Insights

Beaten up ASX cannabis shares showing signs of life

Beaten up ASX cannabis shares are moving higher this week.
The post Beaten up ASX cannabis shares showing signs of life appeared first on The Motley Fool Australia. –

ASX cannabis shares were once one of the hottest sectors with no shortage of new pot stocks hitting the market.

The Cann Group Ltd (ASX: CAN) share price, for example, skyrocketed almost 300% between September 2017 and January 2018 amid the federal government allowing medicinal cannabis exports and booming M&A deals taking place across the sector.

Unfortunately, money came out of this sector as fast as it went in.

Fast forward to today, most ASX cannabis shares sit around multi-year, if not all-time lows. It isn’t unusual to find players down 80-90% from their all-time highs.

Despite being beaten up and battered, these cannabis shares have managed to find somewhat of a floor in recent months.

While trading sideways for the past 1-2 months, this week has proven to be a small win for these beaten-up stocks.

The Cann Group share price is up 20.5% this week to a 3-month high of 34 cents.

Althea Group Holdings Ltd (ASX: AGH) is up 9.5% to a 2-month high of 29 cents.

Similarly, Ecofibre Ltd (ASX: EOF) is up 4.7% to a 4-month high of 89 cents.

Why ASX cannabis shares are bouncing higher?

ASX cannabis shares are likely taking off after a 7.1% jump in the Global X Cannabis Exchange Traded Fund (ETF) on Tuesday night.

The cannabis ETF invests in companies across the industry, involved in the legal production, growth and distribution of cannabis and industrial hemp.

Canadian and US-listed companies make up more than 90% of its allocation but the ETF does have a small allocation in Creso Pharma Ltd (ASX: CPH).

Last month, the Motley Fool US reported that a panel from the US House of Representatives is preparing for a vote to “federally legalise marijuana” outright.

This move will look to “decriminalise marijuana federally” in the US by removing it from the Controlled Substances Act.

The post Beaten up ASX cannabis shares showing signs of life appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Creso Pharma (ASX:CPH) share price struggles despite study update

Creso Pharma (ASX:CPH) share price jumps on new deal

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!