Cannabis stocks have generally had a rough run in recent months, with the big-name cannabis stocks declining alongside the broader industry. Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB), for instance, is down about 26% year-to-date. Canopy Growth (NYSE
However, Aurora appears to have bottomed out and a recovery is unfolding. Aurora has recently recorded several positive movements that have gone one to reverse its downhill slide that kicked off in March this year. At around $3.70 apiece, Aurora is still trading far below its 2019 peak of $10. Nevertheless, the positive movements in the stock provide hope that the worst may be over for Aurora investors as the stock rebounds.
Notably, the rebound in Aurora comes on increasing volume of traded shares, signaling strong investor interest in the stock.
Aurora is a Canada-based cannabis company with a global footprint. It is one of the largest and most famous cannabis companies in the world. Aurora operates 15 global production facilities spread across 25 countries and five continents. Aurora bills itself as a vertically integrated and horizontally diversified cannabis company with a presence in every key segment of the cannabis value chain.
Positive developments for ACB
- Aurora ready to take full advantage of Canada’s expanded cannabis market. Canada has gone a step further to expand its cannabis market. This month, a law legalizing more recreational cannabis products in Canada took effect. Sale of the newly legalized recreational cannabis products such as vape pens is set to begin in December. Aurora has prepared to hit the ground running when the sale of newly legalized cannabis products opens in Canada. The company has developed a diverse range of products from vape devices to edibles that it intends to bring to the expanded recreational cannabis market in Canada.
“Aurora’s Product Development and Insights teams have done tremendous work to formulate new products in a variety of formats that we think will exceed consumer expectations and drive category growth,” Aurora CEO Terry Booth said about the company’s preparation to serve the expanded Canadian cannabis market.
- Justin Trudeau’s re-election lifts a major overhang for cannabis companies and investors. Last week, Canadian’s re-elected Justin Trudeau as prime minister. Trudeau’s re-election is no doubt a big victory for the cannabis industry in Canada. Trudeau administration has been very supportive to the Canadian cannabis industry. When Trudeau came to power in 2015, his administration worked on policy changes that saw Canada become the first developed country in the world to legalize cannabis for recreational use. Worries generally gripped cannabis industry that a victory for the Conservative candidate in the Canadian election could see some regulatory gains for the cannabis industry rolled back. However, the re-election of Trudeau at least reduces risk of regulatory surprises that could hurt Canada’s cannabis businesses.
Aurora strikes deal with CTT Pharmaceutical to expand its product portfolio
Aurora has expanded its medical cannabis products portfolio through a deal with a firm called CTT Pharmaceutical Holdings, thereby diversifying business and extending its footprint in Canada’s cannabis market. The company announced early this month it will sell CTT Pharmaceutical’s product called Dissolve Strips, which is a cannabinoid-infused sublingual wafer.
Investors may want to note that the CTT Pharmaceutical deal provides Aurora more than one way to benefit from the success of Dissolve Strips and CTT Pharmaceutical’s other products. In addition to direct benefits from its sale of Dissolve Strips, Aurora also owns a stake of about 9.0% CTT Pharmaceutical. Aurora has an option to raise its stake in CTT Pharmaceutical to 42.5%. Moreover, it has access to CTT Pharmaceutical’s patented sublingual wafers drug delivery technology.
Aurora’s annual revenue jumps 350%
Aurora released its fiscal 2019 financial results last month for the 12-month period ended June 30. The company reported a 349% increase in revenue for the year. Canada’s expanded cannabis market and Aurora’s deal with CTT Pharmaceutical for Dissolve Strips sale in Canada should allow Aurora to generate even more revenue.
Aurora has reversed course after months of decline and the stock looks poised to move even higher as more investors become aware of its huge potential. Considering the stock is down over 60% off its highs, ACB is a discount entry opportunity.
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Disclosure: We have no position in ACB, CGC or CRON and have not been compensated for this article.
Forget APHA and ACB, Buy GTBIF and TCNNF
There are a lot of misconceptions going on when it comes to US legalization. Many investors are buying Aphria (APHA) and Aurora Cannabis (ACB) hoping to bank on what’s happening in the US. However, they are Canadian Licensed Producers and have no business in the US. Investors are buying them because they trade on the major exchanges, but that is the wrong move. The correct move is to buy the US multi-state operators like Green Thumb Industries (GTBIF) and Trulieve Cannabis (TCNNF).
On Election Day voters in New Jersey, Arizona, Montana and South Dakota voted to legalize recreational marijuana. South Dakota and Mississippi voters also approved measures to legalize medical marijuana.
There’s also the prospect of a more pot-friendly White House with President-elect Joe Biden. Vice Presidential Candidate Kamala Harris said at the debate a Biden administration would decriminalize marijuana at a federal level and expunge criminal records of people with marijuana-related offenses.
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves.
Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection.
The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 96…
What Do Investors See In Medical Marijuana Stock (OTCMKTS:MJNA)?
Medical Marijuana Stock (OTCMKTS:MJNA) has emerged as one of many investor’s favorite pot stocks in the legal cannabis universe in 2020. The stock is already up about 10% in 2020, demonstrating how investors have warmed up to the stock early on in the New Year.
Following a disastrous 2019, cannabis investors lost money but have also learned that their best bets are stocks with strong fundamentals. They are looking for companies that have positioned themselves well in the cannabis industry and have what it takes to go for the opportunities. That is why MJNA stock is catching a lot of investor attention in 2020 because of how it has positioned itself in the cannabis market.
Robust revenue growth and strong financial position have also helped put MJNA on the radar of investors hunting for quality cannabis stocks. Revenue at MJNA more than doubled from $26.5 million in 2017 to $60 million in 2018. MJNA is also not in financial distress as may be the case with other cannabis companies out there. The company finished the third quarter, the most recent reported period, with $5.5 million in cash reserves.
Moreover, MJNA has recently taken steps to expand into new international markets and invest in companies that are leaders in their segments. These prudent actions are helping lift Medical Marijuana stock as more investors learn about them.
About Medical Marijuana stock
Is Tilray Inc (NASDAQ:TLRY) A Buy Or Sell?
For Tilray Inc (NASDAQ:TLRY) and the rest of cannabis stocks, 2019 was no doubt a bad year. But 2020 is shaping up to be a promising year for the stock. To start with, Tilray stock has already gained 8.35% year-to-date. If that says anything, it shows following the broad selloff in Tilray stock last year, we’ve got to a point where sellers are giving way to buyers in the stock.
There are several catalysts that should continue driving NASDAQ:TLRY as you’re about to see. First, below is a brief profile of the company we’re discussing.
Tilray is a Canada-headquartered global cannabis company. It is engaged in activities of cannabis cultivation and processing as well as marketing and distribution of cannabis products. Tilray already has several cannabis products brands to its portfolio. It operates across five continents through subsidiaries in Canada, Australia, Germany, and Portugal.
Following the broad collapse of cannabis stocks in 2019, investors are looking for cannabis stocks that can make a positive impact on their portfolios in 2020. Tilray stands out as an attractive cannabis stock pick in 2020. Here are some of the exciting things about the company.
Tilray CEO sees a bright future for the cannabis industry
On January 25, Tilray CEO Brendan Kennedy spoke on Bloomberg. In that interview, Kennedy framed a rosy outlook for the…