It has not been a great day to be a shareholder of Australia's leading pot stocks. After several weeks of highs, it seems as though many investors have exited the space in a hurry.
Here is the state of play in the industry today:
The Auscann Group Holdings Ltd (ASX: AC8) share price has dropped 5.5% to 59 cents. Today's decline means the pot stock has lost around 34% of its value in the last 30 days.
The Creso Pharma Ltd (ASX: CPH) share price is down 6.5% to 58.5 cents despite the release of a positive announcement. This morning Creso Pharma announced that it had imported the first medicinal cannabis products into Australia under new government legislation.
The MMJ Phytotech Ltd (ASX: MMJ) share price has fallen 17% to 49 cents despite a huge rally overnight in the shares of its Canada-listed 60%-owned Harvest One Cannabis.
The MGC Pharmaceuticals Ltd (ASX: MXC) share price has dropped 3.5% to 6 cents even though it announced a strategic agreement with the Royal Melbourne Institute of Technology. The two parties will collaborate on a full suite of medicinal cannabis research initiatives, initially centred on genetics and cultivation.
The Stemcell United Ltd (ASX: SCU) share price has fallen 20% to 16 cents despite there being no news out of the company. Big share price movements on no news are nothing new for Stemcell United. Yesterday its shares jumped 41% without reason, prompting an ASX price query.
The Zelda Therapeutics Ltd (ASX: ZLD) share price has dropped 9% to 9.1 cents. Today's decline has almost wiped out all of the strong gains it made in April after it announced plans to expand its clinical trials in Chile.
Overall, I believe today's declines show just how volatile the industry can be for investors at this point in time. Whilst one or two of these companies may well go on to greater things, I believe investors are better off watching from the sidelines for the time being.
