Canadian Marijuana Stocks Poised to Ramp Up

Canada would be the first among the Group of Seven nations to legalize recreational cannabis as Prime Minister Justin Trudeau has promised legislation could occur as soon this spring, putting a damper on the current black markets and leveling the playing field.

The licensed producers of medicinal marijuana in Canada will face a major supply and demand shortage for recreational users since the current number of patients who are seeking cannabis is already higher than what these companies can generate, said Jason Spatafora, co-founder of Marijuanastocks.com and a Miami-based trader and investor known as @WolfofWeedST on Twitter. This lack of supply will push Canadian marijuana stocks to new highs and IPOs will "see massive runs," he said.

"The current valuations have room for growth as speculation persists with a signal from PM Trudeau to create a completely legal market, which would cause public and private licensed producers to scale up their operations in order to meet a supply versus demand shortfall, the likes of which we have never seen," Spatafora said. "It's like having 30 brewery companies in the United States go public after Prohibition ended."

The recreational market could be available for consumers as early as 2018 once regulation of the products is set, creating more value for its shareholders as revenue doubles or triples.

Canada's nascent cannabis industry has the potential for large returns as their medical market is well-regulated and institutional buying has already sparked a rally in the overall sector as shares of Canopy Growth (OTCMKTS: TWMJF TSX: WEED) rose to CAD $13 a share from CAD $4 in October and Aphria Inc (CVE:APH) rose to over CAD $6 from CAD $3.40 in October.

"The investment banks are buying huge stakes at the current levels," he said. "The legalization of medical marijuana on the federal level in Canada means licensed producers were able to to take their companies public in a meaningful way compared to the U.S. companies that still won't touch the plant directly. Canada is doing what people would wish would happen in the U.S."

Since the passage of medical marijuana in Canada in 2016, the licensed producers have run into massive shortages to keep up with demand.

"The federal approval of recreational cannabis will create a rush on expansion of cultivation operations as well as much larger investments pouring into these facilities, which has already begun," Spatafora said. "Given that the approval process can take years, licensed producers will likely trade on future earnings on revenue multiples similar to Amazon."

The Canadian cannabis market has a "lot of room to run" once the legislation is approved, said Michael Berger, founder of Technical420, a Miami-based company that conducts research on cannabis stocks and a former Raymond James energy analyst. At the United Nations meeting earlier in 2017, Health Minister Jane Philpott said Canada's Liberal Party government will introduce a law in the spring to legalize recreational cannabis.

Some Producers Will Benefit More than Others

Even though recreational cannabis should be advantageous toward all licensed producers that are approved to sell it, some companies will benefit more, he said. Many licensed producers have already started expansion of current facilities or construction of new ones to prepare for the increased demand.

"Investors should focus on companies that are well capitalized, positioned and managed," Berger said. "During the last six months, over $500 million has entered the Canadian cannabis industry through bought deals and private placements as companies focus on increasing production capacity prior to the legalization of recreational cannabis."

Opportunities to invest in private companies such as the Green Organic Dutchman have generated "great interest" from investors as the company possesses one of the largest licensed land lots in Canada as well as "one of the most attractive valuations when compared to its peers," he said.

Aphria (OTCMKTS: APHQF) is focusing on a different approach as this licensed producer recently acquired 200 acres in a separate location in Canada. This is less attractive than the acquisition by the Green Organic Dutchman since the property will need its own license from Health Canada, Berger said.

Health Canada, the federal regulatory department, said a licensed medical cannabis producer which acquires a property which is adjacent to its licensed facility does not need to receive a new license. Purchasing properties elsewhere will require the approval for a new license, which could hamper the construction process.

Also read :The Future Of Commercial Cannabis Production In Canada https://goo.gl/v6UOAO

Companies Positioned for Growth

Canada's medical cannabis market is facing a supply shortage as the number of registered patients increases by double digits each month and there are currently more than 100,000 registered patients, said Berger.

Other licensed producers which have started to increase capacity include Aurora Cannabis (OTCMKTS: ACBFF CVE:ACB) and OrganiGram Holdings (OTCMKTS: OGRMF CVE:OGI). In November, Aurora broke ground on an 800,000 square foot production facility which is expected to be completed in the second half of 2017. OrganiGram recently acquired a ten-acre property adjacent to its existing facility.

"Aurora's hybrid greenhouse facility is expected to be the largest, most advanced and most automated cannabis production facility in the world," he said. "The facility will be able to produce more than 100,000 kilograms a year and it is located on 30 acres of leased land in Alberta."

Selectivity is Key

Attractive valuations and an influx of capital to capitalize on potential growth is what sets apart the various companies. 

"Some of the factors which make the Green Organic Dutchman an attractive opportunity is its strategic partnerships with renowned companies like Eaton, Ledcor and Larseen Greenhouse, its attractive valuation, its sound financial structure, its proven management team, and its best-in-class infrastructure.

"Canada's legal recreational cannabis market should be generating over $10 billion a year and will serve over three million people in 2018," Berger said.

Acknowledgement: https://goo.gl/eNwbsR

Source: https://goo.gl/Zhm6os

Medical Marijuana ETF To Debut Soon

It is often said in the exchange traded funds (ETFs) business that “all of the good ideas are taken.” Well, maybe not. The legal marijuana industry is booming in the U.S. and, as of now, there is not a dedicated ETF that investors can tap to play that trend.

That could change as ETF Managers Group (ETFMG), a New Jersey-based company that helps ETF sponsors bring their products to market, has filed plans for the Emerging AgroSphere ETF. Assuming the Emerging AgroSphere ETF comes to life, it will track an index created by BE Asset Management.

That index "tracks the performance of the exchange-listed common stock (or corresponding American Depositary Receipts (“ADRs”) or Global Depositary Receipts (“GDRs”)) of companies across the globe that (i) engage in lawful medical research intended to lead to the production of government-approved prescription drugs which utilize natural or synthetic versions of the cannabidiol CBD and other cannabis-based extracts, (ii) are involved in the production or sale of products which are legal derivatives of industrial hemp, or (iii) are involved in the supply chain of either category of company. The Fund will not invest in any companies that are focused on serving the non-medical marijuana market in the United States, Canada or any other country unless and until such time as the production and sale of non-medical marijuana becomes legal in the United States, Canada or such other country, respectively," according to a filing with the Securities and Exchange Commission (SEC).

Interested investors should note that Emerging AgroSphere ETF, again assuming it hits the market, will focus on medical marijuana. That means the ETF will not be a play on the highly lucrative recreational marijuana markets that are popping up across the U.S. Colorado is generating handsome tax revenue from legal recreational marijuana and the same could hold true for other states in the future. For example, during the 2016 elections, Californians voted to legalize marijuana for recreational use, and the largest U.S. state by population will see its first recreational pot stores open in 2018.

"Currently, 28 states plus the District of Columbia have laws and/or regulations that recognize, in one form or another, legitimate medical uses for cannabis and consumer use of cannabis in connection with medical treatment," according to the ETFMG filing with the SEC. "Even in those states in which the use of medical marijuana has been legalized, its sale and use remains a violation of federal law."

The filing did not contain a proposed ticker or expense ratio for the marijuana ETF. Those are often signs that a new ETF is close to coming to market, so it could be a while before investors can access the Emerging AgroSphere ETF.

By Todd Shriber

Source: http://www.investopedia.com/news/maybe-medical-marijuana-etf/

Best Marijuana Stocks to keep focused on, This is our Focus List

On this page you will find a list of companies that in our opinion have long term potential. Companies that have technology and business models that we feel are unique and contain potential for the long term success within the Marijuana space. Our Focus List is in our opinion the “Best Marijuana Stocks to keep focused on”. We will be updating YOU our subscribers via email, twitter, facebook & text on all developments both positive as well as negative for each company listed on our Focus List.

We are well aware that NO company especially in this sector is without its share of scrutiny. Our “Focus List” is based on our research and our opinions. HOWEVER, we DO NOT have all the answers and if ANY of YOU discover information, and or want to express your opinions or suggest a company to add and or take away we welcome your input. Please email us at info@marijuanastocks.com

*Note* We are currently hard at work to populate this page with the best marijuana stocks and information possible.  It is important to state that although we do offer advertising on this website, NO company and or “3rd party” can pay to have their company listed on our focus list. However we do reserve the right to publish a company that has advertised and or plans to advertise on this website and we will responsibly disclaim such compensation clearly for all to see.

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AbbVie Inc. (NYSE: ABBV)

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products worldwide. Their Marinol drug is FDA-approved for the treatment of nausea in patients undergoing chemotherapy and is also prescribed to AIDS patients suffering from loss of appetite. The drug is made of a synthetic form of THC and is delivered as an oral capsule.

Although the DEA still classifies marijuana as a Schedule I drug, Marinol is listed as a Schedule III drug, meaning the FDA recognizes the clinical benefits and abuse potentials are believed to be lower.

The company also offers Humira, a biologic therapy administered as a subcutaneous injection to treat autoimmune diseases; Imbruvica an oral therapy for the treatment of chronic lymphocytic leukemia; and Viekira Pak, an interferon-free therapy for adults with genotype 1 chronic hepatitis. It also provides Kaletra, an anti-HIV-1 medicine used with other anti-HIV-1 medications as a treatment that maintains viral suppression in HIV-1 patients; Norvir, a protease inhibitor indicated in combination with other antiretroviral agents to treat HIV-1; and Synagis to prevent respiratory syncytial virus infection in high risk infants. In addition, the company offers AndroGel, a testosterone replacement therapy for males diagnosed with symptomatic low testosterone; Creon, a pancreatic enzyme therapy for exocrine pancreatic insufficiency; Synthroid to treat hypothyroidism; and Lupron, a product for the palliative treatment of prostate cancer, and endometriosis and central precocious puberty, as well as for the treatment of patients with anemia. Further, it provides Duopa and Duodopa, a levodopa-carbidopa intestinal gel to treat Parkinson’s disease; Sevoflurane, an anesthesia product for human use; TriCor, Trilipix, and Niaspan to treat metabolic conditions characterized by high cholesterol and/or high triglycerides; and Zemplar to treat secondary hyperparathyroidism. The company sells its products to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from its distribution centers and public warehouses.

Aurora Cannabis Inc. (ACB.CN)  (OTC: ACBFF)

Aurora Cannabis Inc. focuses on cultivating, harvesting, and selling medical marihuana in Canada. The company is based in Vancouver, Canada. Using water from the Canadian Rocky Mountains, Aurora cannabis plants are brought to harvest in their 55,200 sq ft. facility. Their state-of-the-art facility is designed to produce the cleanest, safest medical cannabis available on the market. Focused on providing high quality medical cannabis at affordable pricing, Aurora offers patients who register with them $8/gram strain pricing, $5/gram composite pricing, a $50 cannabis credit, free shipping Canada-wide, and influence future strains and products.

Cara Therapeutics Inc. (NASDAQ: CARA)

Cara Therapeutics, Inc. is a clinical-stage biopharmaceutical company, focusing on developing and commercializing chemical entities designed to alleviate pain and pruritus by selectively targeting kappa opioid receptors in the United States. Cara is developing lead molecules that selectively modulate peripheral CB receptors without targeting CNS cannabinoid receptors. Peripheral CB receptor modulators will be initially developed as a novel therapeutic approach for neuropathic and inflammatory pain, a condition currently without consistently effective therapies. Cara’s most advanced CB compound, CR701, is currently in preclinical development.

The company is also developing cannabis-based product candidates that target the body’s peripheral nervous system. Its lead product candidate includes I.V. CR845, which is in Phase III clinical trials for the treatment of acute postoperative pain in adult patients, as well as completed Phase II clinical trials for the treatment of uremic pruritus disease, an intractable systemic itching condition which occurs among people with Chronic Kidney Disease. The company is also developing Oral CR845, which is in Phase IIa clinical trials for the treatment of moderate-to-severe acute and chronic pain. It has licensing agreements with Chong Kun Dang Pharmaceutical Corporation to develop, manufacture, and commercialize products containing CR845 in South Korea; and Maruishi Pharmaceutical Co., Ltd to develop, manufacture, and commercialize drug products containing CR845 for acute pain and uremic pruritus in Japan.

GW Pharmaceuticals plc (NASDAQ: GWPH)

GW Pharmaceuticals plc is a biopharmaceutical company that, together with its subsidiaries, engages in discovering, developing, and commercializing cannabinoid prescription medicines. It operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development. The company primarily offers Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis. It also focuses on the Phase III clinical development program of Sativex for use in the treatment of cancer pain; and Phase 2 trials in other indications, such as neuropathic pain. In addition, the company’s product pipeline includes Epidiolex, a treatment for Dravet syndrome and Lennox-Gastaut syndrome, as well as other product candidates in Phase 1 and 2 clinical development for the treatment of glioma, adult epilepsy, type-2 diabetes, and schizophrenia. In a Phase III trial for Epidiolex, the drug reduced the frequency of seizures by 39% in children with a form of epilepsy known as Dravet syndrome, compared to a 13% reduction in children who took a placebo. It operates in the United Kingdom, Europe, the United States, Canada, and Asia.

INSYS Therapeutics Inc. (NASDAQ: INSY)

Insys Therapeutics, Inc., a specialty pharmaceutical company developing and commercializing supportive care products, has two FDA-approved cannabis-based drugs and seven more drugs in the pipeline. Their Subsys is a sublingual fentanyl spray for breakthrough cancer pain in opioid-tolerant cancer patients in the United States. Its lead product candidate is Syndros, an orally administered liquid formulation of dronabinol. Syndros helps patients with anorexia symptoms related to weight loss from AIDS. The drug, which is a pharmaceutical formulation of tetrahydrocannabinol (THC), was approved by the American regulatory agency as a therapy to stimulate patients’ hunger, as well as a treatment for the nausea and vomiting that is involved with cancer chemotherapy – which is prescribed to patients who do not respond well enough to standard antiemetic (anti-vomiting) treatments. Also in development, Cannabidiol Oral Solution is a synthetic cannabidiol for childhood catastrophic epilepsy syndromes. The company is also developing other dronabinol line extensions and sublingual spray product candidates.

MassRoots Inc (OTCMKTS:( MSRT)

MassRoots is one of the largest and most active technology platforms for cannabis consumers, businesses and activists with over 900,000 registered users. It is proud to be affiliated with the leading organizations in the cannabis industry, including the ArcView Group and National Cannabis Industry Association. MassRoots has been making many strides recently with regards to increasing it’s revenue via new advertising functions for the cannabis industry as well as reducing it’s overall expenditures. As the industry expands year over year, platforms like Massroots will be providing individuals and companies avenues for advertisement as an alternative to Facebook & Google which have shunned cannabis based ads. For more information, please visit MassRoots.com/Investors.

mCig Inc. (OTC: MCIG)

mCig, Inc. manufactures, markets, and distributes electronic cigarettes, vaporizers, and accessories under the mCig and VitaCig brand name in the United States. It offers electronic cigarettes and related products through its online store mcig.org, as well as through the company’s wholesale, distributor, and retail programs. The company also provides marijuana grower services such as commercial grow room design, warehouse customization, greenhouse grows, personal home grow room units, and general marijuana business consulting.

The Scotts Miracle-Gro Company (NYSE: SMG)

The Scotts Miracle-Gro Company is most well-known for the manufacturing, marketing, and selling of their extensive line of consumer lawn and garden products worldwide. Popular brand names include  Scotts, Turf Builder, EZ Seed, Water Smart, PatchMaster, EverGreen, Miracle-Gro Patch Magic, Weedol, Pathclear, EdgeGuard, OxiClean, Miracle-Gro, Earthgro, SuperSoil, Miracle-Gro Organic Choice, Nature’s Care, Whitney Farms, EcoScraps, General Hydroponics, Scotts EcoSense, Tomcat, Roundup, and Home Defence to name a few. But CEO Jim Hagedorn is making big bets in hydroponics as he believes legal marijuana is a billion dollar opportunity and the biggest thing ever to happen to the lawn and gardening industry. The company shelled out $136 million for Gavita, a Dutch grow lighting and hardware company, and inked a deal to buy Arizona-based Botanicare, a plant nutrient and hydroponics products provider that notched about $40 million in sales. The company also invested heavily in Boulder’s AeroGrow indoor gardening company. In addition, the company bought out California’s General Hydroponics last year for $130 million.

The company also has a Scotts Lawn Service segment that offers residential and commercial lawn care, tree and shrub care, and pest control services through the periodic applications of fertilizer and control products.

Canopy Growth Corporation (CGC.V) (OTC: TWMJF)

Canopy Growth Corporation, through its subsidiaries, produces and sells medical marijuana in Canada. They operate a collection of diverse brands and curated strain variety, supported by over half a million square feet of indoor greenhouse production capacity. The company offers dry cannabis and oil products primarily under the Tweed and Bedrocan brands.  It also sells its products online. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. The company acquired Bedrocan Cannabis Corp. in 2015 for approximately $58 million. Canopy Growth is the largest producer of medical marijuana in Canada.

Zynerba Pharmaceuticals Inc. (NASDAQ: ZYNE)

Zynerba Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing proprietary synthetic cannabinoid therapeutics formulated for transdermal delivery. Its product candidates include ZYN002, which is in Phase I clinical trial for the treatment of refractory epilepsy, Fragile X syndrome, and osteoarthritis; and ZYN001 that is in preclinical stage for the treatment of fibromyalgia and peripheral neuropathic pain

Summary

The state of the marijuana market is more attractive for investors now than ever before. With the initial hype and volatility out of the way, investors can now begin looking at companies with fair or even undervalued market capitalizations. The initial wave has passed and it’s now time for round two. With several major catalysts coming up, we expect the companies mentioned on this list to progress and execute on their business plans as the overall industry expands. This industry is here to stay and we have created this Free User guide to help all interested investors get started!”

Source:http://marijuanastocks.com/content/best-marijuana-stocks-keep-focused-our-focus-list/

Nasdaq Cannabis Stocks Rally After Recreational and Medical Use Passes

Cannabis stocks listed on the Nasdaq continued to rally after voters ended prohibition and approved the recreational use of marijuana in California, Massachusetts, Maine and Nevada.

Cannabis stocks listed on the Nasdaq continued to rally on Wednesday after voters ended prohibition and approved the recreational use of marijuana in California, Massachusetts, Maine and Nevada while Arkansas, Florida and North Dakota adopted medical marijuana laws.

Arizona rejected its measure for recreational use while Montana voters approved a measure to improve access to medical marijuana providers.

"Whether they live in blue or red states, voters have spoken in an overwhelming majority that they want media and recreational marijuana," said Jason Spatafora, co-founder of Marijuanastocks.com and a Miami-based trader and investor known as @WolfofWeedST on Twitter. "One election night we witnessed not just a political shift, but a paradigm shift for cannabis where prohibition has become untenable."

Interest in cannabis-related stocks continues to increase from micro cap to Nasdaq-listed equities and will only continue its upward trend as investors should be poised for several decades of additional expansion as more states legalize either recreational or medical use and could emerge as acquisition targets.

"The legal cannabis movement scored its most significant victory yet," said Michael Berger, a former Raymond James energy analyst and founder of Technical420, a Miami-based company that conducts research on cannabis stocks. "Although the results of the election will be a turning point for the legal cannabis industry, we are only in the first inning of what will be a multi-decade growth cycle. As legalization measures continue to go into effect, market sentiment will improve for cannabis stocks and this should serve as a catalyst for many companies."

The economic impact for these states is immense - California is estimated to increase to $10 billion market by 2020, while Florida's medical market should be a $1 billion industry by 2020, he said.

"I expect the cannabis industry to be a $75 billion dollar industry by 2020," Berger said. "Although many people's estimates are below this, I take into account more than just the sale legal cannabis because the ancillary business will benefit significantly."

Several stocks have been undervalued as investors were skittish and the use of drugs produced by major cannabis-focused biopharmaceutical companies have not been widely adopted. The current options for mainstream investors in this budding sector are limited to a handful of companies listed on the Nasdaq, including GW Pharmaceuticals (GWPH) , a U.K.-based biotech company with a cannabis-based epilepsy drug; Insys Therapeutics (INSY) , a Phoenix company known for its cancer pain management drug but is developing a cannabis-based drug for the treatment of epilepsy; Cara Therapeutics (CARA) , a Shelton, Conn.-based clinical state biopharmaceutical company that develops and commercializes pain relief drugs and Zynerba Pharmaceuticals (ZYNE) , a Devon, Pa.-based company focused on developing and commercializing synthetic cannabinoid therapeutics.

Being undervalued means many of these companies such as Cara, Zynerba and GW Pharmaceuticals are also attractive acquisition targets, said Spatafora. All three companies are appealing candidates because of their intellectual property and their pipeline of current and upcoming drugs.

"The intellectual property for GW Pharmaceuticals is based on having cannabis plant-based drugs rather than synthetic alternatives and in my estimate is worth $6 billion or roughly $190 per share if bought out," he said.

Since GW Pharmaceuticals is the bellwether company of the cannabis industry and tends to benefit from positive developments in the sector, the stock could be poised for headwinds as a result from the increased market volatility.

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"We continue to view GW Pharmaceutical as the best long-term cannabis investment due to its deep pipeline of products, its successful FDA testing results, its Wall Street coverage and its valuation as its shares are trading well below the average Wall Street price target," said Berger. "We continue to view GWPH as a buy opportunity on weakness from today."

While there is less research available from analysts, some cannabis stocks listed on the OTC are also worth consideration, because they will benefit from the laws that passed in Florida, Nevada and California, Spatafora said.

Florida's adoption of medical marijuana use could be advantageous for Arcturus Growthstar Technologies (AGSTF) , which entered into a letter of intent to purchase a Florida farm that is zoned for cannabis. The state currently has six licensed producers and expansion will be needed to meet "massive demand," he said.

"They hedged on the LOI to wait and see if the law passed," Spatafora said. "The company was pretty wise in this potential acquisition because the farm already produces $2.6 million in revenue annually."

With Nevada voters approving adult use of cannabis, mCig Inc. (MCIG) , which used to specialize in lifestyle brands in the vaping and cannabinoid markets, could benefit. The company founded a construction division called Scalable Solutions geared toward the Nevada cannabis cultivation market.

Here's Why These 3 Cheap Marijuana Stocks May Quadruple in Price

Shares of these cannabis companies are ready for huge growth if November is a successful month for legalization.

Five states including California will vote on whether to legalize recreational marijuana next month, and Arkansas and Florida will vote on whether to legalize marijuana for medical purposes, which could boost stocks in the sector.

Legalization in Florida was narrowly defeated in 2014.

Over the past 30 days, the S&P 500 has fallen more than 1%, but the North American Marijuana Index increased 83%.

The stocks below are just three of the 23 constituents that form the North American Marijuana Index. These companies already have racked up market-beating gains, which will continue next month and beyond if marijuana legalization is successful.

Keep a close eye on these stocks, and be ready to buy on dips as volatile markets continue through the end of this month.

All eyes will be on California. A vote to legalize there will provide strong momentum for the other six states' legalization initiatives.

California's population comprises more than 12% of the total U.S. population. Florida is the third most populated state, with 6.3% of the population.

Successful votes in these states could lead to upsets in Arizona and Massachusetts that have encountered push-back from anti-legalization groups. The other states with marijuana legalization on their ballots are Maine and Nevada.

In partnership with rapper Snoop Dogg's Leafs brand, Canopy Growth is ready to roll out three new strains of marijuana across Canada by the end of the month.

That is exciting news for the recreational marijuana user in Canada, but what does it mean for the company's earnings? The answer decides whether investors should expect significant share price gains.

Let's look at the the three stocks.

1. Aurora Cannabis (ACBFF)
This company is one of the only producers turning a profit at $427,000 and $1.95 million in the fourth quarter last year and the first quarter, respectively.

Aurora Cannabis achieved two major milestones in the past 30 days that one would expect of a young growth stock.

First, the company's shares were moved to the Toronto Stock Exchange's Venture Exchange.

This milestone reflects "remarkably rapid operational and commercial progress," Chief Executive Terry Booth said.

Second, the company said this month that it will issue up to $25 million in convertible debt.

This offering makes Aurora Cannabis one of the best capitalized companies in the cannabis sector, Booth said.

Following the offering, the company converted $15 million of pre-existing convertible debt into about 13 million shares of stock. The dilution of the company's outstanding shares is providing investors with an opportunity to buy the stock below $1.70.

2. Canopy Growth (TWMJF) CGC: Toronto
Snoop Dogg's endorsement would give Canopy Growth an edge against its Canadian peers once recreational markets become available. This advantage would become especially pronounced once Canadian marijuana producers start looking to recreational markets in the U.S.

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Although Canopy Growth hasn't been profitable in the past three quarters, its sales growth has been attractive. Over the past nine quarters, the company's total sales have grown an average 57% each quarter from $176,000 in the second quarter of 2014 to $5.38 million in the second quarter this year.

3. GW Pharmaceuticals (GWPH)
The company is based in the U.K. and is licensed to grow marijuana by the British government.

GW Pharmaceuticals has been in the news this year because of its cannabis-based treatment for epilepsy, Epidiolex. The treatment uses the non-psychoactive chemical found in marijuana, cannabidiol, to reduce the number of seizures in patients with Dravet syndrome and Lennox-Gastaut syndrome.

The company plans to file Epidiolex for Food and Drug Administration approval to treat the epileptic syndromes early next year with expectations of launching the drug by the end of 2017 or early 2018. These syndromes are difficult to treat so the company's success here might open the door for it to be one of the premiere makers of epilepsy drug treatments.

Investors can expect the company's share price to increase by more than 50% if the drug receives FDA approval and goes on to treat other forms of epilepsy.

READ MORE: 2 Inexpensive Marijuana Stocks That Could Quadruple in Price

By William Ramov

Source: https://www.thestreet.com/story/13864427/1/here-s-why-these-3-cheap-marijuana-stocks-may-quadruple-in-price.html