by Fred Fuld III
It was one year ago at the San Francisco MoneyShow that I gave a speech called Stocks of Leading Future Industries. In that presentation on August 16, 2019, I covered seven leading industries, plus one bonus industry.
Awake the alchemist that sleeps in you and turn mushrooms into potions to cure the WORLD!! - Unlock CRAZY mushrooms with FUN capacity - Magical POWER-UPS to help you in your research - SAVE the world and become TRILLIONAIRE by doing so Are you ready??
The bonus industry was Legalized Hallucinogenic Drugs, primarily the legalization of psilocybin and the industry around its use for therapeutic purposes.
First Public Psilocybin Stock
At that time, there was only one publicly traded stock involved in researching psilocybin, Wuhan General (WUHN), which had a division, M2BIO, that was exploring the medical use of psilocybin for treatments of various conditions.
I didn’t recommend the stock during the speech, (I never make any recommendations, I only come up with suggestions for you to research), but I did say that one of these days, this stock will start to move up, other psilocybin companies will go public, and these stocks could take off just like the cannabis stocks did in the past. I told the audience to watch this stock and the industry. You can see my speech below. The section on the psilocybin and psychedelic pharmaceutical industry is at the 25 minute mark.
If you want to see a pdf of the slides from the presentation, you can go HERE.
The Alert About Psychedelic Stocks
So why was it important to keep an eye on this stock? From November 20, 2019 to May 20, 2020, the stock traded between 2 cents a share to 4 cents a share. The next day, the stock almost doubled to 7 cents a share. It then traded at 8 cents a share for a couple days, and jumped by 50% to 12 cents a share the next day. After that, it really started to move.
So there were exactly six months that you could have picked up the stock for, let’s say, 3 cents a share, halfway between the trading range. The stock closed at 33 cents on Friday (actually 32.75 cents but I rounded to make the calculation easier).
This works out to a 1,000% profit on Wuhan. In other words, if you had invested $5,000 at 3 cents per share, the shareholdings would now be worth $50,000. Actually the stock has even traded above 42 cents since May.
The movement of the shares should have been an alert to investors and traders.
Why the Potential for the Psychedelic Drug Industry
In my presentation, I discussed how extensive research is being done with health treatment studies on the use of psilocybin to treat:
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•Major depression
•Drug dependence
•Treatment Resistant Depression
•PTSD
I also mentioned that psilocybin and magic mushrooms have been decriminalized or legalized in:
–Oakland, California (June 2019)
–Brazil
–Jamaica
–Portugal (decriminalized)
–Spain (decriminalized for personal use)
Since then, Santa Cruz has decriminalized psilocybin in January of this year.
Is There a Precedent for Using Hallucinogenic Drugs Medically?Psilocybin Forum
There have actually been examples of hallucinogenic drugs being used for medical purposes. One example is Lorcaserin [BELVIQ], which is a hallucinogen, but has been marketed for weight loss in very low doses. The Schedule I hallucinogen psilocybin has the same mechanism of action as Lorcaserin, according to the U. S. Government National Institute of Health. Arena (ARNA) markets the drug in the U.S. and South Korea, and Eisai Co Ltd (ESALY) manufactures and distributes the drug.
Another example is Spravato, which is a derivative of the psychedelic ketamine, and is being used for depression. It is produced by Johnson & Johnson (JNJ).
Golden Mushroom SlotWhat’s Happening Now with Psychedelic Drugs and Stocks
On Friday, September 18, 2020, Compass Pathways (CMPS) went public, trading on the NASDAQ. The company’s IPO was priced at $17 per share, up from a range of $14 to $16, due to the huge demand.
Once it started trading it skyrocketed to $29 a share, an increase of over 70%, and putting the market cap at almost a billion dollars.
The company, which is based in England, is doing therapeutic research on the use of psilocybin for depression.
There are now over a dozen stocks involved in the psilocybin and psychedelic drug industry. To see a list of these stocks, click HERE.
Maybe some of these stocks will get higher and higher.
Disclosure: Author owns a very small amount of CMPS (less than 10 shares) at the time the article was written.
© Joe Amon/The Den/Denver Post/Getty Images Mazatec psilocybin mushrooms ready for harvest May 19, 2019, in Denver.
While magic mushrooms are known for their hallucinogenic effects, they may also have a role to play in the treatment of some mental health treatment.
Or they might, if they weren't illegal in most states.
Oregon has become the first US state to make psilocybin, the hallucinogenic compound in magic mushrooms, legal for mental health treatment in supervised settings.
They have more evidence for their case with a new small study of 24 adults with major depression that published this week in the journal JAMA Psychiatry, which found that two doses of psilocybin led to a large reduction in depressive symptoms.
'The magnitude of the effect we saw was about four times larger than what clinical trials have shown for traditional antidepressants on the market,' said Alan Davis, an adjunct assistant professor of psychiatry and behavioral sciences at the Johns Hopkins University School of Medicine, in a news statement.
'Because most other depression treatments take weeks or months to work and may have undesirable effects, this could be a game changer if these findings hold up in future 'gold-standard' placebo-controlled clinical trials.'
Magic Mushroom Forums
While not without limitations, the study is the latest research to explore how psilocybin could help ease mental health problems. Other studies have suggested that the compound may help in the treatment of anorexia, obsessive-compulsive disorder and addictions.
The participants in the John Hopkins study had experienced depression for around two years before being recruited and had to give up existing antidepressants. Thirteen participants received the psilocybin treatment immediately after being enrolled, and 11 participants were put on a waiting list and received the same treatment after an eight-week delay.
The study offered more evidence of psilocybin's 'rapid and powerful effect,' said David Nutt, a professor and director of the neuropsychopharmacology unit in the division of brain sciences at Imperial College London. The results could have been skewed by the fact that patients knew they were going to get the drug, with expectations potentially increasing the size of the effect, said Nutt, who wasn't involved with the research.
A 2016 study conducted by some of the same John Hopkins researchers found that psilocybin could ease depression and anxiety in patients who had life-threatening cancer.
'Because there are several types of major depressive disorders that may result in variation in how people respond to treatment, I was surprised that most of our study participants found the psilocybin treatment to be effective,' said Roland Griffiths, an author of the new study and the 2016 paper, and a professor at the Johns Hopkins University School of Medicine and director of the Johns Hopkins Center for Psychedelic and Consciousness Research.
Psilocybins can produce visual and auditory hallucinations and profound changes in consciousness over a few hours after ingestion, the study said.
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In the United States, possession of the compound is a felony, as they are classified as a Schedule I substance.
The vote in Oregon requires the Oregon Health Authority to allow licensed, regulated production and possession of psilocybin, exclusively for administration by licensed facilitators to clients.
How it might affect the brain
How psilocybin affects the brain still isn't completely understood, but Nutt at Imperial College said that it appeared the compound disrupted negative thinking circuits through the 5HT2Z receptor in the brain.
'Standard anti-depressants protect against the stressors that lead to and perpetuate depression but don't directly access and remedy underlying biopsychosocial causes,' he wrote in a paper he coauthored and published earlier this year.
'In contrast, psychedelic therapy harnesses a therapeutic window opened up by the brain via the effects of drugs to facilitate insight and emotional release.'
He said that the substance tended to work with 'internalizing disorders' like depression or obsessive-compulsive disorder whereby individuals ruminate on failings or intrusive thoughts.
Another explanation could be more straighforwardly pharmacological, said Guy Goodwin, a professor emeritus of psychiatry at the University of Oxford -- that psilocybin 'is just a kick up the backside' of the serotonin system. Serotonin is a chemical and neurotransmitter in the digestive system, brain and blood system that regulates mood, social behavior, appetite, sleep, memory and sexual function.
Psilocybin Mushrooms Forum
Goodwin, who wasn't involved with the research, said the main limitation of the John Hopkins study was the absence of longer-term follow-up -- the team followed up with the participants only four weeks after the treatment. Depression for many people is a long-term condition, and determining if the treatment had lasting effects is a key missing factor.
Magic stick game. What's more, with studies like these, it can be hard to tease out the effects of the drug from the process of administering it, Goodwin said. Can you count cards online.
The study participants received about 11 hours of psychotherapy and received the drug under the care of trained professionals and in a setting designed to put the patient at ease.
'You get an effect irrespective of whether the treatment works because everyone is caring for you and looking out for you and measuring things. People like that and feel better for that. In a real comparison you'd do everything the same but the actual drugs.'
However, he said that larger studies were underway that should address the questions raised by early proof of concept studies like this one.
'This is a nice, small preliminary study with a lot of weaknesses but equally the positive results promise better things.'
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