Why the MMJ Phytotech Ltd share price has exploded higher again

The MMJ Phytotech Ltd (ASX:MMJ) share price is once again storming higher in morning trade. Here's why the pot stock is higher today…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »