GW Pharmaceuticals Plc ADS (GWPH)

[Monksdream]

Obviously the investment community is waiting on the DEA decision. GW Pharma is a fascinating company for no other reason than the long journey its founder has taken, going back since he was a young graduate student in his early 20s. He was born in 1954. He is 64 years old.

The journey of public stock companies roughly began in 2013, which is the year GWPH went public at roughly ten dollars. As for as the stock pricing goes, it hasn't looked. Other companies companies connected to medical cannabis research followed. I know of only three more listed companies -- Cara Therapeutics (CARA), Zynerbia (ZYNE) and the infamous (currently) Insys (INSY).

Institutions make up the bulk of everyday trading for listed companies, something like 75 percent. It is the institutions that drive stock prices higher. Institutions own 70 percent of GW Pharma stock. Contrary to popular perception, most are prudent with other people's money. In general, institutions, even in bull markets, will invest the bulk of their funds in perhaps 25 percent of the listed companies.

The message they send to the market is simple: follow the money.

That said, it is now time to examine a five year chart of weekly prices for the four listed companies perceived as medical marijuana companies.



As one can observe, GW Pharma is the clear hands down favorite among institutional investors. The other three have had their ups and downs in the past five years. As Warren Buffett said, "in the short run the stock market is a voting machine; in the long run it's a weighing machine."