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.
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.
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As of 2.11.2020
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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