While doing my reading over the weekend, I noticed a company that went public last week that was strikingly different. It’s GW Pharmaceuticals and I can definitively say this is the first legitimate marijuana investment I have seen. There have been other penny stocks listed but this is actually an ADS listed on Nasdaq. Oddly enough it’s not even a hot IPO. You can purchase shares at the IPO price of $8.90 per ADS. That’s probably not a good thing as smart investors always smell out hot new companies. I won’t comment on the merits of this investment other to say that I have been involved in many biotech startup IPOs and this one looks as promising and as risky as any I have seen. They actually are making money (they expect that to change this year as they fund more of their research and trials), have a good balance sheet and name brand pharmaceutical partners like Bayer and Novartis.
Check out this video from Bloomberg where they interviewed the CEO
http://www.bloomberg.com/video/making-prescription-based-cannabinoid-medications-buVSJ9OMSoKpXL5MA0D3xA.html
Also I urge you to read the prospectus thoroughly if you are contemplating an investment. It’s complicated, checkered, and revealing. Deloitte is the auditor. Some times you can get on these things and have a nice ride. Just be sure to sell along the way. For more analysis, read http://seekingalpha.com/article/1312541-the-original-marijuana-stock-files-for-u-s-ipo