Investors looking for CBD stocks to watch in 2019 may have a lot to study, which is why it is important to gain a bird’s eye view of the marijuana industry and its key players.
In this article:
- ChineseInvestors.com Inc (OTCMKTS: CIIX)
- GW Pharmaceuticals Plc. (NASDAQ: GWPH)
- Cara Therapeutics Inc (NASDAQ: CARA)
- Aphria Inc (APHQF to APHA)
- How To Invest In CBD Inside Your IRA
List of CBD Stocks to Watch in 2019
What is CBD? CBD stands for cannabidiol. It is a compound found in marijuana plants which helps relieve pain, reduce anxiety, improve sleep, and more.
ChineseInvestors.com Inc (OTCMKTS: CIIX)
Investors might wonder why and how a Chinese financial website is a marijuana company.
CIXX started in 1999 as a provider of financial analysis and data. It went public in January 2012 and has since provided financial analysis and data for the markets of China, Canada, and the U.S.
The company added another service: investing in and retailing of CBD-based nutrition and cosmetics products.
Unlike other cannabis companies, CIIX has a foothold on more than 2 billion Chinese markets. While marijuana is still illegal in China, cosmetics with CBD-based ingredients are off the hook.
Their cannabis products get proper distribution to the CIIX’s subsidiary ChineseHempOil, Inc. CIIX has introduced rice wine with cannabis infusion to the market as well.
CIIX is also developing their own app for consumers of cannabis-related products, which can provide immensely useful data and visibility for its products.
CIIX has a joint venture with Medicine Man Denver, Denver’s largest single dispensary. Their partnership with Medicine Man Denver is more than just logistics and brand awareness.
CIIX and Medicine Man Denver are developing a new intellectual property in the cannabis sector for the purpose of licensing and consulting services for marijuana companies.
As of December 14, 2018, CIIX has a market capitalization of $19.47 million and a share price of $0.58. CIIX reported a 41% increase in sales for the financial year of 2018, from $1.66 million the prior year to the current year’s $2.35 million.
GW Pharmaceuticals Plc. (NASDAQ: GWPH)
One of the few pharmaceutical stocks that focuses solely on medical cannabis, GW Pharmaceuticals is a biotechnology company that develops and produces medicine from marijuana extracts.
The company formally started operations in 1998 and has their main office in Cambridge, United Kingdom. It first went public in the London Stock Exchange in 2001 and 2013 in NASDAQ.
GW Pharmaceuticals is most known for its medicine Sativex, which is also known as Nabiximols. The botanical drug is quite convenient and painless as the medicine comes in the form of a mouth spray to alleviate pain and other symptoms of multiple sclerosis.
Since the company focuses more on research, GW has a business partnership with industry giant Bayer for the UK market, where Bayer has exclusive marketing of the medicine.
In 2011, GW agreed to license Nabiximols to Swiss pharmaceutical leader Novartis. Novartis can sell Nabiximols to Asia, Africa, and the Middle East, except for a few select countries.
Sativex is their biggest product at the moment. However, GW is currently developing another product for a different market.
Epidiolex is a CBD product that helps epilepsy patients have better control of the seizures. The CBD medicine aims to cure rare, treatment-resistant epileptic conditions.
This biotechnology company mainly concerns with the development and production of CBD products. They are also developing CBD medicines for Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms.
As of December 14, 2018, GWPH is at $119.53 per share. Current market cap is at $3.8 billion.
Cara Therapeutics Inc (NASDAQ: CARA)
Another pick for the CBD stocks to watch in 2019, Cara Therapeutics primarily deals with pain alleviation and itch treatment. This Connecticut biotech company uses the extracts from the cannabis plant to make pain relief products that patients take either orally or via injections.
One of their main products, which is currently in the clinical and development stage, is KORSUVA™ (CR845/ difelikefalin) injection. This intravenous medicine helps people who suffer from itch caused by chronic kidney disease. The company, however, is also developing an oral type of its KORSUVA medicine.
The company is also targeting general pain relief. As most pain relief medicines are opioids, which have negative side effects, the company aims to develop more pain management products, generally from marijuana.
CARA currently trades in NASDAQ for $14.05 per share as of December 14, 2018. Current market cap for the biotech company is at $554 million.
Aphria Inc (APHQF to APHA)
An important disclaimer first: Aphria is undergoing a ticker change from the original APHQF to APHA. The main company had its main listing in the Toronto Stock Exchange before as APH but is also moving to the new ticker APHA, as per News Wire.
As of December 14, 2018, Bloomberg and other financial institutions still have Aphria listed as APHQF. If an investor wants to buy stocks from this Canadian company, please ensure that you are trading the right company.
Aphria Inc is a low-cost, high-volume grower, supplier, and retailer of medical and recreational CBD.
The company has more than 300,000 square feet of production space, which they utilize to provide reasonably priced marijuana for other companies as well as theirs. Because of this competitive edge in production, APHA is one of the biggest marijuana companies, both in terms of market cap and yearly marijuana harvests.
For its medical marijuana arm, APHA partners with Canadian pharmacy retail giant Shoppers Drug Mart. This partnership moved APHA up by 30 percent, as retailing of APHA products has increased by many folds.
On the recreational side, APHA joined hands with Southern Glazer’s Wine & Spirits, a leading producer and retailer of beverages. As one of North America’s largest distributor of spirits, Southern Glazer’s Wine and Spirits provides a channel and increased brand awareness through its subsidiary Great North Distributors.
APHA is also not afraid to show its financial muscles. One of Aphria’s notable acquisitions is with Nuuvera, with an offer of $670 million.
APHA has a market cap of $1.3 billion, making it one of the largest marijuana companies, financially speaking. Shares are at $5.56 as per close of business for December 14, 2018.
How To Invest In CBD Inside Your IRA
Want to learn how to invest in CBD inside your IRA? Get our free guide here!
This list of CBD stocks to watch in 2019 is definitely not exhaustive, but merely a showcase of the growing profitability of the weed revolution.
Investors who want to capitalize on the biotech industry with secondary operations in either pharmaceuticals or manufacturing can use CBD stocks as another investment choice. In the final analysis, it is up to the investor if the benefits of CBD stocks fit in with their investment philosophy.
Double-check if your retirement account allows these stocks inside your portfolio. If your IRA cannot accept CBD stocks, you can find out other great investment options.
If you are really keen on getting involved with the CBD industry through stocks, you have to be diligent and persistent. Study the market and consult with experts to make sound financial decisions.
Do you have holdings of any of these CBD stocks? What are your opinions and analysis of these companies? What other marijuana companies do you think have great potential? Let us discuss in the comments section below.
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