These Two Australian Cannabis Stocks Could be Future 700% Winners

Investing in Canadian cannabis stocks just 24 months ago has become hugely profitable.

For example, Canopy Growth Corp (TWMJF), the world’s largest cannabis company headquartered in Canada, is up 700% in two years.

Aphria (APHQF), one of the largest Canadian cannabis companies, is up 600% in the last two years.

One of the biggest reasons these companies soared? Canopy and Aphria were two of the first companies to land permits from the Canadian government to grow and sell cannabis.

One of the biggest reasons these companies soared? Canopy and Aphria were two of the first companies to land permits from the Canadian government to grow and sell cannabis.

I am expecting both stocks to continue advancing as the cannabis industry expands. But if you missed out on buying shares back in 2015, don’t worry, I have a solution.

I see this exact same cycle repeating itself in another part of the world.

The Australia Cannabis Industry is Just like Canada’s Two Years Ago

The Australian cannabis industry reminds me of Canada two years ago right after it legalized medical cannabis.

Like Canada in 2014, Australia approved medical cannabis in 2016.

Also just like Canada, the Australian government is handing out a limited number of permits allowing companies to grow and sell cannabis.

I am expecting the companies landing these permits to skyrocket – just like Canopy and Aphria have.

In fact, it’s already happening.

Australian cannabis stocks have been surging as more investors recognize the opportunity.

Let me share a few examples.

Auscann (ACNNF) is a young Australian cannabis company.

Just like Canopy back in the day, AusCann is positioning itself to be the market leader in Australia. It was one of the first companies to score a license to grow and sell medical cannabis in Australia.

That was a huge win for the company and its creating a big opportunity for investors following the story.

Another thing I like about Auscann is that Canopy Growth Corp (TWMJF) is its largest shareholder with a 10% ownership stake.

That’s good for a few reasons.

  • Canopy will share its cultivation knowledge and other resources with Auscann.
  • Canopy will supply Auscann with cannabis while it develops its own cultivation facilities.
  • And finally, I expect Canopy to eventually purchase Auscann and roll it into its broader operations.

Auscann began trading on the Australian Stock Exchange in February. Shares are up 200% since then despite plenty of volatility. Take a look below.

I recommended shares of Auscann to Cannabis Stock Trades Members on June 6. Since then, shares have risen 130%.

Cannpal Animal Health is an Australian-based company developing cannabinoid derived animal therapeutics.

Cannpal is a hot company in a hot space – cannabis for pets. This looks like another early-industry leader in a high-growth industry.

Shares just began trading on the Australian Stock Exchange on October 25.

The company does not have any commercial products or revenue yet.

What it does have is good funding, a promising pipeline, and an ambitious plan.

Cannpal’s leading drug candidate is CPAT-01, a cannabis-derived drug designed to treat pain in companion animals.

CPAT just scored a big victory from the most powerful regulatory agency in the world: The US Food and Drug Administration (FDA) – the federal agency that makes or breaks drug candidates with commercial approvals or rejections.

Cannpal was granted an official sponsor fee waiver by the US Food and Drug Administration (FDA) for CPAT.

If Cannpal can score a license to sell cannabis treats for pets it could unlock a potentially huge and lucrative market. The US population at 360 million is 15 times the size of Australia’s 24 million.

It’s an ambitious plan for such a small company – run the FDA gauntlet and be an early industry leader in the worlds largest and most competitive consumer market.

If it works early shareholders will be rewarded.

Cannpal is off to a strong start since going:

I recommended shares of Cannpal to Cannabis Stock Trades members on October 25. Since then, shares have risen 40%. Get my alerts with a 2-Week Free Trial Membership.

Despite these Impressive Gains the Australian Cannabis Industry is Still Young

Despite the impressive gains in Auscann and Cannpal, I see plenty of upside ahead.

The Australian medical cannabis market will continue to grow.

And more importantly, I also expect Australia to follow Canada’s lead and eventually legalize recreational cannabis.

If that happens, Auscann and Cannpal could deliver the kind of huge returns Canopy and Aphria have in the last two years.

Michael Vodicka owns shares of Canopy Growth Corp and Auscann Holdings at time of writing.