It Is Still Risky To Invest In Marijuana Stocks

Contra Cramer, GW actually is a medical marijuana stock, sort of. Its whole business is based on cannabinoids, chemical compounds found in marijuana and hemp, as well as in the human body. They can also be produced synthetically. The company’s main product, Sativex, was developed to treat symptoms of multiple sclerosis, cancer, and neuropathic pain. Another product, Epidiolex, is presumably what caused Cramer to dub GW an “epilepsy company.” It’s aimed at alleviating the symptoms of that disease in children. The company is also researching drugs to treat type-2 diabetes.

GW is ” the most legit ” marijuana stock available to investors, concluded Jeff Reeves, the editor of InvestorPlace.com. But that hardly makes it a sure thing. It’s still a biotech company in its early stages.

From there, it’s a pretty steep drop-off to the other public companies that are based on marijuana. Many of them trade for pennies, and they tend to be as opaque and problematic as any other penny stock. Which, if any, are likely to emerge as real players in the pot business is impossible to tell.

To read more, visit http://features.blogs.fortune.cnn.com/2014/04/25/weed-stocks/

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