MENU

Pot stocks rocket on regulation change

In morning trade Australian pot stocks are once again smoking the market and pushing significantly higher.

Here is the state of play at the time of writing:

  • The Auscann Group Holdings Ltd (ASX: AC8) share price has jumped 10% to 90 cents.
  • The Cann Group Ltd (ASX: CAN) share price is 11% higher at $3.19.
  • The Cannpal Animal Therapeutics Ltd (ASX: CP1) share price is up 4% to 23.5 cents.
  • The Creso Pharma Ltd (ASX: CPH) share price has surged 8% to $1.08.
  • The Hydroponics Company Ltd (ASX: THC) share price has jumped 12.5% to 80.5 cents.
  • The MMJ Phytotech Ltd (ASX: MMJ) share price is up 7.5% to 51 cents.
  • The Zelda Therapeutics Ltd (ASX: ZLD) share price is 10% higher at 11 cents.

What happened?

This morning the Australian medicinal cannabis industry was given a major boost after the Federal Government revealed that it will allow the export of cannabis-based medicines.

According to Health Minister Greg Hunt, the decision is expected to help both domestic supply and Australian producers by strengthening the opportunities for domestic manufacturers.

Mr Hunt stated that: “We are making these changes because the expanding domestic medicinal cannabis products industry is facing increasing competition from imports. And allowing the export of medicinal cannabis products will help the developing domestic market to grow further.”

Should you invest?

Whilst I don’t believe this decision will come as a huge surprise to those that follow the industry, it is still a big positive and a major step forward.

I continue to believe that AusCann and Creso Pharma are the two pot stocks most likely to succeed in the long-term. This could make them worth a closer look today.

Though it is worth remembering that even with this positive news, it is still a volatile part of the market and largely unsuitable for investors with a low tolerance for risk.

If you think pot stocks are exciting then I think you will love these hot tech shares.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!