It hasn’t been a great end to the week for many of Australia’s leading pot stocks.
In afternoon trade a number of them are amongst the worst performers on the Australian share market.
Here is the state of play at the time of writing and an update on recent business activities:
The Auscann Group Holdings Ltd (ASX: AC8) share price is down almost 7% to $1.59. Earlier this week the medicinal cannabis company’s shares reached as high as $1.83, meaning they have now lost over 13% of their value in a matter of days. This week AusCann’s strategic partner Canopy Growth Corp entered into a research collaboration with the Victorian State Government.
The Cann Group Ltd (ASX: CAN) share price has managed to push slightly higher today and is up almost 0.5% to $3.41. Cann is the largest listed pot stock in Australia and appears to have impressed investors with its production capabilities.
The Creso Pharma Ltd (ASX: CPH) share price has fallen 5% to $1.04 and looks likely to end the week where it started after giving back the gains it made earlier in the week. Creso’s shares climbed strongly after revealing a commercial agreement with Precision HealthCare to market and distribute hemp-based human health nutraceuticals in the UK.
The MMJ Phytotech Ltd (ASX: MMJ) share price is off almost 4% to 52 cents. Last week the company’s 59%-owned Canada-based and TSX-V listed Harvest One business announced plans to raise C$35 million to fund the expansion of strategic indoor growing facilities and further development of its Satipharm GelPel products.
The Hydroponics Company Ltd (ASX: THC) share price is down 1% to 92 cents. On Tuesday the company provided a business update which revealed the implementation of a new structure to drive growth.
I expect the pot stock industry will remain highly volatile for some time to come as investors struggle to agree on the potential of the medicinal cannabis market and the lofty valuations that many of these shares trade at. This would make it an unsuitable area of the market to invest in for most retail investors, in my opinion.
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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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