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Barron's: 4 Stocks to Quench Your CBD Craving

Barron's: 4 Stocks to Quench Your CBD Craving
(Olegmalyshev/Dreamstime)

By    |   Thursday, 23 May 2019 09:56 AM

Piper Jaffray analysts recently suggested that savvy investors might want to develop a habit of buying shares related to the cannabis ingredient CBD.

“It is a bit like gluten,” the group wrote in a note earlier this week, Barron’s reported. “Consumers are unsure what is,” but “they know they want it.”

Analyst Michael Lavery and his colleagues figure that the nonintoxicating CBD—short for cannabidiol—could find its way into products worth $3 billion to $6 billion next year, then grow to a market worth $8 billion to 15 billion in five years, Barron’s reported.

Like marijuana, CBD comes from the cannabis plant. Unlike pot, it does not produce a high.

While derived from the same source as THC, CBD (short for cannabidiol) has become increasingly popular due to its proven medical qualities and the fact that it is non-psychoactive. 2018 saw the compound make its way into several products, and countries around the world have turned a much friendlier eye to its unique properties rather than cannabis as a whole.

CBD will appear in food, beverages, health products, and skin creams, Barron’s quoted Lavery as predicting.

For now, “the Food and Drug Administration doesn’t want companies putting CBD into foods or beverages, not even pet foods. But recognizing the demand for the product, the agency has scheduled a public hearing on May 31 where stakeholders can discuss ways to allow CBD as an additive,” Barron’s said.

Piper said the top four companies that sell CBD concentrates online and in health-food stores had a total of less than $160 million in 2018 revenue. They are Charlotte’s Web Holdings (CWEB.Canada), CV Sciences (CVSI), Elixinol Global (EXL.Australia), and Isodiol International (ISOL.Canada).

To be sure, Newsmax Health recently explained that you would have to be living in a cave to have missed the CBD craze that is sweeping across America: New products are cramming store shelves as the market explodes for what many Americans believe to be a miracle cure-all.

Everything from oils to gummies to pills, creams, and ointments are now for sale at supermarkets and specialty chains. You can even get massages infused with CBD, or cosmetics laced with the drug.

All of these products contain cannabidiol but not THC, the ingredient in pot that provides a "high." But what do scientists really know about the health benefits and risks of CBD?

Precious little, experts say, and consumers should take care that they are not wasting their money.

"You have a flood of CBD products that are coming from hemp that are going out onto the market, and you've got all sorts of claims being made about those from people are trying to sell them," said Timothy Welty, chair of the department of clinical sciences at Drake University's College of Pharmacy and Health Sciences, in Des Moines, Iowa.

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Piper Jaffray analysts recently suggested that savvy investors might want to develop a habit of buying shares related to the cannabis ingredient CBD.
cbd, stock, barrons, cannabidiol
465
2019-56-23
Thursday, 23 May 2019 09:56 AM
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