Why these 3 ASX cannabis shares are flying high in 2020

These 3 ASX cannabis shares are rebounding from a weak 2019 by doubling in value. Is 2020 shaping up as a good year for shareholders?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX cannabis shares endured a tough 2019, as investors cooled on the latest investing trend.

However, some of the biggest listed groups have bounced back in January and are up as much as 100% this year.

Here's why 3 of the biggest names in the booming cannabis industry have rocketed higher in 2020.

a woman

Cann Global Ltd (ASX: CGB)

Shares in this $51.61 million ASX cannabis group doubled since the start of the year, but have since pulled back to be trading for $0.016 per share, up 14.18% year to date.

The current share price is still a far cry from the stock's 52-week high of $0.051 per share set in early September.

The group re-listed in late August 2019 after previously being a mining company called Queensland Bauxite. Shares quickly sank lower and closed out the year at a 52-week low as concerns about profitability grew,

However, steady operational updates and general optimism in the sector have seen Cann Global shares climb higher in 2020.

Cann Group Ltd (ASX: CAN)

Not to be confused with its smaller rival, the Cann Group share price has been soaring higher in 2020.

The group is now the largest of the ASX cannabis shares with a market capitalisation of $215.77 million. While still very much a small-cap, the group's shares are now up 125.80% in the space of just a few weeks.

The Cann Group share price rocketed 25% higher in early January after an announcement with IDT Australia Ltd (ASX: IDT).

The 2 groups reported GMP extraction activities are underway for the first batches of medicinal cannabis resin.

Elixinol Global Ltd (ASX: EXL)

Elixinol Global is another which has seen its share price surge higher in 2020. Elixinol shares are up 86.20% after falling 5.65% lower in today's trade.

Elixinol boasts a market capitalisation of $149.62 million, which makes it one of the largest ASX cannabis groups on the market.

The Elixinol share price finished 2019 in disappointing fashion as its shares crashed to a 52-week low of $0.51 per share in mid-December.

However, renewed optimism and a bullish market have boosted the ASX cannabis company's shares higher to close today's trade at $1.08 per share.

Motley Fool contributor Kenneth Hall 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 Scott Phillips.

More on Share Gainers

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.
Share Gainers

3 ASX 200 stocks storming higher in this week's sinking market

Investors sent these three ASX 200 stocks surging in this week’s tumbling market. But why?

Read more »

Worker on a laptop in front of an energy storage system in a factory.
Share Gainers

This ASX stock just landed a $110 million battery project. Shares near record highs.

Genusplus shares lift after a $110 million battery project win in South Australia...

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Newmont, Nuix, PLS, and Vulcan Energy shares are rising today

These shares are ending the week on a high. But why?

Read more »

Three brightly coloured objects against a backdrop of blue, indication three winning ASX share prices
Share Gainers

Here are the top 10 ASX 200 shares today

It was a lacklustre session on the ASX this Thursday.

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Share Gainers

Why Deep Yellow, Develop Global, Resolute Mining, and Santos shares are pushing higher today

These shares are catching the eye on Thursday. But why?

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a very unhappy hump day on the markets.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Ampol, Meteoric Resources, Praemium, and Treasury Wine shares are storming higher

These shares are having a better day than most on hump day. But why?

Read more »

A close up of a casino card dealer's hands shuffling a deck of cards at a professional gambling table with the eager faces of casino patrons in the background.
Share Gainers

Why is everyone buying Tabcorp shares this week?

Here's what is driving the latest price momentum for Tabcorp shares, and what to expect next.

Read more »