The COVID Conundrum For Psychedelic Stocks

Meanwhile, individual companies have also provided numerous, positive investment drivers – just in recent weeks. This includes:

  1. New analyst coverage
  2. Inclusion in the Russell Indexes
  3. New drug development deal with one of the industry leaders in Big Pharma
  4. New drug testing deal with one of the industry leaders in Big Pharma
  5. First legal psilocybin imports into Brazil
  6. First legal psilocybin imports into Canada

There have also been a host of tech/IP developments, too numerous to list: patent applications, drug synthesis, digital therapeutics, bioinformatics, etc.

Further improving the commercial potential of the industry, psychedelic drug R&D is already expanding rapidly beyond the boundaries of merely the Mental Health Crisis – into some of the largest of all medical treatment markets.

Psychedelic stocks on sale

Why would anyone want to be selling these stocks with the industry moving forward rapidly, as the potential size of the commercial opportunity increases exponentially? Why aren’t more analysts already covering this sector and these stocks?

The fact remains that these stocks have sold off for reasons 100% due to market conditions and 0% in connection with the actual fundamentals in the sector.

Heavy-hitters like Peter Thiel, Bob Parsons, Mike Novogratz, Kevin O’Leary, and many others haven’t been pouring their own investment capital into this sector on a lark. Institutions haven’t funneled $100s of millions into psychedelic drug development merely because psychedelics have become fashionable in Silicon Valley.

The fact that the U.S. Department of Defense is the world’s largest individual donor for psychedelic drug research should also be getting the attention of investors. The DoD wields a lot of influence with the U.S. federal government.

The medicines are real (and effective). The need is urgent and enormous. The commercial potential is huge.

But today, psychedelic stocks are “on sale”.

Investors have gotten so accustomed to chasing momentum with fully-valued (over-valued?) stocks that buying stocks at a discount is now strange-and-unfamiliar. However, once upon a time, a simple maxim dominated the world of investing.

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William K. 1 month ago Member's comment

The market and need thinking seems strange to me. I seem to associate the term psychedelic with LSD and such types of substances. So evidently there is a new definition of "psychedelic " now. The descriptions of the problems brings to mind that Rolling Stones song about "Mothers Little Helper".

Of course, I define a High Stress situation as "coming under heavy automatic weapons fire, Quite different from some folks thinking.

And so I suppose that the ambient stress level in many areas is hard on some folks.