CBD: Miracle Molecule or Snake Oil?
If you pay any attention to the budding cannabis market in the U.S. and abroad, you’ve almost certainly heard the three letters “CBD” come up.
CBD, as most of you already know, stands for cannabidiol. It’s one of the 113 identified cannabinoids. That’s the scientific name for the chemical compounds found in the cannabis plant.
More and more research is being done on each of these compounds, what they do, and how they work together and with our own bodies’ natural systems.
You see, every animal has what’s known as an endocannabinoid system. It’s a biological system in our bodies that creates the same compounds found in the cannabis plant.
And we’ve all got receptors for those chemicals that are already built into our brains. In fact, the endocannabinoid system evolved before the cannabis plant. So we’ve been making these compounds far longer than we’ve been ingesting them.
But our systems don’t make enough of the chemicals to completely fill the receptors. That’s why adding cannabinoids like THC makes us feel high. It adds the extra molecules needed to fill the receptor.
But through research, we’re finding that we can do the same thing by taking CBD into our bodies. We add enough extra CBD to fill the receptors, and our bodies do what they’ve evolved to do: heal.
And the market for CBD products is already starting to explode...
Extra, Extra! Read All About It
I searched “CBD sales” on Google to get some solid numbers on where they’ve been, where they are, and where estimates have them going.
And the results were a barrage of dollar signs and really big numbers. I captured a few of the headlines to give you an idea:
That’s just a handful. It was pages upon pages of stories about how big the CBD market is going to be.
For reference, in 2018, U.S. CBD sales hit $390 million. And by 2022, analysts expect the U.S. market alone to eclipse $1.3 BILLION. That’s 3.3 times bigger in just five years. It’s 27.5% annual growth. And it’s just the U.S.
Factor the whole world into the picture, and you’ve got the potential for a $22 billion global industry by 2022. People were just starting to warm up to the idea that the THC cannabis industry is going to get to $20 billion by then.
And now we’ve got a whole new one about to pop up and surpass it!
And everyone is getting on board. CVS recently inked a deal with Curaleaf to supply its stores with CBD products. Walgreens will be adding CBD products to its shelves at 1,500 U.S. stores.
Pretty soon, you’re going to be able to get these products everywhere. And it’s going to spell major growth for the companies making the products.
Curaleaf shares shot up over 50% on the news of a deal to supply CVS. There’ll be more companies sharing that fortune as the months and years pass.
But there’s a side of the CBD industry that’s got far more room to grow and will deliver far more profits to early investors.
Retail sales are great. But it’s tough to maintain a monopoly on a popular product. There are always imitations. And they cut into your sales.
But if you can patent your product and protect it for decades, you’ve got a much better defense against copycats stealing your profits.
And you can do exactly that with CBD products if you’re a biotech company. Because you’re making medicine.
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The Natural Winner
Last year, the first cannabis-derived medicine was approved for use by the FDA. GW Pharmaceuticals’ Epidiolex was approved to treat epilepsy on June 25, 2018. European approval is expected soon, too.
And while GW was the first to get a product to pharmacies, there are a lot of other companies out there working on cannabidiol-based therapies.
Epilepsy is only one of many illnesses that CBD has shown promising results in treating.
Researchers are looking into CBD’s use for pain management, anti-aging therapies, anxiety, other movement disorders, and even helping the brain function better.
But some of the most exciting research is all being done by one small company.
I’m talking about two of the biggest threats that exist to humanity: heart disease and cancer.
Heart disease alone claims over 15 million lives every year. And every day, 1,620 Americans die of cancer. Every. Single. Day.
And this company is finding ways to hopefully cut those numbers in half (or more) with naturally occurring compounds our bodies were designed to make and use.
It’s got very promising results from its Phase 1 and 2 trials. And it’s even got a fast-track status from the FDA on one of its potential CBD cancer treatments.
But it’s still flying under the radar because it hasn’t gotten the final OK to head to market. Once that happens, this is going to go from being a $100 million company to a $100 billion one in no time.
And only the folks who get invested early are going to capture that massive rally.
I want you to be one of them. So I’ve gotten the OK to share a research report one of my colleagues put together on the opportunity.
It’ll give you all the details on the amazing research going on at this tiny firm. And it’ll show the incredible profit opportunity awaiting early investors.
Don’t delay. The company’s already starting to get attention, and the stock is up 20%. But there’s easily another 1,000% run to go.
To your wealth,
To your wealth,
After graduating Cum Laude in finance and economics, Jason analyzed complex projects and budgets for the U.S. Army. Then, at Morgan Stanley, he led the assistants' team for the North American repo sales desk, responsible for hundreds of multibillion-dollar trades every day. Jason is the assistant editor for The Wealth Advisory income stock newsletter. He also contributes regularly to Wealth Daily. To learn more about Jason, click here.
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