In early 2015, we highlighted three publicly traded Israeli cannabis companies to watch and we hope you listened!

Although Canadian cannabis stocks have been the story to watch over the last year, Israeli cannabis stocks have been stealing headlines in 2017.  

This comes after two United States traded Israeli cannabis companies, Cannabics Pharmaceuticals (CNBX) and OWC Pharmaceutical Research (OWCP) rallied 842% and 1087%, respectively so far this year.

Despite our bullish view on CNBX and OWCP prior to this rally, we have not seen anything to justify a rally of this magnitude and are cautious at current levels.

What Drives a 19,000% Rally in Less Than Six Months?

Since October 3rd, Cannabics Pharmaceuticals (CNBX) and OWC Pharmaceutical Research (OWCP) have rallied 13,594% and 19,251%.

On October 3, 2016, CNBX traded for less than $0.05 while OWCP traded for less than $0.01. CNBX and OWCP are currently trading at $6.45 and $2.09, respectively.

Although these rallies are tremendous, we think the shares are overvalued and do not think these prices are sustainable in the near term. 

What do these Companies Do?

Cannabics Pharmaceuticals, a U.S based public company, is dedicated to the development of Personalized Anti-Cancer and Palliative treatments. The company’s leading product is Cannabics SR, a long acting medical cannabis capsule designed for cancer patients as a palliative treatment. The company's R&D is based in Israel, where it is licensed by the Ministry of Health for its work in both scientific and clinical research. The company's focus is on harnessing the therapeutic properties of natural cannabinoid formulations and diagnostics. Cannabics engages in developing individually tailored natural therapies for cancer patients, utilizing advanced screening systems and personalized bioinformatics tools.

One World Cannabis, founded in 2014, is an Israeli company focused on the research and development of cannabis-based pharmaceuticals and treatments focused on a wide variety of medical issues. Through its Israeli based fully owned subsidiary, the company is a developer of cannabinoid-based therapies targeting a variety of different medical conditions and disorders. In November, OWCP announced that it was submitting the safety protocol for its psoriasis cream to Israel's national Institutional Review Board. The study is currently underway and the results are expected by the end of March, 2017.

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