Why the Creso Pharma Ltd share price rocketed 7.5% today

The Creso Pharma Ltd (ASX:CPH) share price has been a big mover in morning trade. Here's why the pot stock rocketed higher…

| 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

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.

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.

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 »