The cannabis sector continues to be one of the most attractive places to invest as it continues to be the fastest growing industry in the world.
Although investing in the cannabis industry might be an easy decision for some, most investors are still cautious since cannabis is still considered to be illegal at the Federal level.
Why Invest in the Cannabis Industry?
Many investors have asked this question and to us, the answer is simple…the cannabis industry is in the early innings of a multi-decade growth cycle that will create more millionaires than the tech boom in the 1990s.
Although the opportunity is attractive, these companies are in their developmental stage and are speculative in nature. The most important rule when it comes to cannabis stocks is to create a plan and a strategy for investing.
Investors cannot analyze cannabis stocks the same way that they analyze other companies. Some of the metrics to look at include its management team, balance sheet statement, and patents and intellectual property.
We believe that many investors fail to recognize value in company intellectual property and this is primarily due to the complicated valuation methodology.
A Company with Significant Intellectual Property Value
Last week, Lexaria Bioscience (LXRP) received a notice of acceptance from the Australian Patent Office with a patent issuance date expected in June, 2017. This is the company’s first patent acceptance outside of the United States and Lexaria expects this to be the start of a series of successful international patent awards.
The notice of acceptance covers Lexaria patent application entitled Food and beverage compositions infused with lipophilic active agents and methods of use thereof, which has been accepted with the same set of claims previously issued by the United States Patent and Trademark Office (USPTO) in late October.
The patent issued pertains to Lexaria’s method of improving bioavailability and taste of certain cannabinoid lipophilic active agents in food products. The patent protects Lexaria’s intellectual property related to the infusion of cannabinoid compounds in edible products, the primary focus of its business.
Lexaria’s technology makes cannabis edibles taste better and causes the active ingredients to enter the bloodstream more quickly and much more effectively.
Lexaria CEO Chris Bunka said, “Lexaria’s technology is needed not just in the US, but throughout the global cannabis sector, which is why we have patent applications in place in 42 countries around the world. Our international applications offer the safety of unparalleled diversification to our supporters that even individual national market leaders cannot offer.”
A Stock to Watch
MassRoots (MSRT) is a company we continue to remain favorable on as we believe its intellectual property is significantly undervalued.
We are favorable on the rapid adoption to MassRoots’ platform and believe that recent announcements represent important steps for the company’s long-term opportunity .
We remain favorable on the shares after falling more than 3% on Friday due to: 1) its valuation is attractive after the recent sell-off, 2) the company continues to execute on previously stated initiatives, 3) fundamentals are improving as the company lowers its burn rate, and 4) expectation for continued growth.
Important Investor Disclosures
Disclosure. Compensated Affiliate. This report was authored by and is property of StoneBridge Partners LLC. All information and data relied upon in drafting this report is publicly available. The author believes and considers its sources to be reliable, but does not guarantee the accuracy or completeness of any information contained in this report. Any and all information, data, analyses and opinions are provided for informational purposes only and is not intended, in any manner, as investment advice. Any projections or other information generated by StoneBridge Partners LLC regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. None of the material contained in this report is intended as a solution or offer to sell or purchase a specific stock or any other investment. This report is not directed to, or intended for distribution or use by, any person or entity that is a citizen, resident or located in any municipality, state, country or other jurisdiction where the distribution, publication, availability, or use of this report is contrary to any governing law or regulation. The securities discussed in this report may not be eligible for purchase and/or sale in certain jurisdictions or by particular individuals. It is important that you check any and all governing laws and/or regulations that may be applicable in your jurisdiction. Investing in securities of issuers organized outside of the United States, including ADRs, entail certain risks. The securities of non-United States issuers may not be registered with, nor be subject to the reporting requirements of the United States Securities and Exchange Commission. Please contact a Financial Advisor for professional adviceregarding any and all securities investments. This report is intended for informational purposes only. StoneBridge Partners LLC’s officers, directors, employees, affiliates, or subsidiaries may have positions in securities covered by StoneBridge Partners LLC. StoneBridge Partners LLC receives compensation from the company and/or has a position in the securities mentioned in this report
Source: Technical 420