Marijuana Sector Outlook for 2018
- Medical Marijuana Approvals Should Increase
It is expected the US Food and Drug Administration will approve the cannabis-based epilepsy drug Epidiolex from GW Pharmaceuticals Plc. (NASDAQ:GWPH) by the end of Summer 2018.
GW Pharmaceuticals Plc is trading at: 132.00, +0.21, or +0.16% after hours: 7:37p EST on 10 January. Vs a 52 week trading rang of 92.65 -150.52 and a target of 153.75/share.
Note: that is about 140X projected EPS
And marijuana is not just a big player in the pharmaceutical industry, it is also making its way to the cryptocurrency market.
FDA approval of any drug is a huge deal not only for the company involved, but for the entire industry. It will boost GW’s stock, but it will also spread to other Marijuana stocks as confidence grows that there will be more FDA approvals coming.
Cannabis and Bitcoin
Cryptocurrencies caught fire in Y 2017. The largest, Bitcoin rallied from $966.30 to a high of $19,666.00 in mid-December before ending Wednesday at $14,480.05.
Bitcoin is based on “blockchain” technology that is not subject to any central bank, a central bookkeeper, or even arbitrary trading hours.
Aside from the advantages these things provide on the surface, they also allow for anonymity. Nobody knows your business but you.
There is already some early focus by crypto companies on cannabis, as 1 is trying to build a blockchain-based “ecosystem” for the marijuana industry, and savvy entrepreneurs will figure out how to make it work.
The Key catalyst in Y 2018 will have the biggest impact on marijuana stocks this year.
Notably in Y 2017, Canadian Prime Minister Justin Trudeau fulfilled a campaign promise to put forth a bill legalizing recreational marijuana throughout the entire country. The bill passed Canada’s Parliament and was given royal assent by the Governor General.
Great for Canada
The Big Q: How about the US?
The Big A: California’s full legalization that came on 1 January 2018, is seen by the experts to be the biggest investment catalyst in the history of legal Marijuana.
The medical cannabis market in California, the world’s 6th-largest economy if looked at on its own, already accounts for nearly 50% of the total US legal marijuana market.
And full legalization will create an immediate $7-B annual windfall for the state’s legal marijuana business, and a $20-B windfall over the next few years.
In the 1st hours of legal sales, there were huge lines at some of 100 shops that managed to get their state licenses so far.
FDA approval of cannabis drugs, state-level legalization, and federal easing of marijuana enforcement are all major factors.
And this week, Forbes reported that more banks now welcome marijuana businesses in a big change from previous policy.
About 400 banks and credit unions do business with the US marijuana industry. Most are small institutions with operations limited to states where marijuana has been legalized.
It is a great time to be a cannabis investor, do your homework and invest prudently, there big returns ahead.