At time of writing the Creso Pharma Ltd [ASX:CPH] share price is trading at 24.2 cents, up 10%.
Where is the growth coming from?
Creso Pharma is a medicinal cannabis company that brings pharmaceutical expertise and methodological rigour to the world of cannabis.
They provide products for both people and animals.
In a recent announcement the company outlined its growing revenue and fantastic start for FY2021:
- Secured a new purchase order for its leading range of animal health products anibidiol®, from existing commercial partner Virbac Switzerland (AU$247,826).
- Witnessing strong demand for its products through Latin America — the company secured regulatory approval for its animal health product line from the Ministry of Agriculture and Animal Feed in Uruguay.
- And in January 2021 the company also finalised delivery of its second purchase order (valued at AU$318,841) for its cannaQIX® products from the South African subsidiary of Lupin International.
The new purchase orders combined with already existing orders brings the total order amount for the company up to AU$1,055,072.
Discover our top three ASX-listed pot stocks in 2021. Click here to learn more.
Cresco Pharma and the future of cannabis
The cannabis industry is in hypergrowth mode internationally.
With the market expected to be worth $97.35 billion by the end of 2026.
For Cresco this gives a huge area to expand into both in Australia and overseas.
Let’s take a look at the chart:
The price fell back from the high in early December into a sideways movement.
With announcements being made regarding the great start to the year, the share price moved up 10% at the time of writing to trade at 24.2 cents.
If the move up continues, then the levels of 28 and 32 cents may provide future resistance.
Should the price happen to fall back, then the level of 21 cents may provide future support.
The global cannabis industry is expanding at an extreme pace as most countries relax their laws towards the plant.
For companies like CPH the future looks bright.
For those thinking of trading Creso Pharma you may be looking for an uptrend to develop before putting your money in, as the current sideways movement may whip you in and out of trades.
CPH is one for a watchlist.
For Money Morning
PS: Aussie cannabis boom — discover why the Aussie cannabis market is ready again for long-term growth and how you can capitalise. Click here to learn more.