Check Up: Creso Pharma gets really, really high; leads ASX health sector
Link copied to
Here’s our fortnightly wrap of all the news driving ASX health stocks.
It’s been a great month for the ASX healthcare sector with 90 stocks gaining ground and just 32 losing it. Another five companies treaded water.
The biggest gainer – by far – has been cannabis company Creso Pharma (ASX:CPH), whose shares were up nearly 16-fold for the month when this list was compiled yesterday afternoon.
After trading for 3c for most of October and November, CPH shares have been on an absolute tear in the last two weeks as talk of the downscheduling of cannibidoil grew louder, reaching as high as 46c around midday Wednesday.
They eased later in the afternoon, closing at 30c – making the stock “just” a ten-bagger in the past fortnight.
— SC Azz (@sc_junkiie) December 8, 2020
$CPH, u just buy and close your eyes 😬😂
— Harvest (@_MaggiesFarm) December 7, 2020
Speculation about possible marijuana decriminalisation in the United States and momentum for Creso’s Canadian subsidiary Mernova Medicinal seem to be driving CPH shares.
(Fair warning, though: it’s very unlikely the United States will move on marijuana in the current session of Congress, given that Republicans still control the Senate. The best prospects for federal cannabis reform in the near term is if Democrats win two runoff Senate races January 5 in Georgia).
The second-biggest gainer for the period from November 9 to December 9 was Rhythm Biosciences (ASX:RHY), whose shares were up 238 per cent to 84.5c as the company works to bring its rapid blood test for bowel cancer to market.
Neurotech International (ASX:NTI) was the third-biggest gainer, up 165 per cent to 6.1c as the neurotechnology company made progress on researching its unique strains of hemp.
On the flip side, BPH Energy (ASX:BPH) shares were down 25 per cent to 3.3c – although still up 280 per cent for the year.
At Stockhead, we tell it like it is. Although Creso Pharma and Neurotech International are Stockhead advertisers, they didn’t sponsor this story.