Investor appetite for Australian pot stocks appears to have returned this week.
A number of medicinal cannabis shares started the week strongly yesterday and have managed to build on this today.
The current state of play in the industry is as follows:
The Auscann Group Holdings Ltd (ASX: AC8) share price is up 12% to 47.5 cents, this brings its week-to-date gain to 20%.
The Cann Group Ltd (ASX: CAN) share price is 4% higher at $1.97, bringing its week-to-date gain to almost 21%.
The Creso Pharma Ltd (ASX: CPH) share price has played catch up and climbed almost 5% to 55.5 cents after a flat day on Monday.
The Hydroponics Company Ltd (ASX: THC) share price is flat today, but 42% higher at 32 cents week-to-date.
The MMJ Phytotech Ltd (ASX: MMJ) share price is up 4% to 36 cents and 8.5% for the week.
Why are pot stocks higher?
This week’s gains may be a delayed reaction to the Medicinal Cannabis Legislation Amendment that passed in the Senate a couple of weeks ago.
The Bill was introduced to expand upon the ability of terminally ill patients to access cannabinoid medicines through the Therapeutic Goods Administration (TGA) Special Access Scheme Category A.
This means that doctors may prescribe to terminally ill patients without waiting for prior approval from the TGA.
Which could now mean that Australian pot stocks are in a position to start generating revenues in the near future once they have all their licences in place.
The two front runners, in my opinion, are AusCann and Cann Group. Both appear to be well positioned for the changes in legislation and I expect they will be the ones to watch over the coming months.
Motley Fool contributor James Mickleboro has no position in any of the 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.
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