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When most investors think of legal marijuana, they don't think of high tech or the life sciences.
We have a very different point of view.
Indeed, I've been following this field for many years because of my interest in how cannabinoids derived from marijuana can be used to treat all sorts of ailments – from cancer to arthritis to insomnia.
Plus, this whole field fits into my expertise in what you could call "frontier investing."
By that I mean, you can score massive gains in tech-related sectors by getting in just before it hits the tipping point – when it's still on the "frontier" – and goes mainstream.
Need an example? One cannabis stock I've been watching catapulted more than 170% in just the past six months.
Today, we're going to investigate why this cannabis-focused biotech stock took off like a rocket ship.
We'll also take a look at the big gains investors made in two other stocks.
And I'll show why there's still plenty more money to be made.
It's easy for me to say I'm an expert in "frontier investing."
It's harder to prove it.
But I can.
Let's start with the special report I put out in May 2010 about a group of rare-earth firms.
At the time, no one on Wall Street or in the mainstream media was talking about how badly we need these compounds for everything from missile guidance systems and smartphones to solar cells.
But just six months later, the world woke up to the story of these critical resources. I had my readers take profits on half of their position with combined gains of 350%.
Of course, this kind of special opportunity doesn't come along every day. When it does, however, you can pile up huge profits.
That was clearly the case when I began talking about how big Bitcoin was going to become back in early 2013. At the time, the encrypted digital currency was trading for roughly $100.
By the end of the year, the price had topped $1,200 – for a 1,100% gain in just a few months.
I believe something similar is happening right now as the drive toward legalizing marijuana gains steam not just in the United States, but all over the world.
As I said, my interest comes from the science side. I've read many reports on how you can take active agents out of marijuana – those cannabinoids I mentioned earlier – and create powerful drugs, without the intoxicating effects.
Don't scoff. Though federal law still makes cannabis an illegal substance, even the U.S. National Cancer Institute says cannabinoids "may relieve pain, lower inflammation, and decrease anxiety" without causing users to get high.
No wonder Ackrell Capital predicts that between 2016 and 2029, the market for marijuana will reach $100 billion – 1,308% growth.
Then again, the drive to make cannabis legal at the state level is quickly gaining ground. Voters in California, Maine, Massachusetts, and Nevada approved the use of recreational marijuana last year, bringing to 26 the number of states where using weed is legal when medical use is included.
And several more states are "on deck" this year and next.
So, the trend is clearly in favor of legalizing marijuana. And that means biotech firms with solid science and a good drug pipeline stand to gain.
Let's take a look at three of them – and how they've performed over the past six months…
Cannabis Tech Winner No. 1 – 165% Gains
This firm is developing drugs that target both cannabinoid and opioid receptors in the brain, a rare double-barreled approach to pain relief. The focus here is on a special set of pain receptors that are found outside the central nervous system (CNS), what brain researchers call the "Holy Grail" of pain relief, in an area known as kappa antagonists.
Focusing in this area, patients can avoid the hallucinations, depression, and addiction issues you often find with other opiate-based approaches. The current market for these troubled opioids stands at around $9.1 billion. You can understand why investors are so excited.
While this stock has advanced 165% over the past six months, right now, all eyes are on the upcoming release of phase 3 testing data, slated for some time in the next two to three months. Solid data could quickly lead to an application for U.S. Food and Drug Administration approval, setting the stage for even more solid gains ahead.
Cannabis Tech Winner No. 2 – 148% Gains
One of this biotech firm's drugs is a cannabis-based topical gel that can offer relief from a range of medical issues such as epilepsy and osteoarthritis.
Why a topical gel? Because the drug will not need to pass through the liver before hitting the bloodstream. That approach is leading to stunning results.
Epileptics, for example, found relief from symptoms 88% of the time, compared just 13% for a placebo. And a strong set of results for the arthritis sufferers could bring relief to more than 25 million people.
This firm is also developing a THC-based patch that goes right after the body's cannabinoid receptors. It could prove to be an effective weapon in the fight against fibromyalgia and peripheral neuropathic pain, which afflicts more than 5 million people.
It's up 148% in the past six months.
Cannabis Tech Winner No. 3 – 47% Gains
While the two firms I noted above have a clear shot at FDA approval and potentially blockbuster level of sales, this third cannabis tech winner already has a head start. Its key drug has proven to be remarkably effective in controlling seizures, which can strike sufferers up to 100 times per day.
The five years' worth of testing, which have yielded great results, mean this firm is now ready to go in front of the drug regulators. We may be looking at approval in both the United States and Europe by this summer.
Although it would take a few more quarters to really build a sales team, it looks like this one drug could exit 2018 at a $100 million quarterly sales run rate.
And that's just the start. This firm has exclusive sales rights to the drug for seven years in the United States and 10 years in Europe. This firm will prosper, whether it goes it alone to market or becomes a takeover target for a Big Pharma firm that wants in on this exciting new field.
A New Opportunity to Cash In
If you'd like to hear more about this frontier opportunity – and about some of these stocks in particular – I hope you'll join me for a special web broadcast I'll be hosting in mid-March.
This is for paid-up members of my Nova-X Report. I'll also be revealing a special bonus pick to those who listen in.
Remember: We know that the biggest gains in legal marijuana will be made by the earliest investors – the pioneers who get in while this sector is still in its "frontier" days.
That means the time to act is now.
To gain access to this special opportunity – and my complete guide to 30 of the best cannabis investment opportunities out there (The Roadmap to Marijuana Millions) – simply click here.
I look forward to talking with you soon.
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The post In Tech Investing, Look for Opportunities Still on the Frontier appeared first on Strategic Tech Investor.
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.