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3 pot stocks to watch in 2018

Although they were quite volatile at times, in the end Australian pot stocks provided investors with some of the best returns on the market last year.

While there’s no guarantee that this will be the case again in 2018, below are three pot stocks which I feel are positioned well to push higher this year:

Auscann Group Holdings Ltd (ASX: AC8)

Although regulations have been loosening in Australia, there’s still a lot of work to do before medicinal cannabis is readily available for sufferers of chronic pain and other ailments. But AusCann is pushing hard for change and if it comes will be well-positioned to profit. Approximately 20% of Australians are believed to suffer from chronic pain, making it an extremely lucrative market for the medicinal cannabis producers.

Botanix Pharmaceuticals Ltd (ASX: BOT)

Botanix is currently conducting a trial of its BTX 1503 candidate which uses synthetic cannabidiol to treat moderate to severe acne. I believe a new treatment for acne is long overdue and that BTX 1503 could win a significant share of the US$4.5 billion acne prescription market if its trials are a success. After all, the current go-to treatment, Accutane, is both expensive and has horrific side effects.

Creso Pharma Ltd (ASX: CPH)

I think that Creso Pharma will be one to watch in 2018 due to the expansion of its business towards the end of last year. This included a move into edibles, China, and the recreational market in Canada. All in all, I think this cashed-up cannabis company could be on the verge of generating material revenues.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

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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