Brodrick: Cannabis’ High-Powered Painkillers Will Generate High-Powered Profits
Scientists recently discovered that cannabis contains a pain-killing compound 30 times STRONGER than aspirin.
The compounds are known broadly as flavonoids, plant metabolites that are thought to provide antioxidant effects and other health benefits.
“These molecules are non-psychoactive, and they target the inflammation at the source, making them ideal painkillers,” said the study’s corresponding author and an assistant professor of molecular and cellular biology.
In fact, an earlier study first flagged the painkilling properties way back in 1985.
So why have scientists not done anything with them since? Because for decades, it was illegal to research cannabis.
Interestingly, a federal court just ordered the U.S. Drug Enforcement Administration (DEA) to explain, in writing, why it’s dragging its feet on marijuana research applications.
THC, the psychotropic ingredient in cannabis, can also treat chronic pain. And cannabidiol (CBD), another chemical found in cannabis, is the active ingredient in Epidiolex, the first FDA-approved cannabis-based medicine for childhood seizure disorders.
CBD may also be useful in fighting antibiotic-resistant infections, or “superbugs.”
This Degree is Deep in the Weeds
This may shock you, but many college students are using the mari-juana. Oh, that doesn’t shock you at all? Well, how about that now there are schools that offer degrees in, essentially, “weedology.”
Northern Michigan University (Go, Fightin’ Wildcats!) offers a degree in Medicinal Plant Chemistry. It’s the first four-year program to focus on marijuana. From the description on the website:
The required coursework provides a foundation in chemistry and plant biology, with a capstone research experience involving experimental horticulture and instrumental analysis of natural products, while focus tracks allow students to explore their interests in the relevant areas of business and accounting (Entrepreneurial Track) or advanced topics in chemistry and biology (Bio-analytical Track).
That’s pretty serious stuff. Maybe we shouldn’t poke fun at it? Naaaaaaah!
Actually, those familiar with the program say it’s “not an easy degree at all.” Required courses include organic chemistry, plant physiology, botany, accounting, genetics, physical geography and financial management. Whew!
Other schools are jumping on the marijuana-course bandwagon, including the University of California (surprise) and the University of Denver (ditto). But NMU has the first four-year degree.
A Bong-load of New Cannabis Ballots
More U.S. states legalized either medical marijuana, recreational weed or both in the last election. And if you think that’s all, hang on to your hat.
Here’s what is coming down the pike: Eleven U.S. states have legalized recreational marijuana — Alaska, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont and Washington. The District of Colombia has, too.
An additional 10 states have 15 different marijuana initiatives on the ballot in 2020 — so far. Arizona is going to vote on legalizing marijuana, banning the government from taxing or regulating marijuana and issue a broad pardon to those convicted of marijuana-related crimes.
And that’s just for starters.
Slowly but surely, America is making progress. And for investors who have the spine to ride out a wild market, the rewards could be extraordinary.
Let me show you a chart of one of the major cannabis stocks, Canopy Growth (TSX: WEED). Every fall, this and other major cannabis stocks have rallied.
It’s cyclical. Not quite clockwork — you can see the starts and ends of these rallies change. Sometimes it starts in late July … sometimes not until September.
But it happens every year. And the rally can be ENORMOUS.
In the U.S., last year, the ETFMG Alternative Harvest ETF (NYSE: MJ) rallied 49% from August through October. Then it sold off hard into October. Then it rallied another 59% into January. Wow!
Sure, MJ is down 26% since the start of the year, and about 10% since mid-July. You can see those pullbacks on the chart, too. The next seasonal rally is coming.
If you like profits, get ready. You’ll want to ride this move for all it’s worth.
All the best,