Whilst infant formula and lithium miner shares may be going gangbusters at the moment, one group of shares is even putting them to shame. These are the medical marijuana shares, or pot stocks as they are colloquially known.
In recent weeks investors have been fighting to get hold of them due to the announcement of company specific developments, loosening regulations in Australia, and positive developments in Canada.
Here's what impact this has had on their respective share prices:
The Auscann Group Holdings Ltd (ASX: AC8) share price has almost doubled in value in just one month. A fair portion of this gain came yesterday when the company announced that it has secured a cultivation licence in Chile. Furthermore, last month Constellation Brands agreed to pay almost C$250 million for a 10% stake in its strategic partner Canopy Growth Corp.
The Cann Group Ltd (ASX: CAN) share price is up 71% since this time last month despite a heavy sell-off over the last few days. Last month Cann was granted a licence which allows it to apply for a permit to import cannabis genetics and medicinal cannabis products from legal international sources.
The Creso Pharma Ltd (ASX: CPH) share price has rocketed 135% in a month following a series of positive announcements. This week, for example, the company announced its entry into the lucrative China market. Creso's shares are currently in a trading halt pending an announcement regarding a placement of shares.
The MGC Pharmaceuticals Ltd (ASX: MXC) share price has climbed 50% during the last 30 days. Supply agreements with a South Korean cosmetics company and a European medicinal products distributor have been the catalyst for this gain.
The Hydroponics Company Ltd (ASX: THC) share price has been the star performer in the industry, rising over 350% since this time last month. During this period the diversified cannabis company announced that its Canndeo business has been granted a Medicinal Cannabis Licence by the Office of Drug Control that authorises the cultivation and growing of cannabis plants for medicinal purposes.
The Queensland Bauxite Ltd (ASX: QBL) share price has rallied 250% higher in the last 30 days. The mining company's shares have not rallied due to any developments in its core business, but rather due to its investment in Medical Cannabis Limited and Hemp Hulling Company.
Whether this strong run can continue in December is a matter of debate, but I wouldn't be too surprised to see traders take a bit of profit off the table.
