Although the market as a whole has sunk into the red this morning, Australia’s leading pot stocks have continued their climb higher unabated.
At the time of writing, here is the state of play in the industry:
The Auscann Group Holdings Ltd (ASX: AC8) share price has climbed 6% to 53 cents, bringing its five-day return to almost 25%.
The Cann Group Ltd (ASX: CAN) share price is up 5% to $1.98. This means that Cann’s shares have climbed almost 21% since this time last week.
The Creso Pharma Ltd (ASX: CPH) share price is higher by almost 3% to 57.5 cents, meaning its shares are 7.5% higher since Monday of last week.
The MGC Pharmaceuticals Ltd (ASX: MXC) share price are up just over 1% to 8.1 cents. This brings the cosmetic cannabis company’s five-day return to over 17%.
Finally, the Zelda Therapeutics Ltd (ASX: ZLD) share price is up around 1% to 7.4 cents. The cannabis-focused biotechnology company is the laggard in the group and higher by just over 1% since this time last week.
Why has investor sentiment improved in the industry?
As I mentioned last week, global alcoholic beverage company Constellation Brands has agreed to buy a 9.9% stake in Canadian pot stock giant Canopy Growth Corp for C$245 million.
Constellation Brands took the step as it sees the cannabis market as a significant consumer category in the future. Especially in the United States and Canada where regulations around recreational use are loosening.
Traders appear to believe that this will create significant demand for produce in the future, which could be great news for Australian growers.
While I’m not an investor in the industry at this point, I’ll certainly be watching on with interest as things develop in the future. I would suggest fellow investors do the same.
In the meantime here are three growth shares which I would buy today.
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.