Although the market is struggling to stay in positive territory today, one area of the market is certainly not letting that hold it back.
Australian pot stocks are once again smoking the market. Here’s the state of play in the industry at lunch:
- The Auscann Group Holdings Ltd (ASX: AC8) share price is up 7% to 86 cents.
- The Cann Group Ltd (ASX: CAN) share price is 3% higher at $2.94.
- The Cannpal Animal Therapeutics Ltd (ASX: CP1) share price has climbed 5% to 22 cents.
- The Creso Pharma Ltd (ASX: CPH) share price is up 8% to $1.00.
- The Hydroponics Company Ltd (ASX: THC) share price is up 4.5% to 72 cents.
- The MMJ Phytotech Ltd (ASX: MMJ) share price is 4.5% higher to 48 cents.
- The Zelda Therapeutics Ltd (ASX: ZLD) share price is up 5% to 10 cents.
Today’s gains appear to be related to a surge in pot stocks in Canada overnight following the legalisation of recreational cannabis in California and the launch of a pot stock ETF.
According to Bloomberg, there were long queues to buy cannabis in California following its legalisation. This has left many expecting similarly strong demand for recreational cannabis in Canada when it becomes legal in July.
One Australian company in particular that could profit directly from this potential boom is Creso Pharma. It spent approximately $10 million in cash and equity to acquire emerging Nova Scotia-based medicinal cannabis producer Mernova Medicinal Inc. last year.
Not only did this give it access to the medicinal cannabis market in Canada, but it allows Creso to pursue opportunities in Canada’s soon to be legalised recreational cannabis space.
This, and other ventures undertaken late last year, could potentially mean Creso is generating meaningful revenues in the not so distant future.
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.
- What to expect from the Coles (ASX:COL) first half result – January 20, 2021 8:45am
- 2 outstanding ASX dividend shares to buy – January 20, 2021 8:08am
- 2 high quality ASX growth shares to buy immediately – January 20, 2021 7:30am