Trading Strategies

Thanks to Europe, Our Biggest Legal Weed Play Could Be a "Blockbuster"

By , Defense + Tech Specialist, Money Morning@Robinson_STI

Michael A. Robinson

Just the other day, on Saturday, I ran down a pot stock "triple play" that offers investors a low-risk, easy-to-buy entry point into the fantastically lucrative world of weed investing.

These "pick-and-shovel" companies consist of some of my earliest, most prescient pot stock recommendations ever. Some of them are even included in the massive Roadmap to Marijuana Millions model portfolio my paid-up subscribers can access.

So it should come as no surprise that I hold these picks pretty close to the vest, watching them constantly.

One of the cornerstone picks there, a cannabis biotech that's returned high double- and triple-digit gains for folks following along, got some incredible news earlier this week.

It's a development so fresh it didn't make it into my roundup, so let me fill you in now…

The Company That Moved First… and Never Looked Back

I've talked a lot about "first-mover advantage" in my investing research, and it works just as well for entire companies as it does for regular investors.

Case in point: Cambridge, UK-based GW Pharmaceuticals Inc. was the first biotech to be awarded a license to grow cannabis for legal, medical research from the UK's Home Office, back in the nineties.

Breaking: Forget Jeff Sessions! These Five Canadian Pot Stocks Are Set to Skyrocket. Click Here

That's one of the reasons why GW was the first biotech to bring a cannabis-derived medicine, Sativex, to market as a U.S.- and EU-approved treatment for chronic pain, spasticity, overactive bladder, and multiple sclerosis.

Sativex's approval helped put GW Pharmaceuticals and the entire medical cannabis nexus "on the map," as it were, for the nascent weed-investing niche. The peak gains have been terrific, more than 241% since my very first recommendation in early 2014.

Now the company sports a $3.3 billion market cap, a wildly successful ADR listing on the Nasdaq, and, as far as I can tell, ceiling-less potential.

It just received "orphan drug" designation from the European Medicines Agency (EMA) to use its cannabidiol (CBD) drug, Epidiolex, for the treatment of tuberous sclerosis (TS).

Now, to be clear, this isn't the first orphan drug designation GW has under its belt. Epidiolex already has been tested on people with rare or hard-to-treat forms of epilepsy, like Lennox-Gastault and Dravet syndromes, with promising results. CBD targets the brain's receptors that control mood and brain seizures.

But this latest designation opens GW to a host of bottom-line-boosting financial incentives through the European Union.

But more importantly, TS could be another "indication" – another use – for Epidiolex. That would broaden the market – and the already impressive revenue potential.

GW has been at the head of the pack in the race to build drug franchises around the healing powers of cannabis. It's been working for years to cultivate strains that build up concentrations of CBD and tetrahydrocannabinol.

The orphan drug designation is good news for the firm, but there have been a few bumps on the road as well in recent days. On Feb. 21, GW announced it flunked its Phase 2a proof-of-concept study evaluating cannabidivarin in adult patients with focal seizures.

But the bigger news we're tracking about GW will be the U.S. Food and Drug Administration (FDA)'s decision on whether to approve Epidiolex for use in the United States. European regulators will decide on a similar approval early next year. The FDA has given itself a June 28 deadline to make that decision.

If approved, it would be the first marijuana plant-based prescription medicine approved for use in the United States. People with conditions ranging from epilepsy, to severe pain, to nausea have been waiting years – decades – for the FDA to make this move.

If permission is granted and the company obtains the exclusive rights to sell the drug for seven years domestically and 10 years in Europe, it could turn into a blockbuster for the company – and its shareholders

So you know I've got June 28 circled on my calendar.

Pot Stock Profits: $20.2 billion… that's the amount of money expected to pour into California's cannabis market following the state's recent legalization of recreational marijuana. This could spark the most profitable opportunity of 2018. For details on three tiny pot stocks that could hand you the biggest gains, click here now

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About the Author

Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.

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  • California cannabis stocks leaped at the beginning of year, now they have retrenched. I am holding losses. What to do next, Sell?

  • I also held to many pot stocks which are in negative at this moment, but I’ll just hold because I think they will rebound.

  • If someone’s making $millions with pot stocks they sure know a lot more then me! Almost all of my pot stocks have been in the red since late January. Just have a couple in the green!
    Wish Mr. Roberson could explain that and what we should be doing?

    • Those Canadian big MJ stocks are still in line for a major uptrend. Don't count any of those stocks out! Bank approval in US and Canadian rec legal are two major catalyst.

  • I'm holding losses on the recommended U.S. pot stocks as well. Hold or sell and get into the Canadian stocks?

    • The Canadian cannabis stocks are down also from this correction. It happens north of the border as well as in the US. With all the activity happening, we should see some relief shortly. The tariff issue and the Free Trade Agreement has to be settled or we all may be in for some more surprises.

  • More BLAH BLAH BLAH and no information we can use.
    Its obvious the people making the money here are the BLAH BLAH BLAH.
    Shut up already click here click click click BLAH BLAH BLAH.
    Send us more money subscribe here subscribe there BLAH BLAH BLAH.
    Nothing here but more LIP Service BLAH BLAH BLAH Click click click.

    • I think all these replies are screened too heavily as mine NEVER make it through. They only post the items they want you to read so I agree with you on this BS. The great gains they post are all after the fact so they can pat themselves on the back & maybe you will spend more money & buy another subscription. Then every new program that they develop once again is a new subscription. They do not have to buy stocks with the revenue generated from selling you another subscription.

  • All weed stocks are down following the pull back. However I bought the report and bought some of the stocks... some are down but my best buy is still up 26%.
    Try TWMJF. Or look into WEED etf for Canada. Good luck.ted

  • DON'T SELL YOUR POT STOCKS!! If you invested in growing companies you did it right. This is a volatile market right now as new markets are coming online and companies are still trying to expand production and not all the states have issued all their selling and growing permits. Give it some time. Looks to me like by about September everything I bought will be up triple digits or more. Check out POTN, one of those with the most impressive sales gains in the industry.

  • I do not know why this was taken down, but i will try again, all of these stocks posted are making me some decent money, but before you invest in them do your own homework, PTCO, DRRX, CBWTF, OGRMF, KSHB, TPB, ACBFF, POTN, TWMJF. The stock market did take a hit the last week but i think its coming around again to the positive side, its somewhat of a roller coaster at times.

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