The psychedelic medicine sector is booming and so is the interest in the market by investors. Pioneer clinical studies and research only help further this market along, bolstering its momentum. If you have an interest in investing in the market, here are a few things to take note of.
Track projections and promises
This may sound complicated, but it actually isn’t. Bonus: you don’t need training in finance to understand it. Tracking a firm’s profitability through its yearly projections is a simple way to find out whether a company’s results match its talk. Firms that fail to attain the targets they set for themselves yearly may not be a good investment option. This may indicate problems in the firm.
Look out for executive selling
When the revenue of a company that you’ve invested in is a long way off, executive selling should always be at the back of your mind. This will save you from incurring any major losses when a company’s stock starts declining rapidly. It should be noted that executive insiders are required to disclose when they are either selling or buying their shares.
Note that they do, though; take, for instance, in 2018 when the executive team at Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) mass dumped its stock in September.
Remember that price targets, equity analysts aren’t always right
Investment banks have equity analysts whose work is to study stocks from different firms and give price targets. These targets are usually provided 12 months in advance. However, it should be noted that the price targets are never guarantees of what will happen.
In many cases, the targets turn out to be wrong, so you shouldn’t use them as your basis for investment. Additionally, analysts may sometimes be “persuaded” to embellish data for some firms, so it’s important to do your due diligence.
Beware of in-excess paid promotions
This may increase the value of a company’s stock in the short term but should not be used as an indicator of success. This is not to mean that paid promotion is bad. As an investor, however, you should be cautious of firms that are taking part in aggressive promotion. This also applies to firms that are spending lots of funds on advertising.
Look out for press releases that are hollow
As an investor, you should be cautious when it comes to companies that are constantly in the media, announcing press releases that have no value to the company. They probably aren’t putting in the work; instead, they’re working on dazzling you. So ensure you conduct your own research diligently before investing.
Increasing awareness among North Americans about mental health has spurred entities such as Pure Extracts Technologies Corp. (CSE: PULL) to enter the space of developing and bringing to market psychedelic medicines as well as functional mushroom products.
NOTE TO INVESTORS: The latest news and updates relating to Pure Extracts Technologies Corp. (CSE: PULL) are available in the company’s newsroom at https://ibn.fm/PULL
About PsychedelicNewsWire
PsychedelicNewsWire (PNW) is a specialized content distribution company that (1) aggregates and distributes news and information on the latest developments in all aspects and advances of psychedelics and their use, (2) creates PsychedelicNewsBreaks designed to quickly update investors on important industry news, (3) leverages a team of expert editors to enhance press releases for maximum impact, (4) assists companies with the management and optimization of social media across a range of platforms, and (5) delivers unparalleled corporate communication solutions. PNW stays abreast of the latest information and has established a reputation as the go to source for coverage of psychedelics, therapeutics and emerging market opportunities. Our team of seasoned journalists has a proven track record of helping both public and private companies gain traction with a wide audience of investors, consumers, media outlets and the general public by leveraging our expansive dissemination network of more than 5,000 key syndication outlets. PNW is committed to delivering improved visibility and brand recognition to companies operating in the emerging markets of psychedelics.
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