- GW Pharmaceuticals Undeservedly Caught Up in the Volatile Marijuana Stock Fad 

- Epidiolex shows strong initial growth; could potentially drive stock higher long term

- GWPH pipeline attractive; if approved in U.S. Sativex could fuel additional growth

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Wall St fads come and go. Twenty years ago saw the dotcom boom, which was preceded in the ‘90s by the gambling/casino craze. Bowling stocks—yes, bowling—were all the rage in the late 1950s. So I’m told.

The latest fashion is marijuana. Stocks tied to its increasing state by state legalization quickly blow hot and cold on positive or negative news in this burgeoning area. Shares of pot growers, suppliers, and retail outlets are all volatile.

Caught up in this fad—though it shouldn’t be—is U.K.-based GW Pharmaceuticals (GWPH), a commercializer of therapeutic products from cannabinoid—the natural compound that includes the active constituents of cannabis. Pot stock, right? Not really. It doesn’t contain THC, or tetrahydrocannabinol, the chemical responsible for marijuana's psychological effects. GWPH has U.S. and European approved products for medicinal use. Its ADRs trade in the U.S.

Though not a pot stock, it nevertheless has a good-sized weighting (4%-7%) in some volatile mariju...

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