Why the Creso Pharma Ltd share price rocketed 7.5% today

After a series of declines, the Creso Pharma Ltd (ASX: CPH) share price has bounced back to life today and has been one of the biggest movers on the market in morning trade.

At the time of writing the medicinal cannabis company’s shares are up 7.5% to 42.5 cents.

What happened?

This morning Creso announced that it has signed a letter of intent with Switzerland-based Cannapharm AG to provide patients in the Asia-Pacific and Latin America access to high quality medicinal cannabis products.

These countries include Australia, New Zealand, China, Brazil, Chile, Colombia and Mexico. The products will be used to treat a variety of conditions as approved by prescribing physicians under relevant local legislations.

Creso’s management believes this gives the company a first-mover advantage in exporting best-in-class pharmaceutical-grade medicinal cannabis products.

Should you invest?

Today’s news is undoubtedly a big step forward for the company. If it does result in a first-mover advantage then Creso could be in a great position to profit if medicinal cannabis products become the norm.

While I do like Creso and rival Auscann Group Holdings Ltd (ASX: AC8) and believe they have significant potential, I’m holding off an investment in the industry until such a time that medicinal cannabis becomes more accepted by prescribing physicians.

In the meantime I think an investment in one of these quality blue-chip shares which have been growing like wildfire could be a great option for investors.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

HOT OFF THE PRESSES: My #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.