Guy Adami Is Bullish On GW Pharmaceuticals

Guy Adami spoke on CNBC's "Fast Money" about GW Pharmaceuticals PLC- ADR GWPH.

The company has a brain cancer trial for medical marijuana and it hasn't released the data yet. Adami thinks the company might release the data next week. GW Pharmaceuticals had a capital raise a while back and its balance sheet looks pretty good, explained Adami. He is a buyer of the stock on the idea that the company is going to have some medical efficacy in its trials, which would force DEA to back off.

See Also: It's High Time For The Cannabis-Related Drug Pipeline

Goldman Sachs thinks a take-out price for the stock is at $350. If the company manages to prove that it has growth potential, it could become a potential target, believes Adami.

He added that there is also some downside risk for GW Pharmaceuticals. If marijuana is legalized across the country, people aren't going to need the medical marijuana companies.