InterCure Stock: Why This Israeli Marijuana Stock Gained 100% in January and 1,000% in 2018
Israeli Marijuana Stocks
It’s often the case that we forget just how global the marijuana trade is. Sure, there’s still a long way to go (especially on the recreational cannabis front), but countries around the world have begun legalizing marijuana to varying degrees, opening the doors for global marijuana stocks to flourish.
Today, we’ll take a look at InterCure Ltd (OTCMKTS:IRCLF, TLV:INCR) and Israeli marijuana stocks more broadly, with InterCure stock being one of the top performers in the market.
We’ll get to IRCLF stock almost doubling its value in January, but first, here’s an overview of the Israeli marijuana stock market.
Israel recently became one of just a handful of countries—including Canada and the Netherlands—to legalize medical marijuana exports. The bill was passed on January 27, which sent many Israeli marijuana stocks flying. (Source: “Israel Finally Approves Cannabis Exports, Stockholders Rush to Cash In,” Haaretz, January 27, 2019.)
While this was a big move for the country, it was hardly unexpected. Israel legalized medical marijuana in the 1990s, making it one of the first countries to make the drug freely available for medical use.
So it’s safe to say that Israel is pretty comfortable with marijuana companies, having had decades of experience with them at this point. It’s also safe to say that Israel is one of the more favorable countries toward marijuana, meaning that recreational legalization may not be far behind.
While that is pure speculation, Israel is closer than most countries when it comes to following in Canada’s footsteps toward recreational cannabis legalization, just by virtue of how long the drug has been available medically.
In any case, Israeli marijuana stocks are in a very strong position right now, due to the recent legalization of medical marijuana exports. Combine that with the possibility of recreational legalization in the future, and you have pot stocks that are full of potential.
Investing early in Israeli marijuana stocks could lead to gains not seen since Canada first announced that it was going to legalize pot.
InterCure Stock
With the landscape set, let’s dive deeper into one of the premier Israeli marijuana stocks: InterCure.
The stock has seen its value nearly double in January, off the back of the medical marijuana export bill being passed in Israel—alongside an overall bullish sentiment in the marijuana industry.
But that pales in comparison to its 1,000% jump in 2018.
Many pot stocks have seen huge gains in the past month, but IRCLF stock stands up, due to its insane gains last year.
And there’s a lot going for InterCure stock that leads me to believe that more jumps are on the way.
The most prominent thing about the company is its chairman, former Israeli prime minister Ehud Barak.
Having such a high-profile politician at the head of the company not only lends an air of legitimacy, but it helps give the company access to political channels that no other competitor could hope to match. It would be like if Barack Obama were to suddenly head a pot company; you can’t compete with that type of influence.
On top of that, the company has solid fundamentals.
InterCure is looking to expand into 10 countries in the next two years as it ramps up medical marijuana exports. (Source: “Israel’s InterCure to ramp up medical cannabis production: chairman,” Reuters, January 28, 2019.)
InterCure, a holding company of small medical firms, is looking to push its reach globally.
“In some countries, regulations will demand that plants will be grown on their own sovereign soil,” said Barak. “Whoever will enter first and take market share will have a huge edge over others.”
The company wants to produce 100 tonnes of medical cannabis by 2020 as it expands its marijuana farms in Israel and abroad—with a specific focus on pharma-grade cannabis.
Barak mentioned that InterCure is looking into making a pain medication derived from cannabis, a market rich in potential, considering the global opioid crisis.
Israel is a fine location to grow marijuana crops, due to its climate and already extensive agriculture infrastructure.
While the Great White North may have been the first country through the door with the legalization of recreational pot, the “White” part (as in snow) is hardly ideal for growing pot. Israel, naturally, does not have those sorts of climate obstacles.
InterCure stock is no stranger to massive gains. It shot up by over 1,200% in 2018, mimicking the breakneck-speed growth that Canadian marijuana stocks experienced in 2015.
Furthermore, InterCure has a relatively small valuation ($181.0 million), when taking into account the global potential of pot. Israel is a small country, but if InterCure can become a major player in the global marijuana market, expect its value to rise sharply.
Another huge boon for IRCLF stock is the company’s upcoming listing on the Nasdaq, which will expose the company to capital that would otherwise be denied to it on Israeli stock exchanges.
The company is looking to raise $50.0 million in order to help jump-start its production of marijuana to fill the growing global need—especially now that Israel will permit companies to ship worldwide. The Nasdaq move, set for mid-2019, is being made in order to help generate that capital.
All these factors combine to make InterCure stock a pot company worth watching.
(Data source: “InterCure Ltd. (INCR.TA),” Yahoo! Finance, last accessed January 31, 2019.)
I won’t pretend to be an expert on Israeli marijuana law—or the state of the industry in that part of the world. My sights are firmly set on the North American market, since that is where we’re going to see the biggest marijuana companies emerge.
Having said that, there is clearly ample opportunity for huge returns around the globe when it comes to marijuana stocks, and InterCure stock appears to be among the best.
Analyst Take
The global marijuana business is expanding day by day, with promising new investment opportunities opening around the world.
Israeli marijuana stocks are among the first in a long line of valuable, high-growth-potential pot companies that will be emerging in the years to come.
Prime among those is InterCure. With heavy political connections, deep pockets, a globally-minded marijuana expansion strategy, an upcoming move to the Nasdaq, and a favorable situation on its home turf, InterCure stock may become one of the biggest under-the-radar marijuana winners in 2019.
