The Queensland Bauxite Ltd (ASX: QBL) share price has rocketed up 21% on news that Wesfarmers Ltd’s (ASX: WES) Coles is now selling hemp products provided by Medical Cannabis Limited (MCL) and its subsidiary VitaHemp Pty Ltd. Readers may remember that Queensland Bauxite took the audacious step of moving into the cannabis industry a while back.
Red Tractor has now supplied hundreds of Coles stores with various products and oil blends that have hemp ingredients included.
The Queensland Bauxite market release conveyed a lot of excitement with the news, it said “Exposing hemp foods to a mass consumer market who may know little about hemp, and now see hemp derived products on a Coles shelf, inspires confidence and provides a win for a bourgeoning hemp foods industry that VitaHemp is now leading.”
Andrew Kavasilas, technical director of MCL, said “The stocking of hemp products in a major supermarket chain such as Coles, is a fulfilment of our vision that we have worked for over the past two decades in pushing towards the legalisation of hemp foods in Australia, so that the average Australian consumer is now exposed to and can easily benefit from the great health benefits that this superfood provides.”
Clearly, management are very excited by this news and it is a good triumph to be sold in Coles stores. However, the key will be to see if the products actually sell off the shelves and if that will turn into more sales for the company. If this news turns into long-term sales and profit then it could a positive announcement.
However, the cannabis industry isn’t for me, I’d much rather put my money into quality growth shares like these ones.
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 Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. 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 Scott Phillips.