re only in the VERY early days of this company’s trajectory.
Which means there could still be boatloads more profit to be had for in-the-know investors who are prepared to take action.
Now, I don’t like to brag… but we here at The Motley Fool have had a pretty good track record of picking trends before they get big. Take a look at a few of the companies we picked to dominate their field:
If you’d invested $1,000 in each of those companies when we recommended them in Stock Advisor, you’d be sitting on $447,000 right now.
Which brings me back to this latest find.
This company’s future doesn’t hinge on pot. If all forms of THC were banned forever in the United States, we think this company would still have an incredible field of opportunity. (That’s why we recommended it in the first place.)
But now that there’s an estimated $80 billion industry emerging from the woodwork, their prospects are positively mouthwatering – and we think you’ll regret not getting invested now.
Forget penny pot stocks.
Forget untried, inexperienced hemp farms.
THIS is the company we think you should have in your portfolio if you want to position yourself wisely for the coming hemp boom.
And even though this company has had unprecedented success so far and just made a history-defining deal with the Canadian government, far fewer investors than you might expect are taking advantage of this VERY rare moment…
So, due to the urgency of this recent development, we put together a painstakingly researched report that shows you how this one stock could potentially mint its own pot millionaires.
It reveals the reasons why we think every forward-thinking investor should be paying close attention to this revolutionary new industry and what might be a potentially life-changing investment opportunity.
This report is FREE to you when you sign up for Stock Advisor today.
Simply enter your email address below to learn about the one stock we think you need in your portfolio for the coming green revolution.
MORE HERE: https://www.fool.com/ext-content/one-stock-for-the-coming-pot-boom/1150/?psource=esagglwdg0211036&campaign=sa-cannabis-boom&gclid=CjwKCAjwwZrmBRA7EiwA4iMzBB3ytkzmGYmQ7entJvpXYGip5tTL8d5IJmrGJBf1S_Fag2IW4mRM9xoCR-oQAvD_BwE&paid=9200&waid=9200&source=esagglwdg0211036&testId=cb-stock-clean&wsource=esagglwdg0211036&cellId=0
Thanks to: https://www.fool.com
Learn to Invest
Published on Jan 13, 2019
In this Marijuana Stocks video, I look at the top three marijuana stocks to invest in for 2019. I look at the Cannabis industry as a whole to see where the opportunities and then pick my three favorite Cannabis stocks for 2019.
The cannabis sector is one that is driving incredible amounts of investor interest. Over the past year, we’ve seen regulatory changes around the world that are opening the door to an emerging market that many speculate to be a massive one.
As a result, we’ve seen announcements from a countless number of publicly traded companies that they are working to get into the space, whether on the CBD side or the cannabis side. While there are several investment options in the space, there are few that have the potential to become a cornerstone in the industry.
Moreover, several stocks have seen strong gains after announcing plans to enter the space. Unfortunately, a large percentage are just blowing smoke. Without a real product, many of these companies are behind the curve and best to avoid.
Considering this, here are five cannabis and CBD stocks that stand out as real opportunities, with real products, and foundations laid that give them the potential to take a decent share of the cannabis and/or CBD market.
1. Canopy Growth
Canopy Growth Corporation CGC 4.35% is one of the most talked about stocks in the space, and for several good reasons. First and foremost, the company was one of the early adopters in the medical cannabis space in Canada. This gave the company the opportunity to build a strong foundation over years, from which it is now able to grow within the Canadian adult-use cannabis space.
In fact, Canopy Growth’s work hasn’t just attracted the attention of your standard mom and pop investor. The company was the center of one of the biggest investments made in the space; Back in 2018, Constellation Brands STZ 0.25% announced it made a CA$5 billion ($4 billion USD) investment in the company.
When making the investment, Constellation Brands pointed to more than 30 countries seeking regulatory changes for the acceptance of medical cannabis and a growing trend of recreational cannabis legalization around the world as the reasons for the investment. All of which, Constellation Brands believes, Canopy is well positioned to take advantage of.
Finally, while the company’s claim to fame has been cannabis, it is quickly moving to take advantage of the emerging CBD market in the United States. In fact, the company recently announced a partnership with Martha Stewart that will lead to various CBD-related lifestyle brands. With a strong and growing global footprint, a deep understanding of the regulatory environment in the cannabis space, and a brand that is already becoming recognized, Canopy Growth has the potential to become a long-term winner in the cannabis space.
The Cannabis Capital Conference returns to Toronto April 17-18!
2. Veritas Farms
Veritas Farms VFRM 8.64% is a lesser-known CBD play that offers quite a strong opportunity. The company was founded in 2015 and has quickly become a contender in the CBD space. The work that the company has done over the years has given it a strong foundation to take advantage of the CBD market in the United States that’s emerging as a result of the 2018 Farm Bill.
There are a few key reasons that the company is well positioned for growth within the U.S. CBD market. The first of these reasons is its location. Most of the companies that we see in cannabis and CBD are Canadian. As a result, if they want to tap into the U.S. CBD market, they will either have to partner with U.S.-based companies, deal with a complex import process, or set up shop in the United States to produce their products.
This is not a problem for VFRM. The company is headquartered in Colorado. So, import struggles or a need to set up shop, or a need to partner with a company in another country, are off of the table. Moreover, the company has dealt with and has a deep understanding for the regulatory process in this market.
Another key benefit that the company has over its competitors is that it is a seed to sale player. While there are other U.S.-based companies in the CBD space, few handle the process from seed to sale.
The company owns and operates a 140-acre production facility. It has its own clones, cultivates its own hemp, processes the hemp into high-quality CBD and uses the CBD to produce products that are represented by more than 20 skus currently on the market. This allows Veritas Farms the ability to have full control over quality as well as cut out middle-man costs associated with the purchase of hemp or CBD for use in CBD-infused products that are already being used in spas and sold in stores.
All in all, while the company is a relatively small player, it has set the foundation for one of two things to happen. First and foremost, the company could experience strong organic growth as the US CBD market emerges. With a market cap of under $50 million, combined with the foundation that it has set as a full-spectrum player in the CBD space, makes it a potential takeover target for larger players that are looking to enter this space.
3. Arcadia Biosciences
Two weeks ago, when you said Arcadia Biosciences RKDA 4.15%, no one would have thought about cannabis or CBD. The company is most well known for its work in biotechnology, developing chemicals for various markets including health care and agriculture.
On Feb. 28, Arcadia announced the establishment of Arcadia Specialty Genomics. The new company would focus on the optimization and standardization of cannabis plant content, quality, climate resistance and yield.
While the company is just stepping into the space, it is hitting the ground running. Less than a week after announcing the establishment of Arcadia Specialty Genomics, the company announced that it had received its first commercial hemp cultivation license. As a result, the company will soon commence its first growth of industrial hemp on a 10-acre piece of land in Hawaii.
In general, it is always suggested to advise against investing in a company that doesn’t already have a product on the market in CBD. However, RKDA is a stock in its own class. Investors have some protection as a result of the company’s strong presence in the development of various chemicals for various industries that are already on the market.
Moreover, there is no other company that has been able to find that is focused specifically on the optimization of the cannabis plant. As the demand for hemp-derived CBD- and cannabis-related products grows, it will be important for farmers to be able to identify stable yield amounts and grow climate-resistant plants without fear of a cold or heat snap killing their entire crop.
Considering the unique niche in the cannabis/CBD space in which Arcadia is working, the company’s past success in the healthcare, consumer goods, and agriculture markets, and the fast pace at which the company intends on conducting business in the cannabis/CBD space, RKDA represents a unique opportunity in the emerging cannabis/CBD space.
4. Pyramid Technology Group
Pyramid Technology Group PYTG 18.03% is another little-known CBD stock with a pretty big story. The company was founded in 1997. It’s focus has historically been on the general defense sector, where it has had success with clients like the Federal Aviation Administration, the U.S. Customs Service, and more.
On Aug. 2, 2018, Pyramid Technology Group announced that it intended on entering the CBD space as the prospect of the emerging market opened the door to strong potential growth. Since then, the company has issued 17 press releases associated with its movement in the CBD space, announcing acquisitions, partnerships, marketing campaigns and more.
Moreover, the company is already an active player in the CBD space. Through its subsidiary, LeafyWell, the company sells a wide array of branded CBD-infused products that have been developed to promote health and relaxation in both humans and pets.
With a strong history in the general defense sector providing a foundation from which to build, ambitious activity in the CBD space over the past 7 months, various products already on the market and continued work to become a leader in the space, I believe that Pyramid Technology Group is one to watch.
The Cannabis Capital Conference is coming back to Toronto! Click here to learn how you can join Tim Seymour, Jon Najarian, Alan Brochstein and many others.
5. GW Pharmaceuticals
GW Pharmaceuticals GWPH 2.76% is a well-established company in the medical cannabis space. First and foremost, the company has a product known as Sativex, which is one of the few approved cannabis-derived treatments within the European market.
Sativex is approved for commercialization in 20 other countries around the world. Moreover, the company is in the process of late stage development of the treatment as an option for MS Spasticity and Phase 2 development of the treatment as an option for neuropathic pain and other neurological symptoms. These development programs have been designed to support the potential approval of Sativex in the United States.
However, Sativex isn’t the only value proposition posed by GW Pharmaceuticals. The GW Pharmaceuticals team is also the company behind Epidolex, the first FDA-approved cannabidiol.
The treatment has been approved for use in patients with Dravet Syndrome and Lennox-Gastaut Syndrome. Both of these are severe, difficult-to-treat forms of epilepsy. The company is also in the late stage development of Epidiolex as an option for Tuberous Sclerosis and Phase 2 development of the treatment as an option for Rett Syndrome.
With a proven ability to bring treatment options through development and into commercialization, a strong pipeline of products that are yet to hit the market and development of new indications for already-approved treatments, and a global footprint in the medical cannabis space, that GWPH has the potential for growth ahead.
While there are several investment options in the cannabis and CBD space, a select few have set the foundation that provides the potential for strong growth as the global cannabis and CBD market continues to emerge. The five stocks mentioned above represent strong potential for growth ahead as we continue to see global regulatory changes that open the door to the emergence of what the experts suggest will be a multibillion dollar industry.
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
Thanks to: https://www.benzinga.com
The signs are everywhere. Outside the Village Apothecary in Woodstock, N.Y., an A-frame sign blocks the sidewalk, screaming: “We have CBD!!” On Manhattan’s 42nd Street, a new billboard shows lotions from Uncle Bud’s Hemp. In December, Congress legalized hemp and its soothing extract cannabidiol, or CBD. Now, the stock market can’t get enough of the stuff. Cannabis producers like Canopy Growth (ticker: CGC), Aurora Cannabis (ACB), and Tilray (TLRY) quickly got into hemp—the strain of cannabis that lacks the intoxicants that make marijuana more fun, but puts pot on the wrong side of federal law. The stocks of companies that have long bet their businesses on CBD have doubled in recent months, including Charlotte’s Web Holdings (CWEB.Canada or CWBHF) and GW Pharmaceuticals (GWPH).
Unfortunately, there are no bargains among hemp or marijuana stocks these days.That’s not to say CBD won’t be big. It will be. Soon, the newly unleashed cannabinoid will join other wellness additives in products ranging from skin cream to beverages to pet food. CBD-infused product sales could run into the billions of dollars, according to analysts at Cowen & Co.And like antioxidant fruits and coconut water, the health benefits of a dash of CBD are being oversold by enthusiasts like Martha Stewart and Gwyneth Paltrow. But that doesn’t mean the nostrums won’t sell. Hemp snacks and CBD tinctures will contribute sales to cannabis companies—and for many other consumer packaged-goods vendors. But while the CBD pie may be large, the individual slices are likely to be thin.“How do you differentiate among the 100, 200, 300 new CBD companies that are on every street corner?” says Joe Dowling, CEO of the CBD supplement seller CV Sciences (CVSI). “You are going to see a Wild West environment for a while.”Read our recent cover story: You’d Have to Be High to Buy American Marijuana StocksHemp’s strait-laced nature is why it’s the first member of the cannabis family to get out from under the federal Controlled Substances Act.The 2014 Farm Bill allowed states to start pilot projects to grow hemp and extract CBD. In December, the 2018 Farm Bill freed hemp and its derivatives from the shadow of the Drug Enforcement Administration. The fuel for hemp’s freedom train is demand for CBD. For years, social media circulated anecdotes on its use for calming nerves and even relieving epilepsy seizures. Those testimonials inspired seven brothers in Colorado, members of the Stanley family, to start growing high-CBD hemp in 2010. Their hemp-extract oils got national publicity in 2013, when CNN reported that five-year old Charlotte Figi’s epilepsy had improved after consuming their product. In her honor, the Stanleys named their operation Charlotte’s Web (claiming no association with the E.B. White book). The hemp extract isn’t cheap. A one-ounce bottle of Charlotte’s Web Original Formula CBD Oil can set you back $150. Sales grew smartly, hitting $70 million in 2018 from $15 million in 2016. Earnings for 2018 were $12 million, or 12 cents a share.Last August, Charlotte’s Web Holdings went public in Canada at seven Canadian dollars a share (US$5.41). Analysts reported by Sentieo forecast that sales could approach half a billion dollars in 2021, and the stock now trades for C$30. That values the Boulder, Colo. company at a generous US$2 billion, roughly the same as Cheesecake Factory (CAKE) or KB Home (KBH).Hemp’s moment is gratifying for Charlotte’s Web Chairman Joel Stanley. “It’s really growing up,” he says of the hemp business. “We’ll see it in cosmetics, food, capsules, tinctures, and drugs.” The leading contenders in this niche of the cannabis market. CANNABIS COMPANIESCompany/TickerRecent PriceMarket Value (mil)CommentCanopy Growth / CGC$43.31 $14,900 Will process hemp products in New York stateAurora Cannabis / ACB8.95 $9,000 Buying hemp processorsTilray / TLRY61.09 $5,900 Owns largest hemp food maker, Manitoba HarvestCuraleaf Holdings / CURLF10.07 $3,400 Mass marketing hemp via CVSHEXO / HEXO6.57 $1,400 Partnered with Molson Coors for cannabis drinks CBD AND HEMP-FOCUSED COMPANIESCompany/TickerRecent PriceMarket Value (mil)CommentGW Pharmaceuticals / GWPH$161.71 $4,900 FDA-approved epilepsy drugCharlotte's Web Holdings / CWBHF21.97 $2,000 Fast-growing seller of hemp oilGreen Growth Brands / GGBXF3.45 $650 Selling cosmetics and bath products in mall kiosksCV Sciences / CVSI5.86 $560 Profitable seller of hemp oil; eyeing pharmaElixinol Global / ELLXF3.59 $450 Australian contender in hemp oil Data as of April 4Sources: Bloomberg; company reports; SentieoOnline sales have been a big part of its revenue, and the company says its products are now carried in 4,000 retail locations. Other pioneers of the CBD supplement market include Australia’s Elixinol Global (ELLXF) and Las Vegas-based CV Sciences—whose PlusCBD oil is the top-selling brand in natural products shops, says CV Sciences CEO Dowling.CV Sciences sales doubled last year, to $48 million, to produce earnings of $10 million, or nine cents a share. On the OTC market, its $5.86 stock price values CV Sciences at about $550 million. That’s more than 50 times estimated earnings for 2019—similar to the multiple of Charlotte’s Web. With the Farm Bill’s blessing and CBD mania in bloom, hemp vendors have set their sights on the aisles of food, drug, and mass-merchandise retailers. Last month, the U.S. cannabis company Curaleaf Holdings (CURA.Canada or CURLF) said that its hemp products will be in more than 800 CVS Health stores in 10 states. Initially, CVS will carry lotions and transdermal patches. Green Growth Brands (GGB.Canada or GGBXF) will make its own shelf space for its Seventh Sense lotions and bath products in kiosks at nearly 100 malls run by the Simon Property Group . A fast-growing consumer category has been the “functional beverage”—spiked with caffeine, vitamins, or antioxidants. Ever since Coca-Cola spent billions to buy vitaminwater and, later, a piece of Monster Beverage (MNST). CBD promoters have been angling for a way into the beverage aisle. Canada’s cannabis producers started making their moves last year. Quebec-based HEXO (HEXO) has a joint venture with Molson Coors Brewing (TAP). Beer and wine giant Constellation Brands (STZ) sank $4 billion into Canopy Growth, the leader of the Canadian cannabis pack.
Big Money Poll: Stock Market Highs Are Making Even Bullish Money Managers Cautious Warren Buffett Is About to Face Some Tough Questions About Lagging Berkshire Hathaway Stock Royce’s Nadel and His Bias for Predictable High-Quality Stocks The Farm Bill got the DEA off the hemp industry’s back, but it left important federal questions unresolved. Those involve the Food and Drug Administration. Cannabis legalization at the state level started in response to cancer patients and others who sought the drug to treat their ailments. But federal illegality prevented the clinical testing needed to prove the medical claims for cannabis and win FDA marketing approval. In 2017, the FDA warned a number of marketers against claiming that CBD could treat Alzheimer’s disease, breast cancer, and diabetes. One of those marketers was Charlotte’s Web.Joel Stanley says any disease treatment claims were made by customers, not his company. Charlotte’s Web has cooperated with the FDA and censors customer testimonials on the company’s social media. He also says the drug approval process doesn’t suit plant extracts. “The regulatory framework that has been built around Western medicine is broken, to be honest,” he says.GW Pharmaceuticals is a cannabis company that has taken the scientific path. After placebo-controlled clinical studies reported in respected journals like the New England Journal of Medicine, the FDA approved GW’s CBD-based drug Epidiolex to treat severe childhood epilepsies—including the illness suffered by Charlotte Web’s namesake. The patented drug is highly purified and chemically consistent, says GW investor relations head Steve Schultz. “Doctors and patients desire a fully characterized pharmaceutical, and one that is supported by insurance,” Schultz says. With the monthly copay for GW’s drug at just $25, it’s hard to justify using untested, unapproved CBD products.It was an expensive road to Epidiolex’s product launch last November, and GW had 2018-year losses of $300 million on sales of $15 million. Its legions of fans on Wall Street justify GW’s $165 stock price and $5 billion market cap by forecasting blockbuster sales if Epidiolex garners approvals for adult epilepsies and other ills. Morgan Stanley analyst David Lebowitz predicts earnings of $1.67 a share in 2025 on sales of $1.5 billion and has a Street-high target price of $227.With CBD products proliferating, the FDA’s outgoing Commissioner Scott Gottleib on Wednesday disclosed the agency’s plans for regulating cannabis-derived products. Current law still bars foods to which CBD has been added, he said, but an agency working group will report this summer on pathways to legalize CBD dietary supplements. One way to shortcut rule-making, he said, might be for Congress to pass a specific law for the products. There are still some kinks for CBD’s regulators, companies, and investors to work out.Write to Bill Alpert at firstname.lastname@example.orgThanks to: https://www.barrons.com
Copyright © 2019 cannabananadaze - All Rights Reserved.