Tuesday , 17 May 2022

Psychedelic Stocks DOWN 10% So far In May; Now DOWN 59% YTD

Psychedelic companies are clinical-stage startups still in the product research and development of novel compounds with no products and no revenue and requiring a great deal of money to fund their R&D expenses. Hopefully, this article will assist you in your due diligence to arrive at a prudent investment decision.

By Lorimer Wilson, Founder & Managing Editor of munKNEE.com and a frequent contributor to eResearch.com, usfinancepost.com, bitgrum.com and talkmarkets.com.

There are one hundred (100) psychedelic and marijuana drug companies in the clinical stages of research and development of treatments for a wide variety of mental illnesses of which 40 are based on the use of marijuana THC, and 60 (see here) based on the use of one or more of 10 different psychedelic substances (read 10 Psychedelic Substances And The 36 Companies Researching Them).

You will note that each constituent in the analyses below has 4 areas of additional information that are imperative for any individual considering investing in this sector:

  1. The company name is hyperlinked to its website to provide you with a description of the company and an analysis of its stock.
  2. The trading symbol is hyperlinked to additional financial data and commentary on the company (where available).
  3. The Chance of Financial Distress percentage is sourced from macroaxis.com (visit the site and type in the stock symbol to obtain detailed financial data on the financial health of the company).
  4. The Analyst Consensus is sourced from stockanalysis.com (visit the site and type in the stock symbol to obtain a detailed consensus of their recommendations and projections). 

The munKNEE Psychedelic Compounds-Based Stocks Index

The constituent performances since the end of April (i.e. MTD) and YTD are presented below in descending order:

Group 1 (market caps between $50M and $300M)

  1. Numinus (NUMIF): Down 8.6% MTD; (Down 23.8% YTD)
    • Chance of Financial Distress in the next 2 years: +39%
    • Analyst Consensus: No analysts following NUMIF
  2. Field Trip (FTRP): Down 17.9% MTD; (Down 64.6% YTD)
    • Chance of Financial Distress in the next 2 years: +67%
  3. Seelos (SEEL): Down 6.5% MTD; (Down 64.4% YTD)
    • Chance of Financial Distress in the next 2 years: +52%
    • Analyst Consensus: 12 stock analysts currently rate SEEL as a BUY.
  4. Allied (ALID): Down 1.4% MTD; (Down 59.3% YTD)
    • Chance of Financial Distress in the next 2 years: +24%
    • Analyst Consensus: No analysts following ALID
  5. Cybin (CYBN): Down 10.3 MTD%; (Down 56.7% YTD)
    • Chance of Financial Distress in the next 2 years: +62%
    • Analyst Consensus: 14 stock analysts currently rate CYBN as a BUY.
  6. Zynerba (ZYNE): Down 11.3% MTD; (Down 56.6% YTD)
    • Chance of Financial Distress in the next 2 years: 6%
    • Analyst Consensus: 12 stock analysts currently rate ZYNE as a BUY.
      • Analyst Consensus: 10 stock analysts currently rate FTRP as a BUY.

The 6 constituents in Group 1 are DOWN 10.3% MTD, on average, and are now DOWN 58.9% YTD.

Group 2

Their performances are presented below in descending order MTD with their YTD performances in brackets:

  1. Atai (ATAI): Down 10.0% MTD; (Down 49.4% YTD)
    • Chance of Financial Distress in the next 2 years: +52%
    • Analyst Consensus: 19 stock analysts currently rate ATAI as a BUY.
  2. GH Resources (GHRS): Down 18.0% MTD; (Down 48.6% YTD)
    • Chance of Financial Distress in the next 2 years: +39%
    • Analyst Consensus: 10 stock analysts currently rate GHRS as a BUY.
  3. Mind Medicine (MNMD): UP 3.8% MTD; (Down 39.9% YTD)
    • Chance of Financial Distress in the next 2 years: +62%
    • Analyst Consensus: 8 stock analysts currently rate MNMD as a BUY.
  4. Compass Pathways (CMPS): Down 8.4% MTD; (Down 62.4% YTD)
    • Chance of Financial Distress in the next 2 years: +58%
    • Analyst Consensus: 17 stock analysts currently rate CMPS as a BUY.

The 4 constituents in Group 2 are DOWN 13.2% MTD, on average, and are now DOWN 54.1% YTD.

A Word of Caution

As I mentioned in the introduction, and it is worth repeating, most psychedelic companies are clinical-stage startups still in the product research and development of novel compounds, have no products, have no revenue and require a great deal of money to fund their R&D expenses so do your own in-depth due diligence and, hopefully, the information provided above information will help you arrive at a prudent investment decision.

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