3 Psychedelic Stocks to Invest In the Future of Medicine

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Psychedelic drugs are going mainstream fast, with research supporting their effectiveness in alleviating emotional problems. Scientists continue to revisit different psychedelics such as LSD, magic mushrooms and other therapeutics for a range of mental ailments. Research is in full swing with the announcement from Johns Hopkins on its development of the Center for Psychedelic and Consciousness Research. With a $17 million commitment for planned studies, the research will further help in normalizing psychedelics. Therefore, the shroom boom has well and truly arrived, and investors should seriously consider adding psychedelic stocks to their portfolios.

Investor interest in psychedelics is on the rise as high-profile executives and celebrities are investing in the sector’s future. With such much interest in alternative psychedelic medicine, analysts believe that the sector could bring in over $6.85 billion by 2027. However, government support and widespread legalization are essential for its rapid advancement. With the recent legalization of psychedelics in various states, it won’t be long when they line up pharmacy aisles.

It is imperative to invest in psychedelic stocks that are needle-movers having the most potential for sustained success. Here are three that stand out right now:

  • Champignon Brands (OTCMKTS:SHRMF)
  • Mind Medicine (OTCMKTS:MMEDF)
  • Hollister Biosciences (OTCMKTS:HSTRF)

Psychedelic Stocks to Buy: Champignon Brands (SHRMF)

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Champignon Brands is among the first movers in the psychedelic medicine field and it completed its IPO earlier this year. It is engaged in the production of novel medications, specifically medicinal mushroom products, which aim to treat a variety of mental health problems. It boasts one of the strongest research teams led by its Special Advisory Committee, working diligently to provide high-quality data to its production team. Hence, SHRMF stock is among the hottest investments in the burgeoning psychedelics field.

It has been a busy 2020 for the Vancouver-based company. In April, it announced that it would be acquiring clinic operator AltMed Capital Corp, aiming at opening several subspecialty therapeutic clinics across the U.S. Additionally, the deal also provides several intellectual properties in developing novel medicines. Moreover, Champignon is also looking to open clinics for psychedelics, such as ketamine, psilocybin and MDMA throughout the North American continent.

It has six current trials in Phase I and pre-clinical stages collectively and seven patents pursuing ketamine/psilocybin solutions. To better reflect its scientific alignments, it is proposing a name change to Apotheosis Scientific Ltd. Therefore, with so much on its plate, the company can become a juggernaut among psychedelic stocks.

Mind Medicine (MMEDF)

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MindMedicine is one of the largest biotechs involved in psychedelic drugs’ clinical development tackling mental health troubles. With the success of its Compass Pathways IPO, it is now looking to enlist on the U.S. stock exchange. It would become the second pure-play to be listed on Nasdaq. Hence, MMEDF stock is one of the top investments in the sector with massive potential.

It has three on-going clinical trials, which can be major

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4 Fitness Stocks Getting Stronger from At-Home Workouts

PTON stock is my top pick among fitness stocks. For the current year, the stock has already surged 290%. I would wait for some correction before fresh exposure to the stock. As an overview, Peloton Interactive is in the business of fitness products that include the Peloton Bike and the Peloton Tread. These products feature touchscreens that stream on-demand classes. The company is on a high-growth trajectory, and this explains the stock surge. For the first quarter of 2021, the company reported revenue growth of 232% year-over-year. As a matter of fact, the company’s annual revenue growth has been more than 100% for the last six years. Further, for Q1 2021, the company reported positive adjusted EBITDA of $118.9 million. For the prior year, adjusted EBITDA was negative at $21 million. As the company’s EBITDA and cash flow increases, the stock will continue to trend higher. The company’s operating cash flow (OCF) for the first quarter was $312 million. This implies an annualized OCF of $1.2 billion. With the pandemic triggering demand for at-home fitness equipment, the company’s core business will be a cash-flow machine. Given the growth and future outlook of the company, PTON is a high-growth portfolio stock. If the stock does fall below $100 on profit booking, it would be a good time for fresh exposure.

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Canaccord Predicts Over 100% Rally for These 3 “Strong Buy” Stocks

After passing one speed bump, is the market heading towards more bumps in the road? Following the September sell-off, there has been a surge in COVID-19 cases and limited progress on the next stimulus package. In addition, the likelihood of a Biden victory in the November elections increased.

At the same time, however, the broader market has been ramping up, with the NYSE Cumulative Advance/Decline line reaching a record high and the percentage of SPX components trading above their 10-day moving averages landing at 93% for the first time since early April.

Weighing in for Canaccord, strategist Tony Dwyer commented, “The strength of the broad market driven by the economy recovery beneficiaries has been dramatic, and while we believe the market should remain volatile (in both directions) into year end, our positive fundamental core thesis driven by excess liquidity and a synchronized global recovery suggests inevitable periods of weakness following these type ramps should be used as an opportunity to add equity exposure.”

Turning Dwyer’s outlook into concrete recommendations, Canaccord’s analysts have pinpointed three stocks that could soar in the year ahead, with over 100% upside potential forecasted for each. What’s more, after using TipRanks’ database, we found out that all three have scored enough positive reviews from the broader analyst community to earn a “Strong Buy” consensus rating.

Zynerba Pharmaceuticals (ZYNE)

Developing next-generation transdermally-delivered cannabinoid therapeutics, Zynerba Pharmaceuticals wants to help improve the lives of patients with rare and near-rare neuropsychiatric conditions. With shares changing hands for $3.65, Canaccord believes that the share price presents an attractive entry point.

This summer, ZYNE revealed that in the CONNECT-FX pivotal trial evaluating Zygel, its transdermal cannabidiol gel, in Fragile X syndrome (FXS), the therapy did not achieve statistical significance on its primary or secondary endpoints in the full analysis set, or 210 patients. That being said, it did demonstrate significance on the primary endpoint in patients with full methylation of the FMR1 gene, which was an ad-hoc pre-planned analysis, and secondary endpoints were promising.

Of the patients in the trial, 80% had full methylation, and the company estimates 60% of the 71,000 U.S. FXS patients fall into this category. To this end, ZYNE will meet with the FDA to discuss the next steps for potential approval in this indication, likely in 2H20.

Writing for Canaccord, 5-star analyst Sumant Kulkarni believes that “the key to ZYNE stock lies in the outcome of the company’s interactions with the FDA on its clinical programs for Zygel… It is always difficult to second-guess what the agency might do, but a ‘good’ outcome would involve ZYNE being potentially able to file Zygel for approval in fully-methylated FXS patients. Given there are no products approved for FXS, such an outcome, with perhaps a confirmatory trial to be run, cannot be ruled out.”

Given this result, Kulkarni argues ZYNE will now target the fully-methylated FXS patients. With the analyst seeing the targeting of this subgroup as “the best way forward for its FXS program,”

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