Financial Expert Recommends Watching These High-Potential Psychedelic Stocks For Significant Upside

Financial Expert Recommends Watching These High-Potential Psychedelic Stocks For Significant Upside

Tim Sykes, a penny stock trader and teacher who became a self-made millionaire by the age of 22, recommends watching certain high-potential psychedelic stocks for considerable upside.

Sykes questions what’s going on with psychedelic stocks these days. He points out that many more firms are joining the space. In a new blog post, Sykes has looked into whether these stocks could be the next hot sector.

However, Sykes does acknowledge that he wouldn’t go too far yet with these recommendations, but he does present a few reasons for why he’s closely watching the sector and biotech firms for “future potential.”

He writes in his blog that there’s now a psychedelic ETF, called the Defiance Next Gen Altered Experience ETF (NYSE: PSY). Sykes also mentions that TV or media “talking heads” are discussing the potential of psychedelics and one of these stocks happens to be an IPO backed by a prominent billionaire investor.

Additionally, Texas government agencies have now given the green light to allow research to be conducted on psychedelics as a treatment for people suffering from post-traumatic stress syndrome or PTSD.

According to Sykes’ assessment, these may all be “signs of massive potential” in the psychedelic space as it continues to gain attention from mainstream investors.

However, the science behind these developments is in its early stages, Sykes clarifies. The majority of the firms in this nascent sector are considered early-stage businesses that trade on over-the-counter or OTC markets (that are not as well regulated or structured).

Sykes further notes that you won’t be able to trade most of these so-called psychedelic stocks via digital investment platform Robinhood.

But as new scientific breakthroughs take place, we might see more “real” or established firms getting on board these seemingly high-potential trends. That’s why Sykes has been doing his research on this sector, he revealed

Sykes recommends familiarizing yourself with these firms and the special treatments they’re working on at the moment. That way you’ll be well-prepared when the “time is right,” he claims.

According to Sykes, when “news” hits any one of these stocks, it could “offer sympathy plays in the entire sector.” And as demand for psychedelic treatments continues to rise, and research teams begin finding more breakthroughs, we might see even more firms “jump on the hype train,” Sykes predicts.

In order to get yourself ready for this promising new sector, Sykes has provided a rundown on what he considers to be a few “must-know” psychedelic terms.

Here’s the summary from Sykes:

  • Psilocybin is the hallucinogen found in certain mushrooms that make them “magic.”
  • Ketamine is a sedative drug that leads to a trance-like state. It’s frequently used in anesthesia.
  • Ibogaine is a naturally-occurring psychoactive substance that can be found in certain plants.
  • MDMA is a psychoactive substance that’s often used as a recreational drug. It’s commonly referred to as ecstasy or molly to party people.
  • DMT is a chemical that occurs naturally in our brains and also in certain plants and animals. It’s also used as a recreational drug. Its effects are mostly short-term, but sometimes lasting just a few minutes.
  • LSD is a highly potent hallucinogen and often leads to major changes in how people perceive reality.

As noted by Sykes in his blog post, here’s his list of the top 9 psychedelic stocks to keep an eye on in the future.

Psychedelic Stocks #1: Compass Pathways (NASDAQ: CMPS)

Compass Pathways is creating a psilocybin formula that could begin to treat patients with treatment-resistant depression. The firm’s formulation is presently in Phase 2b clinical trials.

As mentioned in Sykes’ blog, it’s one of the stocks that are included in the psychedelic ETF that he has mentioned. It’s also among the highest-priced stocks.

Sykes adds that he’s looking forward to potentially seeing a “multi-month breakout” over the resistance level of $40.50 — which could happen with a major news development and relatively high volume.

Psychedelic Stocks #2: Mind Medicine (NASDAQ: MNMD)

Mind Medicine is a biotech firm that works on various psychedelic therapies in order to treat addiction as well as mental illness. The company is developing different treatments using psilocybin, DMT, MDMA, and LSD.

According to Sykes, it might be one of the most well-known psychedelic penny stocks currently in the market. He reveals that this stock received a lot of attention and traded very high volumes when it got uplisted from the OTC markets to the Nasdaq in April of this year. The stock is also included in the psychedelic ETF, Sykes confirmed.

On June 17, 2021, the firm had revealed that it had hired a new Scientific Advisory Board member.

The trading volume for the stock has been quite high since that time, particularly after it was listed on Nasdaq. The stock has also been trading sideways or fairly flat for the past several  months. A breakout above the $4 mark might result in an even bigger move, Sykes predicts.

Psychedelic Stocks #3: Cybin Corp (OTCQB: CLXPF)

CLXPF is a Canadian psychedelic mushroom stock, Sykes noted while adding that it’s working to create psilocybin capsules and tablets that could treat psychiatric and neurological conditions such as anxiety and depression.

On May 18, 2021, the firm initiated its Phase 2 trials for its psilocybin formulation in order to treat depression (were reportedly approved in Jamaica).

The firm is also working on acquiring various patents. In May of this year, it had submitted its 12th patent application in order to protect its delivery methods. Also in May, the firm had filed for a global patent to protect its ongoing psychedelic drug developments.

Additionally, the firm had announced that it will be targeting anxiety disorder indications with its “proprietary psychedelic molecule CYB004.”

The company will be sponsoring a study that aims to treat COVID-19 frontline physicians and other healthcare professionals who may be dealing with depression, anxiety, burnout, or other mental issues.

Sykes adds that he’ll be watching CLXPF for “continued upside.”

Psychedelic Stocks #4: Field Trip Health, Inc. (OTCQX: FTRPF)

Field Trip Health is a Canada-based psychedelic firm. It runs clinics for psychedelic therapy and works on finding plant-based psychedelic treatments.

Sykes added that he’ll also be watching for this stock’s reaction to the news before planning any trades.

Psychedelic Stocks #5: Mydecine Innovations Group (OTCPK: MYCOF)

Mydecine mainly focuses on creating nature-based medicines to treat mental illness. The firm had introduced its AI-enabled drug discovery program on June 16, 2021.

As noted in a release:

“The program is focused on developing artificial intelligence/machine learning (AI/ML) supported drug screenings, including both the ability to build drugs from the receptor up and assess drugs around the receptors of Mydecine’s choosing.”

The stock had been trading near its lows, however, it has been finding support and formed a double bottom at approximately $0.20. Sykes says he’s “watching for it to have a first green day with a catalyst and high volume.”

Psychedelic Stocks #6: Numinus Wellness (OTCPK: LKYSF)

Numinus Wellness is also a Canadian psychedelic firm that offers product research and development, cultivation, and testing of cannabis and psychedelics.

According to Sykes, it’s a “beaten-down” stock that trades fairly low volumes, but he’ll be watching this one for “a potential trade if the overall sector heats up.”

Psychedelic Stocks #7: Seelos Therapeutics, Inc. (NASDAQ: SEEL)

SEEL is a biotech firm that focuses on finding treatments for nervous system disorders. One of SEEL’s main candidates is an intranasal ketamine treatment for patients suffering from suicidal ideation. These people may also be suffering from major depressive disorders.

The firm’s stock was added to the psychedelic ETF on June 1, 2021.

The stock has seen a steady uptrend for most of this year and was able to reach a new 52-week high of $6.60. But its price has retraced and is now trading fairly flat or sideways at about $3. Sykes says he’d like to see it break out of its current channel over $3.60 for more “potential upside.”

Psychedelic Stocks #8: Mind Cure Health Inc. (OTCQB: MCURF)

MCURF is a Canadian psychedelic mushroom stock. It’s a biotech firm that’s currently developing and distributing mushroom powders. Additionally, it’s developing synthetic ibogaine which may be used while conducting psychedelic research.

The firm has also created two ketamine-based protocols for treating pain and depression. Ketamine is a general anesthetic. Sykes says he’ll also be keeping an eye out for this one for a potential “breakout over 40 cents with high volume.”

Psychedelic Stocks #9: ATAI Life Sciences N.V. Common Shares (NASDAQ: ATAI)

ATAI is a German biotech firm that’s working on various psychedelic treatments for anxiety, depression, and addictions. The firm is also an investor in Compass Pathways (NASDAQ: CMPS) and holds around a quarter or 25% of its shares.

ATAI is notably backed by billionaire investor and PayPal founder Peter Thiel. The company had offered 15 million shares at $15 in its recent initial public offering (IPO). On its first day of trading, the stock had opened at $21 and recorded a high of $22.91.

Since it recently went public, there’s not too much resistance on the chart. Sykes confirms that he’ll also be keeping a close eye on this stock as it could “make new highs over $22.91.”