Pot stocks CRUSHED: Here’s what you need to know

It has not been a great day to be a shareholder of Australia’s leading pot stocks. After several weeks of highs, it seems as though many investors have exited the space in a hurry.

Here is the state of play in the industry today:

The Auscann Group Holdings Ltd (ASX: AC8) share price has dropped 5.5% to 59 cents. Today’s decline means the pot stock has lost around 34% of its value in the last 30 days.

The Creso Pharma Ltd (ASX: CPH) share price is down 6.5% to 58.5 cents despite the release of a positive announcement. This morning Creso Pharma announced that it had imported the first medicinal cannabis products into Australia under new government legislation.

The MMJ Phytotech Ltd (ASX: MMJ) share price has fallen 17% to 49 cents despite a huge rally overnight in the shares of its Canada-listed 60%-owned Harvest One Cannabis.

The MGC Pharmaceuticals Ltd (ASX: MXC) share price has dropped 3.5% to 6 cents even though it announced a strategic agreement with the Royal Melbourne Institute of Technology. The two parties will collaborate on a full suite of medicinal cannabis research initiatives, initially centred on genetics and cultivation.

The Stemcell United Ltd (ASX: SCU) share price has fallen 20% to 16 cents despite there being no news out of the company. Big share price movements on no news are nothing new for Stemcell United. Yesterday its shares jumped 41% without reason, prompting an ASX price query.

The Zelda Therapeutics Ltd (ASX: ZLD) share price has dropped 9% to 9.1 cents. Today’s decline has almost wiped out all of the strong gains it made in April after it announced plans to expand its clinical trials in Chile.

Overall, I believe today’s declines show just how volatile the industry can be for investors at this point in time. Whilst one or two of these companies may well go on to greater things, I believe investors are better off watching from the sidelines for the time being.

Rather than risk money in pot stocks, I would suggest investors consider these high quality growth shares. I believe that each has explosive growth potential and could provide strong long-term gains.

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

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.