by Fred Fuld III
I very rarely toot my own horn about stocks or industries that I talk about, especially because I never give investment recommendations; however, this time I will talk about a prediction that came through far beyond my wildest dreams. That prediction relates to the industry of psilocybin (Magic Mushrooms) and other psychedelic stocks.
I made the prediction back in 2019 at the San Francisco MoneyShow in a presentation called Stocks of Leading Industries, which can be found below. The section on the psilocybin and the psychedelic pharmaceutical industry was a bonus industry that I covered at the end, and can be found at the 25 minute mark.
If you want to see a pdf of the slides from the presentation, you can go HERE.
Who’s Got the Drugs?
Who would have thought that there would be an industry built up around drugs that are classified as Schedule I under the US Controlled Substances Act? (Schedule I means “with no currently accepted medical use and a high potential for abuse”.)
However, now psilocybin, the primary active ingredient in magic mushrooms is now being tested to treat various mental issues, such as depression, addiction, anxiety, and PTSD.
Even other psychedelic drugs are now being tested for neurological treatments, including LSD, DMT (dimethyltryptamine), and Ibogaine.
Psychedelic Drug Stock Returns
So how have these stocks performed? The only psilocybin stock that was trading a couple years ago, that I mentioned in my MoneyShow presentation, happened to have the name Wuhan General (WUHN). You could have bought the stock last year, up until May 20, for 3 cents a share. Today it’s trading for 90 cents a share.
Then other mushroom companies started to go public, such as COMPASS Pathways (CMPS), which is up 66% over the 12 months, Mind Medicine (MMEDF), up 20%, and Numinus Wellness (LKYSF), up 50%. A Dutch shroom company called Red Light Holland (TRUFF) has doubled over the last 12 months. Field Trip Health (FTRPF) is up 219% over the same time frame.
The interesting thing is, you didn’t have to buy any of these stocks a year ago to make a huge profit. You could have bought Field Trip last week and made a 33% profit. Or Numinus and made a 30% profit.
If you like real low priced mushroom stocks, you could have bought Minerco (MINE) for $0.0015 per share. That’s less than one fifth of a penny. The stock is now at 1.4 cents per share.
Companies Jumping On Other Psychedelics
One of the other psychedelics that pharmaceutical companies are getting into is DMT, a short lasting (15 minutes) smokable hallucinogenic. Two companies that are researching the use of microdoses to treat neurological issues are Entheon Biomedical (ENBI.CN) which currently trades only in Canada, and Algernon Pharmaceutical (AGNBF), which although is a Canadian company, trades in the US on the over-the-counter market.
One company that is exploring the use of MDMA (Methylenedioxymethamphetamine), more commonly refereed to as Ecstasy, X, E, and Molly, is Champignon Brands (SHRMF), in addition to its research into psilocybin and ketamine.
What are Psychedelic Drugs Used to Treat?
Extensive research is being done with health treatment studies on the use of psilocybin and other psychedelics to treat: