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Why the MMJ Phytotech Ltd share price has exploded higher again

Once again the MMJ Phytotech Ltd (ASX: MMJ) share price has been one of the biggest movers on the market this morning.

In early trade the pot stock’s share price has risen a massive 13%, bringing its month-to-date return to a staggering 169%.

Today’s announcement reveals that MMJ Phytotech’s partner HL Pharma Pty Ltd has received its medicinal cannabis import licence from the Australian Department of Health. This is a significant step towards supplying the Australian medicinal cannabis market.

The next step for the company will be to seek approval to supply its cannabidiol capsules to the Australian market via its Swiss subsidiary Satispharm.

This looks set to make it one of the first medicinal cannabis products available on the Australian market, giving the company a first mover advantage.

Should you invest?

Whilst I think the medical cannabis market could prove to be incredibly lucrative in the future, I think the share prices of MMJ Phytotech, Auscann Group Holdings Ltd (ASX: AC8), and Zelda Therapeutics Ltd (ASX: ZLD) may have run a little ahead of themselves right now.

Because of this I am a touch concerned that there could be a spot of profit taking in the near future that drives their share prices sharply lower.

For this reason I’m going to watch this exciting industry from the safety of the sidelines and focus on other areas of the market.

For example, healthcare shares such as Mayne Pharma Group Ltd (ASX: MYX) and Nanosonics Ltd. (ASX: NAN) could be worth a closer look today in my opinion.

Where to invest $1,000 right now

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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Nanosonics Limited. 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.

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