On Friday, September 18th, the psychedelics industry bellwether Compass Pathways (CMPS) went public on the NASDAQ in an IPO at $17 per share raising $146.6 million. CMPS opened for trading at 12:30PMEDT that day at $23.40 per share up 37.65% from its IPO price. Over the following 3 1/2 hours, CMPS rallied an additional 23.93% to close at $29 per share, up 70.59% from its IPO price on huge volume of 3 million shares.
CMPS made a tiny dip of 0.59% to $28.83 per share on Monday, September 21st, followed by a huge gain of 33.16% to $38.39 per share on Tuesday, September 22nd. Over the final three days of last week, CMPS gained another 12.45% to finish the week at $43.17 per share.
CMPS is already up 153.94% from its IPO price and its market cap has now surpassed $1.5 billion!
Despite CMPS now being public and already rallying big, its IPO has been surprisingly low profile so far with very limited media attention. For example, one of the biggest scam EV plays on the NASDAQ today is the EV charging company Blink Charging (BLNK), which has a market cap of $270 million (not including outstanding in-the-money warrants) despite only $4.34 million in revenue and a declining footprint of operating EV chargers. Amazingly, global Google search interest for the symbol BLNK over the last 7 days has been double the search interest for CMPS. This tells us it is mainly large institutional investors buying CMPS and the average retail investor isn’t aware that CMPS has gone public yet.
There will be many huge catalysts for the psychedelics space in the weeks ahead, leading up to the 2020 election. Look for CMPS to rally another 50%-100% higher by year-end, but in our opinion the psychstock with the most potential from its current share price is Numinus Wellness (TSXV: NUMI).
NUMI went public on May 20th at $1 per share and traded 11.747 million shares that day at prices of between $0.80 and $1.55 per share. Unfortunately, overly enthusiastic retail investors who entered above $1 got screwed because the company raised its initial $5.745 million in equity financing at $0.25 per share. Most of those initial private placement investors who were short-term minded and eager to sell, are already gone. On September 10th, NUMI raised an additional $4.6 million at $0.25 per share, but those shares are restricted until January 2021.
NUMI bottomed on August 26th at $0.185 per share, which is a bottom that we expect to hold for the long-term. NUMI immediately began to bounce from $0.185 per share and closed August 26th at $0.195 per share with a 14-day relative strength index (RSI) of 22.12 indicating the stock was extremely oversold. NUMI bounced the following day to $0.21 per share and continued bouncing for four days straight to a September 1st closing price of $0.26 per share. After trading sideways for weeks, NUMI released huge news on Friday and had its biggest up day in months rising 18.75% to $0.285 per share on very strong volume of 4.271 million shares – its second highest volume day in history!
NUMI surpassed its key breakout point on Friday of $0.26 per share. We consider NUMI to be the second highest quality psychstock after CMPS. With CMPS now worth over $1.5 billion, NUMI deserves your immediate attention at its current enterprise value of only USD$23.38 million.
Past performance is not an indicator of future returns. Psychstocks is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. The parent company of Psychstocks has been compensated by NUMI USD$30,000 cash for a six-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.