MENU

Why the Cann Group Ltd share price rocketed higher today

The Cann Group Ltd (ASX: CAN) share price has been amongst the biggest movers on the market again today.

In morning trade the medicinal cannabis company’s shares are up 9.5% to $1.15.

What happened?

This morning the company announced that it has executed a licensing and distribution agreement with Massachusetts-based CannaKorp, Inc. to import and sell its proprietary CannaCloud vaporizing system.

Furthermore, the company has secured the right to produce the medicinal cannabis pods associated with the device.

According to the release, CannaKorp’s technology simplifies and improves the inhalation process for medicinal cannabis patients. It incorporates a desktop vaporizer device that accepts single-use pods containing precisely prepared ground cannabis.

In many respects, it is the Nespresso machine of the medicinal cannabis world.

Should you invest on this news?

I think the CannaCloud device is a great product and I see value in it being able to provide doctors with the ability to prescribe medicinal cannabis as an efficient, measured dose.

However, I don’t believe this device is going to make or break the company. Ultimately I believe it will come down to which medicinal cannabis company can supply the highest quality product and form the strongest relationships with prescribing physicians.

One company which I think could be in the lead in this regard is Auscann Group Holdings Ltd (ASX: AC8). I believe its education program and significant links to Canopy Growth Corp puts it in the strongest position to succeed.

However, it is still early days and I would suggest investors hold off an investment for the time being.

Instead of AusCann or Cann, I think investors should consider snapping up these quality stocks.

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.

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.