Avoid These 3 High-Risk Cannabis Stocks Like the Plague
Cannabis stocks are a high-flying sector, but that doesn’t mean that all of the companies are worth investing in. Here are three to avoid. | Source: Shutterstock
By CCN: Cannabis stocks are all the rage following last year’s explosion in the sector. With legalization gaining steam in both the U.S. and Canada, investors are piling into these companies as if they are going to be the next great money-making scheme.
The problem is most of these stocks aren’t worth real green. They are only worth what the market says they are worth, and that value is going to decline for almost all of them. Only a few may be worth looking at.
These three cannabis stocks, in particular, are sucker’s bets.
Intec Pharma: Cannabis Drug Delivery Fails
Intec Pharma Ltd. (NTEC) is a clinical-stage biotech firm with Accordion Pill Platform Technology. The tech allegedly boosts the effectiveness of drugs by better controlling how they are retained and released in the stomach.
It has two Phase III trials in development, one for Parkinson’s disease symptoms and another for insomnia.
In regards to cannabis, Intec says the Accordion Pill is aimed to deliver:
“…either or both of the primary cannabinoids contained in Cannabis sativa, cannabidiol (CBD) and tetrahydrocannabinol (THC) for various indications including low back pain, neuropathic pain and fibromyalgia.”
The delivery system failed its study, however.
The reason to stay far away from NTEC stock is that its success is entirely tied to the Phase III trials of its non-cannabis drugs.
About 90% of all drug trials fail at some point in the process,