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Discovering and Enhancing Use-Cases for Cannabis

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As acceptance of Cannabis has grown over the past few years, so has our understanding of the medication/drug.  Despite this, researchers believe that many beneficial but untapped effects of the medication have yet to be discovered.  This has resulted in continued research, which recently saw scientists create various CBN analogs poised to help sufferers of various neurological disorders, in addition to discovering new approaches to eliminating certain unwanted side effects of cannabis use.

Two Steps Forward for Cannabis

In recent weeks, we have seen not one but two studies released touting new insights into how Cannabis functions and the role it can play in protecting the human body.  The following is a brief look at these developments.

Anxiety Reduction

When it comes to Cannabis, one of the most common reasons for consumption is to treat anxiety.  Interestingly, the well-known active ingredient, THC, may actually worsen anxiety if too much is consumed.  A research team at Johns Hopkins Medicine has recently found that a solution may also be contained within Cannabis in the form of a terpene known as d-limonene.

The team found that this abundant terpene “significantly reduced overall ratings of feeling “anxious/nervous” and “paranoid” compared with rating the effect of THC alone.”  The findings were the result of a double-blind test and are being touted as a step toward mitigating the “…risks of THC when used in medicine.”

Notably, Cannabis contains over 100 different terpenes, with their effects on THC and CBD largely unknown.  Moving forward, the study of these compounds will continue, hopefully providing further insights for safe consumption, like the ones involving d-limonene and its ability to keep anxiety in check.

Protecting Brain Cells

For decades, Cannabis use has been, largely anecdotally, linked with killing brain cells.  While this may be true in certain instances, it has yet to be proven.  Interestingly, a recent study actually shows that Cannabis may hold the key to protecting brain cells from various ailments, which include,

  • traumatic brain injuries
  • Alzheimer's
  • Parkinson's

More specifically, scientists at the Salk Institute have released a study supporting this through experimenting with certain cannabinoids like cannabinol (CBN).  The team found that CBN boasts ‘neuroprotective' properties by preventing the degradation of mitochondria – a process directly responsible for the death of brain cells.

Promisingly, the team also created a quartet of its own CBN analogs, which boasted even better neuroprotective properties, giving hope that they may one day be a viable treatment for sufferers of either traumatic brain injuries or neurodisorders.

Increased Acceptance = Increased Understanding

As mentioned, our understanding of Cannabis and its potential as a medication has greatly increased over the past few years alongside its broader acceptance among the public.  This acceptance continues to grow as Cannabis has been legal for recreational use in Canada in 2018.

In the United States, acceptance has also grown – albeit not to the extent seen north of the border.  While it is legal in various states, it remains illegal on a Federal level.  Notably, this has become a talking point as of late among certain politicians and presidential candidates like RFK Jr., who are looking to follow Canada's steps regarding its legality.  Regardless of whether this happens, the fact remains that increased acceptance is leading to an increased understanding of the drug/medication, resulting in promising findings.


Cannabis Specialists

While the fervor surrounding the Cannabis has waxed and waned over the past few years, a few companies have managed to establish themselves as important and resilient industry fixtures.  The following are examples of such companies that have done just that.  For a more thorough look at industry participants, make sure to visit our look at the top stocks in this growing market.

*Figures provided below were accurate at the time of writing and are subject to change.  Any potential investor should verify metrics*

1. Canopy Growth Corporation

finviz dynamic chart for  CGC

Market CapForward P/E 1 Yr.Earnings Per Share(EPS)
709,782,765-1.29$-15.12

Canopy Growth Corporation, headquartered in Smiths Falls, Ontario, is a premier global cannabis company that has broadened its offerings to include a variety of cannabis and hemp products.  Facing the common industry challenges of regulatory changes and market volatility, Canopy has strategically streamlined operations through workforce reductions and facility closures, alongside refocusing on its most lucrative markets.  Despite these challenges, the company has maintained a robust brand presence and continued to invest in innovation, showcasing its resilience and adaptability.

As an investment, Canopy Growth is attractive due to its diverse product portfolio, strategic partnerships like the one with Constellation Brands, and an expanding global footprint, particularly in the U.S. CBD market.  These factors, combined with the anticipated growth in the global cannabis market, position Canopy Growth as a compelling option for investors seeking exposure to the cannabis industry, offering potential as the market continues to mature and stabilize.

At the time of writing, CGC was listed by the majority of analysts as a ‘Hold'

2. Tilray Brands

finviz dynamic chart for  TLRY

Market CapForward P/E 1 Yr.Earnings Per Share(EPS)
1,239,905,362-5.77$-0.44

Tilray Brands, Inc., another global pioneer in cannabis research, cultivation, production, and distribution, has emerged as a significant player in the cannabis industry.  Following its merger with Aphria in 2021, the company has solidified its position, leveraging enhanced production capabilities and an extensive distribution network to meet medical and recreational cannabis demand.  Despite facing the volatility typical of the burgeoning cannabis market, including price fluctuations and competitive pressures, Tilray has continued to expand its product lines and explore new market opportunities, focusing on strategic acquisitions and partnerships that enhance its market reach and operational efficiencies.

For investors interested in the cannabis sector, Tilray Brands presents a compelling case due to its aggressive growth strategy and proactive management of market challenges.  The company's efforts to build a diversified business, from pharmaceutical cannabis applications to consumer packaged goods, and its ongoing expansion into international markets position it well for long-term growth.  These initiatives, coupled with its established presence in key markets, make Tilray a noteworthy investment opportunity as the global cannabis industry continues to evolve and expand.

At the time of writing, TLRY was listed by the majority of analysts as a ‘Buy'