Aurora Cannabis Stock Hasn't Reached Its Peak Yet – Investorplace.com

The marijuana stocks have been smoking hot in 2018. Some of the wildest trades of the year happened in Tilray (NASDA:TLRY) for example. This is a sector that exploded on to the market and has immediately amassed a die-hard fan base. But trading pot stocks has not been for the faint of heart. These are momentum stocks and they move even faster than Amazon (Nasdaq:AMZN) and Netflix (NASDAQ:NFLX). Aurora Cannabis (NYSE:ACB) is no different. ACB stock as seen several moves over 50% in either direction. So it’s never going to give investors an easy point of entries or exits.

For decades, pot was taboo, so it has never was a topic of conversation on Wall Street. But now that legalization of marijuana is becoming more ubiquitous, the concept of commercializing its uses is a valid thesis. There are several companies that have attracted mainstream investments like Constellation Brands (NYSE:STZ) did with Canopy Growth (NYSE:CGC). They invested $4 billion dollars so they can tap into the market.

Canada has been at the forefront of this movement. Some states in the U.S. have also been there but the big one would be at the federal level. Until that happens the risk in those stocks is still high. Therefore, I would only consider investing in ACB as a speculative thesis within a conservative portfolio.

From an evaluation perspective, the company sells at an 82 price-earnings ratio, which is almost Amazon territory. But unlike Amazon, its future is not as set in stone yet. But therein lies the opportunity.

This Canadian-based company is a legitimate competitor in the field. They are well diversified within it and already are in 20 countries. So it’s a matter of time as the legalization expands before they grow into their potential.

There’s not much expert opinion out on these companies, and in any case,

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