These pot stocks have been on fire in 2018

The Bellamy’s Australia Ltd (ASX: BAL) share price might be smoking the market today with a huge 26% jump higher, but its year-to-date gain has nothing on one group of shares.

Australia’s leading cannabis companies, or pot stocks, have produced some dazzling returns for investors since the turn of the year.

This is due largely to the Federal Government’s decision to loosen regulations and allow for the export of medicinal cannabis.

Investors appear to be betting big on the Government’s goal of making Australia the world’s number one exporter of medicinal cannabis.

Which isn’t a surprise considering the domestic market is predicted to be worth $1 billion and the global market $34 billion annually by 2021.

Here are a few of the best performers in the industry this year:

  • The Auscann Group Holdings Ltd (ASX: AC8) share price is a staggering 120% higher year-to-date.
  • The Cann Group Ltd (ASX: CAN) share price has climbed 28% in 2018.
  • The Creso Pharma Ltd (ASX: CPH) share price is up 17% this year.
  • The Hydroponics Company Ltd (ASX: THC) share price is 40% higher year-to-date.
  • The MMJ Phytotech Ltd (ASX: MMJ) share price has risen 16% since the turn of the year.

Why is AusCann leading the way?

Investors appear to believe that AusCann is one of the best placed cannabis companies to profit from the change in regulations.

This is likely to be down to its partnership with Canadian pot stock Canopy Growth Corp. The CA$7 billion cannabis giant is a major shareholder and shares its expertise with AusCann on a royalty-free basis.

However, AusCann isn’t actually the largest pot stock on the local market. Cann Group is the largest with a market capitalisation of approximately $340 million.

Similar to AusCann, investors appear to be attracted to Cann Group due to its ties with CA$5.2 billion cannabis company Aurora Cannabis. Cann Group also has several production facilities in Australia with significant production capabilities.

Which should you invest in?

It is impossible to know which pot stock will ultimately reign supreme in Australia. Although, as we have seen in Canada, there is room for at least three giants. If this proves to be the case here in Australia, I would expect AusCann, Cann Group, and Creso Pharma to be the ones to excel.

If pot stocks are too risky for you then these explosive growth shares could be perfect investment options.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

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…


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!