After GW Pharmaceutical reported positive Stage 3 Clinical results for its cannabidiol product, Michael Berger, of Technical420.com, points out how this should change the current Schedule I label on cannabis and serve as a catalyst for the cannabis industry.

After GW Pharmaceuticals (GWPH) reported overwhelmingly positive results from its first Phase 3 study on its Epidiolex product, several cannabis stocks rallied and we think this is just the start of something big.

Our rationale is based off of GWPH proving that cannabis should not be labeled as Schedule I substance. According to the DEA, Schedule I substances have high potential for abuse, no accepted medical treatment use, and a lack of accepted safety for use of the substance under medical supervision.

Reduces Seizures by 39%

GWPH said Epidiolex reduced the number of convulsive seizures in children with Dravet syndrome by 39%. Epidiolex is a pharmaceutical form of cannabidiol (CBD) which is one of the active ingredients in the cannabis plant.

Not only did these results prove that the cannabis plant has medical benefits but GWPH also developed an effective treatment for a debilitating illness that does not have an approved treatment. GWPH is also testing Epidiolex in Lennox-Gastaut Syndrome and Tuberous Sclerosis Complex, other rare forms of epilepsy.

Nasdaq Biotech Cannabis Stocks Rally

The results announced by GWPH had a significant impact on overall market sentiment and served as a catalyst to not only GWPH, but the entire cannabis industry.

Even though GWPH ended the day up more than 120%, they were not the biggest winner. Nasdaq traded Zynerba Pharmaceuticals (ZYNE) ended the day up approximately 150%. Insys Therapeutics (INSY) also benefited from this news and shares ended the day up 11%.

Time to Put CBD-Related Stocks on Your Radar

After analyzing the performance of more than 300 publicly traded cannabis stocks yesterday, we noticed that the biggest winners were levered to either the biotech or CBD industry. Some OTC stocks we want to highlight include:

Cannabis Sativa, Inc. (CBDS): Even though CBDS did not announce any news yesterday, shares rallied more than 240%. The company sells the Wild Earth Naturals line of CBD Water and are engaged in the research, development and licensing of specialized natural cannabis products.

CV Sciences, Inc. (CANV): Shares rallied more than 75% yesterday even though CANV did not announce any new developments. The company is focused on developing drugs that contain CBD and selling CBD-based consumer products.

Cannabis Science, Inc. (CBIS): After GWPH reported favorable results, CBIS applauded the company’s success and said it would speed up the regulatory process due to more research being made available for regulators. CBIS specializes in the development of cannabis-based medicines and the company said this will pave the way for them to move forward with their own testing in Europe and the United States. CBIS ended the day up more than 48% and we are monitoring trading closely.

Do Your Due Diligence

The cannabis industry is one of the most rapidly developing and controversial industries in the United States. Although there is a lot of opportunity in this sector, investors and traders need to their due diligence before creating a position.

On March 29-30, 2016, the MoneyShow is producing the Cannabis Investing Virtual Event in association with PR Newswire. The event features an impressive lineup of experts, analysts, and company executives. Click here to register for this free event and take advantage of an opportunity to learn about some of the top cannabis investments.

By Michael Berger, President and Founder, Technical420.com