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Four Marijuana Stocks That Make Good Investments

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July 13, 2017 – Comments (0) | RELATED TICKERS: TAX

As more and more states permit medical marijuana or legalize marijuana, companies are seeing the profit potential. Therefore, businesses are going public to jump on the marijuana bandwagon. Investors are always looking for the hot trends on the stock market. That is why many of them are turning to marijuana stocks. Last year, the legal cannabis market expanded 17 percent to $5.4 billion, with the industry expected to clock another 25 percent increase this year, to reach $6.7 billion, according to ArcView Market Research. Check out these great investment opportunities.


AbbVie -- Investors know that AbbVie have been gobbling up cancer companies Pharmacyclics and Stemcentrix. It also owns the patent for Humira, an arthritis drug, which is about to lose its patent. However, AbbVie also owns Marinol, a synthetic cannabinoids-base drug. The synthetic marijuana drug has received Food and Drug Administration approval. It treats nausea and vomiting from chemotherapy. It also restores hunger in AIDS patients. The drug is not a cash cow yet, but legalization can tip the scales into high revenues. The stock’s 3.68 percent dividend yield makes the stock a good pick for investors.

Cara Therapeutics -- This biopharmaceutical company develops and markets new drugs to alleviate pain by targeting kappa opioid receptors, a human protein. Cara Therapeutics has a large portfolio of compounds focused on targeting immune cells and unique opioid analgesics than its competitors. Cara Therapeutics will win when companies move toward marijuana-based analgesics targeting opioid receptors. Cara Therapeutics is poised to be a first-mover in the new trend due to its expertise already in the industry. Analysts give the stock a strong buy recommendation, saying the stock could take a 375 percent leap.

GW Pharmaceuticals -- The British biotechnology company is allowed to grow marijuana plants by the U.K. government. It also has the rights to a cannabis-based epilepsy drug Epidiolex. The FDA gave Epidiolex orphan status for treating tuberous sclerosis complex, a rare genetic disorder that causes epilepsy in about 80 percent to 90 percent of the patients affected. Because of the orphan status, which are for drugs that treat rare diseases, gives GW Pharmaceuticals seven years to be the exclusive marketer in the United States.Those who took the drug, experienced 39 percent fewer seizures a month. In addition, the company has its Sativex drug to treat multiple sclerosis and cancer in Europe and New Zealand. GW Pharmaceuticals is positioned to ensure its cannabis-based drugs are successful.

Insys Therapeutics -- This company sells two drugs: Subsys, a sublingual Fentanyl spray for cancer pain and Syndros, a generic version of Dronabinol capsules used to treat nausea and vomiting from chemotherapy. Although the company has had some problems from disappointing sales, Insys Therapeutics is making a comeback. It is expected U.S. approval for Marinol, a marijuana-based medicine to be sold under the Syndros brand. Syndros is expected to reach $200 million in revenues. Insys Therapeutics is expect to have an earnings growth of 28 percent, about 3 percent higher than industry average.

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