Although the market as a whole has climbed higher today, one group of shares has stood out with impressively strong gains.
These are the medicinal cannabis companies, which are better known as pot stocks.
While there doesn't appear to have been a single catalyst for today's gains, investor appetite for pot stocks is certainly on the rise.
Here's the current state of play in the industry today:
The Auscann Group Holdings Ltd (ASX: AC8) share price is up 10.5% to 63.5 cents. The last bit of news out of AusCann was the receipt of a medicinal cannabis manufacture licence last week. Since then its shares have rallied as much as 37%.
The Cann Group Ltd (ASX: CAN) share price climbed as much as 22% and hit an all-time high of $1.27 today despite there being no news out of the company. Late last month Cann released its quarterly update and confirmed that this month it expects to harvest its first plant material from cultivation at its Southern facility.
The Creso Pharma Ltd (ASX: CPH) share price has climbed 5% to 53 cents. Last week Creso provided the market with an update which revealed that it is searching for a CEO of its Canadian operations following the acquisition of Mernova Medicinal. The new CEO will be responsible for pursuing commercial opportunities in the Canadian medicinal and recreational cannabis space.
The Hydroponics Company Ltd (ASX: THC) share price has rocketed 14% to 32 cents today. The last piece of news out of the diversified cannabis company was its quarterly business review at the start of the month. That update advised that following the receipt of its cannabis research licence, the company is now preparing a manufacturing licence application.
The Zelda Therapeutics Ltd (ASX: ZLD) share price is up 3.5% to 9.3 cents. At the end of last month Zelda announced that following the early success of its breast cancer research programme, the company plans to extend its research to investigate the effect of cannabinoids on cancer stem cell-like cells.
Finally, whilst I believe the industry potentially has a very bright future ahead of it, I'm holding off an investment until revenues start to be generated.
At that point I believe it will be easier to judge which of the many players in the industry will emerge as market leaders and have the greatest chance of success.
