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Best Psychedelic Stocks to Watch Right Now

Psychedelics/magic mushrooms, also known as psilocybin (the active substance in these mushrooms), are hallucinogens that have gained rising mainstream popularity in recent years. Specifically, healthcare experts are starting to dive deeper into the health benefits of psychedelics and their potential effectiveness in treating multiple psychological conditions such as anxiety, PTSD, and depression.

Although psychedelic products came under fire in the 1960s for their association with hippie culture (culminating with the Controlled Substance Act), they have seen a modern resurgence. Communities dub the movement the “psychedelic renaissance,” with the government easing drug laws in response to expanding research on the subject. In 2020, Oregon became the first state to legalize the medical use of psychedelics/magic mushrooms and decriminalize them statewide.

Similarly, lawmakers in Florida and Connecticut have recently filed state laws toward decriminalizing psychedelic use for alternative mental health treatments. Psychedelic researchers have studied the profound impact of psilocybin for several years, specifically their effects on various mental conditions that lack pharmaceutical cures (i.e., depression), and many seem to have made much progress.

The recent pandemic and social disruptions have led to a renewed interest in mental health treatments, with psychedelics being one of the leading forces in the process (alongside marijuana businesses).

As such, it’s a good time for retail investors to consider cashing in on some psychedelic stocks that seem likely to grow in the near future as more facilities and states acknowledge them as legitimate treatment options.

Psychedelics seem to be in the race to become the next big thing in biotech, echoing the prospects of the growing marijuana/cannabis industry. We round up some of the best psychedelic stocks that have made notable progress over the last few months, suggesting an upcoming upside in their company’s capital value.

Seelos Therapeutics Inc.

New York-based Seelos Therapeutics Inc. (NASDAQ: SEEL) is a clinical-stage biopharmaceutical company focused on developing novel therapies in treating neurological disorders and rare diseases. Seelos is one of 17 companies to join the first psychedelic exchange-traded fund (ETF), trading on Canada’s NEO exchange (ticker: PSYK).

Additionally, the company has numerous non-psychedelic treatments in its pipeline aimed at revolutionizing mental health treatment. Notably, Seelos recently invested in SLS-002, an intranasal racemic ketamine that combats suicidal thoughts. Seelos announced positive topline data from the SLS-002 trials, which could significantly elevate its position in the alternative treatment scene.

Back in May, Seelos closed its public offering of 22,258,066 shares priced at $3.10 per share with net proceeds at approximately $64.5 million. Seelos announced it would participate in two investor conferences in August, expounding on the next phase of its SLS-002 project.

The forward-looking position on the trials could carry great interest for retail investors, especially with multiple projects on the company’s pipeline soon to enter phase III. Seelos announced its recent quarterly earnings in late April, at $0.28 EPS.

The company closed with shares at 2.40 USD and a market cap of $246.8 million at the time of this writing.

Mydecine Innovations Group

Mydecine Innovations Group (OTCPK: MYCOF) specializes in natural pathways in psychedelic treatment, making it one of the best psychedelic stocks for retail investors. The emerging biotech and life sciences company has invested in research involving artificial intelligence in quantifying drug screenings and the processes to build and manage the receptors involved in psychedelic products.

The artificial intelligence drug delivery program propels the ongoing movement for alternative medicine in the U.S. According to the press release from the event, Mydecine has accrued multiple acquisitions since its inception. These acquisitions include Mindleap Health’s advanced digital telehealth platform and NeuroPharm Inc., a healthcare company based in Canada that focuses on developing natural treatments for veterans, EMS, and frontline personnel worldwide.

One interesting point to note is Mydecine’s recent discovery of over 40 groundbreaking potentially active compounds found in mushrooms. Further research might uncover interesting health associations in the psychedelic scene and position Mydecine ahead of its competitors with fresh product development opportunities.

According to Mydecine CEO Josh Bartch, “We have seen accelerated progress through Mydecine’s fully integrated research and cultivation facilities.” Additionally, Mydecine plans to take a structured scientific approach to authenticate and approve novel compounds for legal use. Bartch adds, “We not only have the ability to discover new compounds, but test them for efficacy, manufacture them for clinical research through a scientific rigor.”

Stocks may rise in response to its upcoming update of subsidiary Mindleap’s virtual health platform sessions on July 30. The platform promotes a better understanding of psychedelic applications in healthcare and its future in modern society. Mydecine’s stock currently closed at $0.40, recently forming a double bottom by 20 cents, and has a market cap of $90.72 million.

Speakeasy Cannabis Club

Canada-based Speakeasy Cannabis Club (CNSX: EASY) may be one of the most undervalued stocks, considering its recent decisions and developments in cannabis and psychedelic fields. The company already held a federal license to grow, manage, and distribute cannabis products before launching a venture into the psychedelics market.

The psychedelics license application takes an estimated six to nine months before Speakeasy receives the NDL (narcotics dealer’s license) that legalizes the cultivation and sales of psilocybin products. Speakeasy’s foray into the psychedelics market follows a surge of clinical trials that plan to examine the therapeutic effects of psilocybin compounds.

Additionally, Speakeasy recently submitted a proposal for the acquisition of Karalos Research Inc., a British Columbia company in the psychedelics sphere. Based on the definitive agreement, Speakeasy will receive the company’s cash balance (estimated at $1 million) and digital assets termed “XCYBIN.” The move might significantly boost Speakeasy’s position in the industry and offering one of the best psychedelic stocks to monitor in the coming weeks.

The biotech company has a long-held practice of favoring farms over factories, with a natural approach to harvesting and distributing supply chains. Back in April, the company scored a 74% profit margin with a $10 million B2B contract, and its entry into the psychedelics market might yield similar breakthroughs in the upcoming months.

SpeakEasy released its Q3 earnings in early July, with a positive gross margin. Company CEO Malcolm Davidson announced that SpeakEasy aims to raise its processing and production profile in Q4 to scale according to increasing customer demands. The company recently closed at 0.45 USD per share, with a market cap of $74.22 million.

Closing Thoughts

The interest in psychedelic research has gone on for many years, and the mainstream public may soon see results from the long wait. Johns Hopkins University opened its Center for Psychedelic & Consciousness Research last year, with over 60 peer-reviewed journal articles published on the potential benefits of the substance. The university focuses on how psychedelics sway behavior, mood, cognition, brain function, and biological markers of health.

With the psychedelics markets expected to hit around $6.8 billion by 2027, there is much potential in investing and holding onto psychedelic penny stocks. Many companies may follow in the footsteps of Compass Pathways (NASDAQ: CMPS), the first psychedelics company to start an initial public offering on NASDAQ.

The push for psilocybin legalization continues, with many members of the public championing the movement. In California, activists are placing a ballot initiative to legalize psilocybin products by 2022. Legislators in various states, including Kansas, Hawaii, and Virginia, have all submitted drug policy reform bills in response to published therapeutic effects of psychedelics.

It might be worth noting big pharma’s role in the grand scheme of things. Although psychedelics and big pharma may have a clash of interest, there’s a good chance of collaborations in the future, when psychedelics may leverage big pharma brands for greater outreach. These may ultimately offer side investment opportunities.

Another critical investment consideration lies behind the need for a robust online presence, resulting from the new normal’s disruptive forces that make remote interaction and operations a priority. The best psychedelic stocks would likely include companies with an agile framework and data-driven decisions, which have a better chance of connecting with their customers into the digital future.

As such, companies like Speakeasy, Mydecine, and Seelos may continue to soar in popularity as customers enjoy accessible communication and interactions with the psychedelics industry. Retail investors may fast approach a “mushroom bloom,” and the growth seems set to be overwhelming.

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