NEW YORK (TheStreet) -- After rallying higher on Tuesday following positive reports about its cannabinoid epilepsy drug, Epidiolex, shares of GW Pharmaceuticals (GWPH) are lower by roughly 5% on Wednesday after the company announced a secondary offering.
On CNBC's "Cramer's Stop Trading" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said investors want to buy the stock on its secondary offering.
Why? Well, it's simple. Cramer reasoned that GW Pharmaceuticals is the "only really legitimate" marijuana company for investors to put their money in. The British company is also doing very well, he added.
According to the CEO, the dividend is still safe, Cramer said. But its private label brands are doing "poorly," consumer volume was weak, and the numbers for Chef Boyardee were "terrible."
He concluded that canned foods are simply not selling well, because they do not give off the impression of natural and organic food.
-- Written by Bret Kenwell in Petoskey, Mich.