Alternative Cannabis Stocks
Fortunately, GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) isn’t the only game in town. Another cannabis-derived drugmaker I’m interested in is Cara Therapeutics Inc (NASDAQ:CARA) (3).
Cara Therapeutics Inc (NASDAQ:CARA) has only one drug undergoing clinical trials, but its purpose hints at huge potential profit. “CR845” is a painkiller with its chemical roots in cannabinoids. Like opioid painkillers, it affects the brain’s opioid receptors. But because it doesn’t cross the blood-brain barrier, it doesn’t produce the euphoric effects of morphine or oxycontin, just the relief from pain.
In a world reeling from addiction to and abuse of opioid painkillers, we’re in need of a drug that takes a different course of action within the body. Cara Therapeutics Inc (NASDAQ:CARA) may have a winner. Still a small company, and recently experiencing a tumble after missing Q4 earnings, Cara still has enough cash on hand to pay for drug trials through 2018.
We’ll really know whether or not $CARA is worth owning when the next drug trial results are published in June. In the meantime, risk-tolerant investors might want to snap up some of this stock, which is trading at a meager $15 compared to $GWPH’s $125.
Final Thoughts on Cannabis Stocks
Like Sean Williams and the other good folks at Motley Fool writing on this subject, I’m anxious to find a winner among cannabis stocks. Imagine living in the days just prior to the repeal of alcohol prohibition. To realize that just decades later, beer and liquor companies would be international in their scope is to realize that savvy cannabis investors are going to get rich in the next few years.
Cannabis has the additional benefit of being medically interesting, giving it many more revenue possibilities than alcohol or other regular ol’ vices.
Cannabis companies simply don’t have the kind of business fundamentals necessary to be anything but a gamble. But that’s how it goes with high potential growth stocks. For Cara Therapeutics Inc (NASDAQ:CARA) and GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) investors, there is still a tremendous amount of risk. But it just might turn out that there is even more reward.
If you’re looking for a cannabis stock winner, which companies are you investing in?
Andrew Black is a personal finance and investment writer from Baltimore, Maryland. He specializes in creating passive income and financial security through value investing and real estate.
Note: This post was originally published on ModestMoney.com. Check out their site for the latest investing news and analysis.