A PotNetwork Special Report
Although most marijuana stocks trade over the counter —that is not on a traditional stock market and thus much more opaque to the rest of the world —there are a few that trade on the Nasdaq as well as the New York Stock Exchange (NYSE).
The Nasdaq has always been the favorite of high tech companies, and marijuana stocks sometimes fall into that category. Investors new to the cannabis stock market may find stocks traded on the Nasdaq as a good place to dip their toes into the water when it comes to trading. After all, a more well-known exchange may make you feel more comfortable when it comes to investing in marijuana stocks.
Here is a list of marijuana stocks currently trading on the Nasdaq stock exchange:
Cara Therapeutics Inc.
Cara Therapeutics Inc. (NASDAQ:CARA), is a pharmaceutical play in the marijuana stock market which currently has no cannabis drugs on the market. Their drug, CR845 was recommended a few years back by an independent data monitoring committee for postoperative pain and has shown positive results regarding treating chronic kidney disease-associated pruritus in clinical studies, according to The Motley Fool. Some recent setback has turned pot stock investors away recently, but if the company can find success, then Cara could be a long-term play cannabis investors should watch.
Cronos Group Inc.
A pure play pot stock Cronos Group Inc. (NASDAQ:CRON) (TSX-V:CRON) made headlines this year when the company became the first pure-play marijuana stock to trade on an American exchange. Envy ran through the industry as rivals Canopy Growth Corp. and Aurora Cannabis immediately took to the press and social media to float uplisting plans of their own. Unfortunately for weed stock investors, after a brief uptick share prices went down despite the groundbreaking news.
Earlier this year, Cronos announced a large bought-deal financing which the company hopes to use to fund much of its foray into the international market. Moreover, they recently joined forces with California’s top cannabis retail chain, MedMen, to bring the brand across the border to Canada, making this pot stock one to buy on the dip.
GW Pharmaceuticals, plc.
Analysts, insiders, and media pundits alike began fawning over GW Pharmaceuticals, plc (NASDAQ:GWPH) earlier this year when a Food and Drug Administration panel gave unanimous approval to the company’s drug Epidiolex, all but guaranteeing full support from the FDA by this summer. That approval finally came, sending the marijuana stock market, and the cannabis industry into a tizzy. Targeted at some of the most severe types of childhood epilepsy, Dravet and Lennox Gastaut syndromes, Epidiolex is pharmaceutical-grade cannabidiol (CBD oil) —and with an estimated cost of $25,000 per year, it comes with a “big pharma” price tag too.
As noted in an earlier article: “GW Pharmaceuticals is confident their new drug Epidiolex will receive the same warm reception as their first. Sativex is used to treat muscle spasticity, a symptom of Multiple Sclerosis (MS), and is already in Phase 3 of testing. It contains a one-to-one ratio of CBD to THC. Marketing permissions are already approved in 21 countries across the European Union. Earning FDA approval for Epidiolex was a major feat, but it is entirely too early in the game to know what happens next. If anything, GW Pharmaceuticals could start changing the way people look at CBD oil, and that would be good news for marijuana stock investors.”
Insys Therapeutics Inc.
Insys Therapeutics (NASDAQ:INSY) most significant issues stem from the fact that this pot stock’s primary focus is on opioid drugs —a losing prospect in the age of epidemics. In fact, the company has been under federal investigation for its alleged role in bribing doctors to push their drug Subsys, and typically federal investigations scare off shareholders.
The rollout of their cannabinoid-based drug Syndros has been slow, sending this potential weed stocks prices down near 35 percent over 2018. As Motley Fool recently reported, recent comments from company CEO Saeed Motahari added to investor worry when he stated that the market was declining for transmucosal immediate-release fentanyl drugs like Subsys.
With continued pressure from both the public and the federal government on all things concerning the opioid epidemic, the only thing that could spare the company, a favorable settlement concerning the investigation, seems like a long-shot.
Intec Pharma Ltd.
A company out of Jerusalem, Intec Pharma Ltd. (NASDAQ:NTEC) initiated a Phase I clinical trial of AP-CBD/THC, what it calls an Accordion Pill platform. It includes two primary cannabinoids, cannabidiol (CBD) and tetrahydrocannabinol (THC).
“The progression of AP-CBD/THC into the clinic is a significant achievement for Intec and marks a major step forward in developing a potential new therapy for pain management. It is also our first demonstration of the Accordion Pill platform for cannabinoid therapies. Moving forward, we plan to evaluate the Accordion Pill platform in several other indications where a safe, effective, prolonged and consistent cannabinoid therapy may be able to provide therapeutic benefit where other treatments have failed. We are very pleased to have initiated our Phase I trial with AP-CBD/THC,” stated Zeev Weiss, Chief Executive Officer of Intec Pharma.
Marrone Bio Innovations, Inc.
Marrone Bio Innovations (NASDAQ:MBII) is an operator in the agriculture, turf and ornamental and water treatment markets. The company deals in bio-based pest management and plant health products. Though loosely tied to the cannabis industry, last year it was announced that three of their active ingredients could legally be used on cannabis crops in California.
“We are pleased to meet the demand by the fast-growing number of cannabis growers in California and many other states,” said Dr. Pam Marrone, Founder and Chief Executive Officer, Marrone Bio Innovations at the time. “We are also currently working with industry experts around the country to develop cannabis-specific ‘special local need’ labels in states where it is currently legal to market and sell medicinal and/or adult use cannabis.”
As was written recently on this site: “Tilray may not be an official Canadian pot stock, but the cannabis company recently filed for a listing on the Nasdaq. The IPO was filed on June 20, with the company planning to share under the ticker TLRY. Unfortunately, there is no official start date for this offering as of yet. But Tilray’s reputation as one of the first medical cannabis growers to receive a license from Health Canada, and their $1.3 billion valuation, makes them a strong bet as soon as the time is right.”
Well, Tilray did finally present their IPO to the public, and boy was it a big one. As CBS News recently noted, “The Canadian startup's stock, which trades on Nasdaq, jumped nearly 32 percent to close at $22.39. Investors snapped up 9 million shares at $17 per share, at the upper end of the company's estimated range of $14 to $17.”
Keep an eye on this marijuana stock.
Zynerba Pharmaceuticals Inc.
Earlier this year ValueEngine lowered its rating of Zynerba Pharmaceuticals (NASDAQ:ZYNE) from “sell” to “strong sell.” In the fourth quarter the company reported a loss of $8.1 million; in fact, the marijuana stock recorded a loss of 60 cents per share. Worse yet, for the entire year, Zynerba’s losses fell to $32 million.
Zynerba is a risky short sell move as the stock’s volatility over the past few months —it increased to $12.8 at one time, and fell to a low of $7.98 —have it jumping all over the place. However, experts predict negative double-digit profit change in the future. Although the company may be undervalued, volatility may keep prices going down.
Volatility remains high with this marijuana stock, as does the risk with any move. Late last year Oppenheimer noted that Zynerba was a high-risk, high-reward stock, with other experts seeing some positives and some negatives for the future of their clinical trials. Pot Stock investors should keep an eye on this one in the near term.