We’re getting some big news on Monday.
That’s when GW Pharmaceuticals PLC (Nasdaq: GWPH) is reporting its first-quarter 2018 results. It plans to do so early that the morning of Feb. 5, before the market opens.
GW Pharma is one of the legal marijuana stocks we follow here – so we’ll be waking up early.
GW Pharma’s share price is up 211.3% in the last two years, more than quadruple the performance of the S&P 500 over the same stretch.
Now, GW has disappointed over the past few quarters. In fact, the company posted an earnings per share (EPS) loss of $2.08 for third-quarter 2017. That was 29% below the consensus of the seven analysts who follow it. And Wall Street punished it to the tune of 7% the day those results were released.
And we can expect to see a similar dip if GW again misses expectations on Monday. And if it does, you should see it as an opportunity to buy on the dip and get it at a discount.
That’s because we’re invested here for the long haul – not quarter-to-quarter results – as GW works to get its cannabis-based prescription drugs in American pharmacies.
When it comes to those marijuana-based drugs – and all the profits and share-price gains they’ll soon deliver – there’s a date that’s much more important to us than Feb. 5.
On the Fast Track
GW Pharma is a U.K.-based biotech firm that manufactures pain drugs using compounds in cannabis.
GW has developed Sativex, a multiple sclerosis treatment available outside the United States. That gave a great head start in the race to build drug franchises around the healing powers of cannabis.
But we’re much more interested in GW’s other drug: Epidiolex, a cannabinoid-based drug that’s aimed at treating children with severe epilepsy.
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I’ve long predicted that Epidiolex would be approved by the U.S. Food and Drug Administration by the end of summer 2017. However, GW wasn’t able to fully submit all the needed paperwork to the FDA until October.
But my prediction wasn’t wrong there – it was just early.
GW has since got that paperwork in. And because the FDA had already given Epidiolex “fast-track status,” it’s likely to get approved soon.
The FDA grants fast-track status to drugs that show early promise for conditions that do not have approved treatment options, in an effort to get drugs approved more quickly. (Epidiolex treats four conditions that don’t have adequate treatment options available: Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms.)
Here’s how soon – and what that could mean for your shares…
All Eyes on 6/27
We recently got word that the FDA has given itself a June 27 deadline to decide whether to approve Epidiolex.
If approved, it would be the first marijuana plant-based prescription medicine approved for use in the United States. People with conditions ranging from epilepsy to severe pain to nausea have been waiting years – decades – for the FDA to make this move.
Here’s what else will happen if the FDA approves Epidiolex: Your shares of GW Pharmaceuticals will start moving up, up, up.
As we always say… When laws pass – or when drugs get approved – stocks soar.
And Epidiolex’s chance of getting that FDA approval skyrocketed on Feb. 24. That’s when The Lancet, the highly respected medical journal, published a study that’s absolutely bullish on GW’s treatment.
In the study, researchers gave either Epidiolex or a placebo to more than 170 people with a rare and severe form of epilepsy. The placebo sliced the number of seizures a person experienced each month by 14%.
Epidiolex’s success rate… was 41%.
So GW and its investors are definitely looking forward to June 27…
Where GW Is Headed
We’re not the only ones bullish on GWPH stock.
The seven analysts that follow GW Pharmaceuticals have a consensus one-year price target of $154. That gives us a potential gain of 10% over its recent trading price of $139.62.
That target is garbage.
I believe GW’s headed to $208 in just the next 12 months – which would give us a 49% gain from current prices… and a 151% gain from when I first showed it to members of my Nova-X Report service.
That’s where I and my members follow “pot stocks” both tiny and large each and every week. (To join us, just click here.)
Once Epidiolex hits the market and starts racking up profits, there’s basically no limit to where it to go.
Now, GW is just one of the dozens of small and fast-growing legal marijuana stocks I’ve shown to my Nova-X members. In fact, I’ve put together a 90-page “bible of weed investing” so you can profit from the wave of states and nations legalizing marijuana.
In that “bible,” I’ve shown my members stocks that have gone on to gain 175.9%… 226.7%… 763.7%… and 1516.7%. And they haven’t stopped gaining yet. To find out how to get that report, click here.
Meanwhile, I’ll be back next week with one of the best ways to cash in on the new tax cuts – and a way to make huge gains on Bitcoin and other cryptocurrencies that I haven’t seen anyone else talking about. I don’t want this to be a “secret” play anymore.
So I’ll see you then.
Have a great weekend.