The Motley Fool

Why Aussie pot stocks are smoking the market today

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.

What happened?

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.

Missed the pot stock boom? Then don't miss out on this next super boom!

Bill Gates Says This Could Be Worth “10 Microsofts”

If You Missed Investing In Microsoft in 1996 – Read This

I can’t believe so many investors haven’t heard about something Microsoft founder Bill Gates told a group of college students in 2004.

This could be your chance to get in on the ground floor!

Click here to discover more!

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.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now