The Motley Fool

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

Although the market as a whole has climbed higher today, one group of shares has stood out with impressively strong gains.

These are the medicinal cannabis companies, which are better known as pot stocks.

While there doesn’t appear to have been a single catalyst for today’s gains, investor appetite for pot stocks is certainly on the rise.

Here’s the current state of play in the industry today:

The Auscann Group Holdings Ltd (ASX: AC8) share price is up 10.5% to 63.5 cents. The last bit of news out of AusCann was the receipt of a medicinal cannabis manufacture licence last week. Since then its shares have rallied as much as 37%.

The Cann Group Ltd (ASX: CAN) share price climbed as much as 22% and hit an all-time high of $1.27 today despite there being no news out of the company. Late last month Cann released its quarterly update and confirmed that this month it expects to harvest its first plant material from cultivation at its Southern facility.

The Creso Pharma Ltd (ASX: CPH) share price has climbed 5% to 53 cents. Last week Creso provided the market with an update which revealed that it is searching for a CEO of its Canadian operations following the acquisition of Mernova Medicinal. The new CEO will be responsible for pursuing commercial opportunities in the Canadian medicinal and recreational cannabis space.

The Hydroponics Company Ltd (ASX: THC) share price has rocketed 14% to 32 cents today. The last piece of news out of the diversified cannabis company was its quarterly business review at the start of the month. That update advised that following the receipt of its cannabis research licence, the company is now preparing a manufacturing licence application.

The Zelda Therapeutics Ltd (ASX: ZLD) share price is up 3.5% to 9.3 cents. At the end of last month Zelda announced that following the early success of its breast cancer research programme, the company plans to extend its research to investigate the effect of cannabinoids on cancer stem cell-like cells.

Finally, whilst I believe the industry potentially has a very bright future ahead of it, I’m holding off an investment until revenues start to be generated.

At that point I believe it will be easier to judge which of the many players in the industry will emerge as market leaders and have the greatest chance of success.

In the meantime, I would suggest investors snap up shares in these high-flying companies. Each has the wind in their sails right now and I expect them to smash the market in FY 2018.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks mean 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%.

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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.