Friday’s IPO of psychedelic focused Compass Pathways (CMPS: NASDAQ) was the inflection point for ALL psychedelic stocks. It was a huge success, up 70% that first day—from $17-$29.
I am now expecting this sector to begin a big bull run. But as usual, we have to do our due diligence on finding—a great team, who own a bunch of their own stock, with a great busines model—and can raise money.
That huge move tells me that the market is absolutely starved for quality psychedelic companies to invest in. Investors, both retail and institutional are chomping at the bit to get exposure to what is certain to be a massive psychedelic opportunity.
This excitement is not misguided. Psychedelics are going to change countless lives for the better in the coming years.
Compass Pathways is an exciting company with powerful backing that is looking to treat mental health issues with psilocybin. That is the psychedelic compound in magic mushrooms.
At this point Compass Pathways has no revenue and no cash flow. Yet the market loves it.
I have been doing my research into this sector for months—and I have found psychedelic stock that I think will make shareholders RICH.
This company has a deeply successful leadership group and an even better business model. It’s a model that will see the business generating revenue and profits very quickly—and establish it as a scientific and business leader, right out of the gate.
The psychedelic sector is the place and I’m convinced that this is the stock.
Buckle Up – The Psychedelic Connection Alone
Will Make This Stock Fly
The Compass Pathways IPO makes one thing very clear —— the psychedelic stock market boom is now officially on.
There are now billions and billions of dollars searching for ways to get exposure to this sector and there are precious few high quality companies to invest in.
When that much money starts chasing a small group of stocks with modest market caps—the result is explosive.
When it comes to psychedelic stocks the market is now in the buy-first-and-ask-questions-later mode. This is a sector trade where everything is going to go up over the next 18 months.
The highest quality businesses will see their stock prices go up the most.
This is the moment the market realizes that the boom is on. We have seen it many times before. Biotech, internet, tech, e-commerce, marijuana…….all great sector trades that created multi-baggers right out of the gate.
Psychedelic stocks today are just like the marijuana sector in 2016 right before legalization started happening in various US states and Canada. Everything went up huge and fast.
We all remember what the handful of top marijuana stocks did out of the gate. These weren’t doubles and triples in stock prices. Those stocks were 10 and 20 baggers in 18 months.
Like with marijuana stocks late in 2016 right now is the inflection point where the MARKET BELIEVES in the psychedelic trade.
The most important thing to do right now is to get long this sector. This is the time to play offense.
My job is to make sure that I find the highest quality management teams with the best business model to do that.
I know that with this psychedelic stock I’ve done exactly that.
Blue Chip Management Group With An Unmatched Advantage
There is a right way to get long this sector.
You do it by owning companies run by proven wealth creators. These are the management teams that build companies the right way.
There will be a lot of companies trying to capitalize from this psychedelic boom. There will only be a handful that are going to build great businesses.
Compass Pathways reeks of management credibility. That is why everyone and their dog were buying stock on the IPO.
The psychedelic stock I’m going to introduce you to tomorrow has all of that credibility and an even better underlying business proposition.
The co-CEO of this company took a previous stock from an IPO market cap of under $100 million to a $1 billion market cap when he exited the position.
On the Board of Directors is one of the most successful health sector entrepreneurs you could possibly have guiding this kind of business. This man was behind one of the most successful marijuana stocks —— a 30-bagger for early investors at one point.
More importantly—he has built Canada’s largest manufacturer and distributor of natural vitamins and minerals, taking that company from $20 million in annual sales to over $250 million with a distribution network in more than 40 companies and a globally recognized brand name.
The track record, the experience, and the global connections of this management group are perfect for the psychedelic opportunity in front of them.
And that means it’s perfect for shareholders.
If you are new to the psychedelic story what you need to know is that science has discovered that these compounds are providing miraculous results for patients suffering from mental distress of some sort —— depression, addiction, PTSD, even Alzheimer’s.
These are patience who currently have no effective treatment options. Estimates are that 11% of the people on the planet need help for mental health issues.
Medical psychedelic treatment is gaining unstoppable momentum.
The re-birth of psychedelics is not as a recreational compound. It is as a medical solution with convincing science behind it.
The results from clinical psychedelic studies being reported across the world from the most respected medical institutions have been astounding.
- John Hopkins reported an 83% success rate treating alcoholism versus a less than 20% success rate for conventional methods (1)
- The Beckley Foundation found a 100% reduction in depression levels for individuals who had suffered for 20 years and had never had any success with existing alternatives (2)
- John Hopkins again with an 80% success rate in helping people quit smoking, multiples of what would be expected with other methods (3)
I could name 20 more. Honestly the results are so incredible I did a double take the first few times I started studying this opportunity.
With these incredible study results rolling out over the past several years exponentially more trials are now being undertaken.
New York University (NYU), Yale University (YU), University of Alabama at Birmingham (UAB), University of California, Los Angeles (UCLA), University of California, San Francisco (UCSF) and University of Wisconsin-Madison (UW-Madison) everywhere you look……..even the U.S. Military.
There is only one problem, and in these early stages, it’s a BIG one. There is a huge shortage of supply of the most important part of the treatments —— the psychedelic compounds themselves!!!
My favourite psychedelic stock solves this problem.
Right now institutions are being forced to pay up big time for expensive synthetic versions of psychedelics, mainly psilocybin, a compound found in “magic” mushrooms.
Synthetic psilocybin cost hundreds of dollars per gram—multiples more than the natural version of the compound.
Universities and private industry are launching more studies all the time—so the supply situation worsens every day.
The cost is a problem and so is the synthetic source itself – I mean hey, people are attracted to the natural aspect of these psychedelics.
My favourite psychedelic stock has a first mover advantage in solving this problem. This company has the only approved Section 56 exemption that allows them to produce natural psilocybin for use in these psychedelic trials.
Remember, psychedelics like psilocybin are still banned substances. Without a license, universities and companies can’t produce them.
First mover advantage is VERY real. First-in wins. Just ask Jeff Bezos at Amazon, Elon Musk at Tesla or Reed Hastings at Netflix. First-in lets you build up the infrastructure and connections that make it impossible for competitors to displace.
That Section 56 first approved status is a huge competitive advantage.
The reason that this company was able to get it is because of the quality of the team involved. They have the most credibility with the regulators to carry this out psychedelic process properly and that is why they get the massive head start with this Section 56 approval.
If you wanted independent verification of the quality of this team, the Section 56 approval is it.
Do Not Miss My E-Mail First Thing Tomorrow Morning…
Psychedelic stocks are on the ground floor of what is about to be an explosive ride up.
Compass Pathways stock went up 70% on its first day of trading.
Tomorrow I’m going to introduce you to another psychedelic company that is every bit as exciting as Compass Pathways.
The market just hasn’t been properly introduced to it yet—it has only been listed for a short time. I am going to change that—tomorrow morning.
Here is what you are going to learn:
1 – The track record of everyone involved in this company. They have the right people in every position. Entrepreneurs who have created multi-baggers, connected businessmen who have built world class companies and the medical team that is the best in the field. No question in my mind that they are going to be incredibly successful with this company.
2 – The business model that has the company positioned to hit the ground running with revenue, cash flow and no need to constantly raise capital. There are no other psychedelic stocks that can offer that.
3 – The catalyst rich timeline of events that are going to drive this business and this stock over the next 18 to 24 months.
4 – And of course the name of this company and the ticker for this stock.
If you were invested in marijuana stocks for the raging bull market of 2017 you know why the e-mail you are getting from me tomorrow is one that you can’t afford to miss.
One more sleep and then you get it.
Sources:
- https://bigthink.com/surprising-science/psychedelics-alcoholism?rebelltitem=1#rebelltitem1
- https://www.beckleyfoundation.org/psilocybin-for-depression-2/
- https://www.forbes.com/sites/robinseatonjefferson/2019/09/12/magic-mushrooms-as-medicine-johns-hopkins-scientists-launch-center-for-psychedelic-research-say-psychedelics-could-treat-alzheimers-depression-and-addiction/#1b6feb97c171
