MENU

Aussie pot stocks go nuts: Here’s what you need to know

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.

I feel it is too soon to invest in pot stocks and would suggest investors consider these top growth stocks instead. I'm tipping them for big things 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 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.

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.