Kramer: “If you don’t take a small position in this marijuana stock, you’ll regret it for the rest of your life.”

What's the "Mari-Pharma Company" pitched by Hillary Kramer's GameChangers?

By Travis Johnson, Stock Gumshoe, March 17, 2017

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Individual investors are obsessed with marijuana stocks these days, hoping to get in on pot stocks the same way Joe Kennedy got in on whiskey in the days before prohibition was lifted… so it certainly caught our readers eyes when Hilary Kramer started promoting that she has “The One Stock That Could Make
You a Marijuana Millionaire.”

So what is it?

Here’s a taste of the ad to get you started:

“If you don’t take a small position in this marijuana stock, you’ll regret it for the rest of your life.

“Over the past five years, this company’s stock has risen 1,303% and is set to repeat these great gains over the next five.”

And then she jumps right into a few specific clues for us:

“… this $3 billion Mari-Pharma company:

1. Developed the world’s first prescription marijuana medicine that’s now approved for treatment in 29 countries outside the United States.
2. Possesses a pipeline of eight additional clinical-stage cannabinoid product candidates, many of which have been granted Orphan Drug Designation status by the FDA.
3. Locked up the patent rights to a number of cannabis-derived medicines under development, including treatments for Alzheimer’s disease, breast cancer, colon cancer, diabetes, multiple sclerosis, Parkinson’s disease, prostate cancer, and schizophrenia and…
4. May be months away from bringing the USA’s first FDA-approved cannabis-formulated treatment for epilepsy to the market.”

And, as ever, the comparison to some other high-flying company that you regret not owning…

“… using its vast patent rights to shape the future of medical cannabis no differently than Tesla has shaped the future for electric cars.”

And we throw on top of that the “perfect timing” claimed by Kramer — she says…

“You couldn’t ask for a better time to add this company to your holdings, as it may be just months away from receiving FDA approval for its breakthrough cannabis-formulated epilepsy drug.

“When I say breakthrough, I mean it.

“Clinical testing found that this new epilepsy drug reduces seizures by 54% and without the side effects of fatigue and nausea that are associated with current medical treatments.

“This is why one well-respected industry analyst projects that this company’s cannabis-formulated drug could generate peak annual sales of around $3 billion.

“At that rate, the stock could see its earnings jump a whopping 2,900% in the first year alone, turning the company from a $3 billion operation to one with a market cap of $30 billion.”

And the publisher includes a little side note just to further intrigue:

“As you’ll read here in this special BUY ALERT, this $3 billion Mari-Pharma company is not only months away from receiving the world’s first FDA-approved marijuana medicine but also has over 60 patents that could give it a monopoly-like position for virtually every cannabis-based medicine for treating or curing everything from Alzheimer’s, Parkinson’s, and multiple sclerosis to numerous forms of cancer.”

So what’s the stock? This is, as you may quite easily have guessed, GW Pharmaceuticals (GWPH), which has been covered a great many times in this space… and is one of those marijuana stocks that’s not really a marijuana stock — it’s a drug developer that is using marijuana compounds as their raw material.

In general, that should make it more appealing and predictable than “recreational” pot stocks, or stocks tied to the boom in mom-and-pop pot operations and small farming facilities and the like — if they’re creating drugs, they’ll have a more obvious commercialization pathway, and patents that are meaningful, and, since they’re not selling bags of marijuana from storefronts, no real regulatory concerns beyond what all pharma companies face. (If there’s a regulatory hurdle for GW Pharma it’s not marijuana’s legal status, they’re not selling marijuana — it’s the fact that marijuana is still a Schedule 1 drug according to the feds, which means they have more red tape to cut through in order to work with it as they grow their raw materials and develop their drugs).

But I’ve written many times about GW Pharma and I don’t know that I’ve ever said anything very helpful to investors — it’s the big player in marijuana-derived medicines, so newsletters tend to lean on it as the “safer” play on legalized pot. They have patented strains and may have future brand name potential, I suppose, but, more importantly, they’re not in the “marijuana as a commodity” business — assuming their clinical trials are successful and their drugs approved, they will have a patented product that has strong pricing and real demand to go with the monopoly position they’ll enjoy as the supplier.

Legalization is perhaps a risk in some ways, not a benefit, because if similar benefits can be obtained from smoking marijuana or chewing on some brownies then maybe the patients who need relief from cancer pain or epilepsy will go with the raw material instead of the engineered drug… but that’s true of lots of herbal remedies and other active ingredients that are available in less controlled variations as herbal or alternative treatments, and it’s probably not a real concern for GWPH — I bring it up just because I think the wave of marijuana legalization legislation is irrelevant to GWPH, despite the fact that it’s often touted as “buy” because of those state law changes.

As a real pharmaceutical company, well, you can make your own call — yes, their lead drug, Epidiolex, is on track to be submitted to the FDA for marketing approval this year, and, given their close relationship with the FDA throughout the process, will probably be approved. I don’t know what the market will be, I guess that depends on whether doctors jump on the approval and start to try it on more of their epilepsy patients or whether they use it strictly for the narrower indications it will be approved for initially.

And yes, Goldman Sachs did reportedly initiate coverage of the stock last Fall, with a price target of $189. The average price target is about $155, and the estimates for next year’s sales (which would be the first year of Epidiolex sales, assuming it’s approved) vary widely ($45 million to $265 million), probably largely because of different estimates about how quickly the drug could be approved, brought to market, and pushed by the sales force. And you can see the company’s own plans in their most recent investor presentation here.

So… over to you, dear friends: Want a toke of GWPH as they come close to commercialization? Think it’s already rich enough? Let us know with a comment below.

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Personal Capital is an advertiser with Stock Gumshoe, but Travis also uses it every day for his personal accounts and finds it invaluable. Here's what he said: "They offer a great (and genuinely FREE) 'second opinion' for your financial plan, but what I love most is their automated financial dashboard -- it will look at all your assets and debts, tally up your asset allocation, project where you'll be at retirement, and suggest ways to manage risk or improve returns. It's free, I think their free tools are great, and I think it's worth checking out -- you can do so here.
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26 Comments on "Kramer: “If you don’t take a small position in this marijuana stock, you’ll regret it for the rest of your life.”"

avatar

Jerry
Guest
0
Jerry

Despite the BS hype, it actually seems like a reasonable recommendation on a fundamental basis.

SageNot
Guest
0
SageNot

Where are the earnings? Hilary Kramer seems to thrive on these NO EARNINGS companies.

Carbon Bigfoot
Guest
0
Carbon Bigfoot

Earnings ( $3.49 ) at present and a stock price of $122. That’s a lot of Brownies.

joseph
Guest
0
joseph

Hi Travis, figured this one out in 10 seconds and indeed took a modest position. I do believe this pot based medication is going to bring a lot of positive reactions from patients (better than all the chemical shit!!!). GWPH has covered many fields with patents (don’t know how enforceable though). When the pot based drugs will be approved the revenues will potentially skyrocket. And than a market cap of 3 Billion is not much (in these illogical and exuberant times of fin environments!!!) compared to eg Tesla. So took the bite! Cheerio

Tom S
Guest
0
I’ve been watching GW Pharmaceuticals for some time and concluded it’s a conservative stock to get into. Once its products gets approved there will be an upswing . . . but conditions can change, such as the legalization of MJ . . . then I would be looking to get out. The better bet is CARA. They are in many ways the same type of company. They too have proprietary drugs in the pipeline, the most important one being for chronic pain relief which many, many Americans suffer from. The stock is not pricey. Got in at under $10 a… Read more »
sportsbiz
Irregular
11
Do you know how far along the approval process CARA is with their pot based drug? There are two sides to the chronic pain argument. I agree that the potential market is huge and far larger than epileptic seizures, but more than GWPH I think they would be adversely affected by legalization. If you can buy pot legally for what is likely less money than the regulated drug and without the necessity of a prescription, one is much more likely to dose. A brownie, a joint or whatever is more than enough for pain relief for most people.
eemajin
Irregular
1

Rated “very bearish” by the analyst opinions on the Fidelity website.

Carbon Bigfoot
Guest
0
Carbon Bigfoot

Earnings are -$3.49. Instead how about Schweitzer-Mauduit. SWM $41.69/ and paying 4.06% dividend. Who are they—they make roll -your- own joint paper. Never rolled or smoked. But there are many smokers still that’s why I own Altria, PM and British American Tobacco because I understand those that smoke cigs get a higher high when they toke pot.

migage19
Irregular
0

The price of GWPH has gone up and down over the last year. Maybe it would be good to buy at a low point. What about buying GWPRF?

salambill
Irregular
0
salambill

What is GWPRF?

harmony1924
Irregular
0
harmony1924

I find this site infinitely superior to the many others I subscribe too . The projection on the informative releases has ,for me, a profound impact of truth and validity which prompted my investing in GWPH. I anticipate receiving many more informative briefs from the Gumshoe staff. The authorship is entertaining as well as informative and lastly the format holds my attention and lasting interest. A wonderful “find” in this hucksters environment!!! Thanks LVS

thinairmony
Guest
0
Well considering making alcohol and growing your own legal weed Is a rather bad comparison. Creating medical marijuana is where the money will be made and like other FDA drugs. Marijuana drugs will have to go under the same FDA trials as other drugs do and probably have patents and Uncle Sam will end up getting any of that money.Sure Dr.Kss can probably confirm this. People wanting it for pleasure will get it black market ,or grow it theirself. That part would be best to invest in pipes, bongs, etc.. Along with books how to grow your own kits with… Read more »
thinairmony
Irregular
23
The only reason marijuana will become legal by the federal government is going to be for medical use only. I could write a a detailed explanation but I won’t. I would say. Staying high 24/7 would be if legal and would be very damaging to the younger generation moving forward at the speed it is now. Marijuana makes one very passive and unmotivated. Recreational use would make it very easy for today’s youth to obtain and wreck havoc at ages that educational development and character traits are very easily influenced. And is a time for them to prepare for their… Read more »
thinairmony
Irregular
23

After writing the above comment, I deleted it . How it got posted bewilders me. I knew it would have very negative reactions. But it’s true. This is the land of the free. But slowly becoming the land of liberals. Look at the government party that lost the presidential election. They have taken the loss poorly.

Anamorph
Irregular
906

I’m viewing this on Sunday evening 3/19 and your above comment (‘The only reason…’) is at a mere -1, hardly a ‘very negative’ reaction. Maybe this is not the best time for you to talk about people taking things poorly.

I’m going to give it a thumbs-up to bring it back to even. This is because I try to keep things positive…I even consider it part of being a liberal. ;- )

thehiso
Irregular
0
I run two businesses and am very creative and marijuana is way more dynamic than you give it credit for. Not a staunch supporter here but definitely a user and I can tell you that it’s definitely not worse than sugar on any level. That being said, if you already have low ambition and IQ then pot could take you down a bad path but no more than a sugar addiction. Both can ruin your life. The libertarian way is freedom of choice as long as it doesn’t infringe on the rights of others. Legalize all drugs, make laws on… Read more »
Lulu
Irregular
705
$WEED – np Hey thinairmony, I don’t agree or disagree but my thots are people are lazy!! There has always been those who ‘grow their own’ and I am not sure of the % of who utilizes the ‘ home brew method’ but I do not think that is where the money is…….as I said people are lazy and as long as they have money, and even during times of tight budgets there always seems to be enough dough for a few beers, cigarettes and a bit of the ol wacky tabackie. How much can one ‘family’ smoke or drink… Read more »
cpow24
Irregular
3

Upgrade by The Street from a D+ to a C- on Tuesday. There are ALOT of MJ stocks out there if you look….and a few WILL hit a winner. Just need to pick the right ONE!!

Andrew
Guest
0

Great info Travis, i just cant get my head around Kramer….. interesting only 2 pharma in Top 40 – http://eqibeat.com/top-40-global-big-cap-adrs-by-dividend-yield-mar/

microcapwiz
Member
2
microcapwiz

Emblem COrp – EMC.CA or EMMBF:US is the only canadian medical marijuana producer with a Pharma focus led by ex CEO of Purdue Pharma

Sam
Guest
0
Sam
Can someone explain: You often read people exclaiming GW has tripled or quadrupled in the last year, etc., and it’s destined to keep drastically rising. Their stock price was down at $35.83 in early 2016 at its low. It peaked at $137.88 in the fall of 2016 and is now at $120.58. So starting from the low, yes, there has been dramatic growth, however, in summer of 2015 the stock peaked at $133.98. So what’s the cause for the severe drop and then rise? What’s with every article you read seeming to reset the timeline at the low point and… Read more »
backoffice
Irregular
111

GWPH? Was this ever under $2.00 per share? I have a lot of regrets in life I’ll guess this will just be another one to add to the list.

backoffice
Irregular
111

I took her bait where she guaranteed an average of 3 double gainers a month for 12 months. I cancelled before 90 days and received a pro-rated refund, I told them about the guaranty and they gave me trades that were from 3 months before I joined, they didn’t respond, and I wound up poorer for it Stay away from Hillary Kramer.

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