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Ever see "The Social Network"? The 2010 David Fincher flick tells the story of the early days of Facebook Inc. (NASDAQ: FB).
There's a scene when Justin Timberlake, playing Napster's visionary Sean Parker, leans across the table and says...
"A million dollars isn't cool. Know what is?"
"A billion dollars." Andrew Garfield's Eduardo Saverin finishes the thought for him.
From where I'm standing, it's mighty tough to argue with that sentiment.
If you're a CEO - or an investor, for that matter - you know you've made it when your company clocks $1 billion in annual sales.
One billion dollars: From there, the sky's the limit. You know customers will fork over anything for your products or services - while your competition trembles in their boots.
Well, one highly unique, perfectly positioned biotech I know is about to hit that all-important threshold. Crucially, as you'll see in a second, it hasn't happened yet. But when it does, this company will have done it faster than Netflix, Apple, and even Google.
And the coolest part of this is - if you've been following along since Money Morning first recommended this stock back in 2014, if you've gone the distance with us - you've made at least 10 times your money.
And if you're just finding out about this now - don't worry. You're just in time, because I think the setup here looks very promising.
But you'll have to act fast and snap up the shares before this sinks in on Wall Street...
When You Hit $1 Billion in Sales, Two Things Happen...
Of course, that billion-dollar figure is important to the company's top line, particularly when you're talking about GW Pharmaceuticals Plc. ADR (NASDAQ: GWPH). The Cambridge, England-based biotech has a product line unlike any other.
GW Pharmaceuticals had one of the UK government-issued licenses to grow cannabis. Since 2012, it's produced 100 tons of the stuff every year, and it's done incredible things with it.
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GW Pharmaceuticals is much more than a textbook pot stock, though it certainly ticks the boxes in our 2020 Pot Profit Roadmap. Yes, I firmly believe GWPH shares belong in every cannabis portfolio, but it's a true "crossover" - as in, it's crossed over into another wildly lucrative sector: biotech.
This sector is having a gangbusters year, due in large part to the herculean efforts against the global novel coronavirus pandemic. If we use the SPDR S&P Biotech ETF (NYSEArca: XBI) as a proxy for the sector at large, it's outperformed even the high-flying Nasdaq Composite by nearly 10%.
GW occupies an enviable spot in biotech, having for all intents and purposes cornered the market on cannabis research. The company's work transcends the plant itself and delves into the medicinal compounds in cannabis.
This research has given the world some completely unique marijuana-derived medicines, like Sativex; used to control multiple sclerosis, Sativex is the first natural cannabis derivative to gain market approval in any country.
Epidiolex is another product in its line. The CBD-based compound is used to treat seizures associated with Lennox-Gastaut syndrome (LGS), Dravet syndrome, and now tuberous sclerosis complex (TSC).
LGS is normally first identified in children between the ages of three to five, and it can last into adulthood.
With Dravet syndrome and TSC, infants can start experiencing seizures in their first year of life.
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GW Pharma's Epidiolex is bringing the families and children affected by these diseases something they deserve - a way to get better. In clinical studies, it reduced the frequency of seizures for individuals with Dravet syndrome by 39%. Those with LGS saw between a 37% to 42% reduction (dependent on the dosage amount).
Within two years of approval, Epidiolex sales hit $296 million. This year, GW Pharmaceuticals should, conservatively, hit $500 million, which of course puts them well on track for $1 billion in annual sales by 2021.
Think about that: This firm will join the Billion-Dollar Club faster than Netflix Inc. (NASDAQ: NFLX), Alphabet Inc. (NASDAQ: GOOGL), and even Apple Inc. (NASDAQ: AAPL). All of those companies' shares soared at least a thousand-fold once that happened.
(That GW Pharmaceuticals has already done this for early investors is beside the point.)
And thatbrings me to the other compelling reason why $1 billion really counts.
Money Beats a Path to Your Door
It's a psychologically important level, and as we all know, Wall Street is a psychological animal.
That billion-dollar level is when Wall Street starts issuing "screaming buy" recommendations.
That's the point at which institutions begin to pile in (although it's highly likely the Church of England's Church Commissioners' £8.3 billion [$10.7 billion] "socially conscious" investment fund has already moved into GW Pharmaceuticals) and bring bragging hedge fund managers along for the ride.
The thing is, once investors like you and I hear about this happening with a stock... it's likely already too late to get the best returns; the ship has sailed, the train has left the station.
But if you move on GW Pharmaceuticals before that critical psychological and top-line milestone is triggered, everyone else - the institutions, the hedge funds, the late investors - will pour money into your pocket.
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About the Author
Don Yocham is Executive Director for the National Institute of Cannabis Investors (The Institute) and Director of Cannabis Investing Research for Money Map Press. Before starting his role with the Institute, he was the Head of Private Deals for the publication Cannabis Venture Syndicate. From his first foray into the trading pits of Chicago to introducing institutional investors to entirely new markets in the early 2000s, Don has pretty much covered the entire field of investing in his 25-year career. In the depths of the financial crisis, when the typical investor had lost more than half of their money, his portfolios were up.