Marijuana Stocks Forecast: Aurora Cannabis Stock Forecast
It has been an up-and-down year for Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB). Initially, 2018 was looking like it would be a down year for the company as its stock value sunk lower and lower. While the entire legal marijuana stock market experienced a pullback, ACBFF stock was hit harder than its main rival, Canopy Growth Corp (NYSE:CGC).
But things have since turned around, and the Aurora Cannabis stock forecast looks as bright as it has been all year.
The marijuana stocks forecast in general has taken an upswing, with August seeing massive gains across the board. Furthermore, with Canadian marijuana legalization just around the corner, the entire industry is slavering over what could be a very strong finish to 2018.
Aurora Cannabis in particular is in a great position. First off, the company has made numerous supply agreements with Canadian provincial governments, meaning it is well situated to take full advantage of the Canadian recreational marijuana market starting on October 17.
Speaking of October, Aurora Cannabis is looking to be listed on a major U.S. stock exchange at the end of this month. (Source: “Aurora Cannabis Plans NYSE Listing For End Of October,” Forbes, October 9, 2018.)
Following in the footsteps of its rival, Canopy Growth, Aurora Cannabis landing on the New York Stock Exchange (NYSE) would be a huge boon to the company and help propel its stock toward further gains.
In fact, this may be the best time to emerge on a major U.S. stock exchange. U.S. investors are begging to pour money into the legal cannabis industry, but many are wary of investing in over-the-counter (OTC) markets or in unfamiliar Canadian markets.
Tilray Inc’s (NASDAQ:TLRY) incredible run has proven that there is a hunger in the U.S. market for marijuana stocks on the Nasdaq and NYSE. With Canadian legalization fast approaching, this may be the perfect time to change listings.
Chart courtesy of StockCharts.com
There are two more big developments that could help push Aurora Cannabis stock even higher.
The first is the rumor that The Coca-Cola Co (NYSE:KO) and Aurora are looking to close a deal.
“The Company does confirm that it engages in exploratory discussions with industry participants from time to time,” said Aurora in a press release. (Source: “Pot stock Aurora says there’s no agreement with Coca-Cola, but the shares are rising anyway,” CNBC, September 18, 2018.)
“At this time the Company confirms there is no agreement, understanding or arrangement with respect to any partnership with a beverage company.”
While this is a pretty flimsy statement with no concrete details, we know that Coca-Cola and Aurora have at the very least engaged in talks.
If the two companies can come to an agreement, expect to see a huge payoff for Aurora Cannabis, depending on the size of the investment.
Earlier this year, the Toronto Stock Exchange (TSE) introduced restrictions wherein marijuana companies either had to shed their American assets or face delisting. Australis, therefore, listed on the Canadian Securities Exchange (CSE), allowing it to once more engage with U.S. assets.
And that brings us to where the company is today, and then back to the Aurora Cannabis stock forecast.
“Recent changes in U.S. federal positioning with respect to cannabis have positively impacted the perception of risk to invest in U.S. cannabis assets,” said Australis. (Source: “Aurora Cannabis Provides Update on Australis Capital Public Listing,” Australis Capital, September 14, 2018.)
“This has further incentivized capital market participants to seek opportunities to fund U.S. based operations.”
While I’m not sure just how connected Australis and Aurora will be moving forward, if Australis and its U.S. investments can establish a working relationship between American marijuana companies and Aurora Cannabis, then expect to see that pay off as the U.S. continues to relax its laws on marijuana.
This could yield a huge payoff down the line if it creates a foundational network that Aurora can tap into when U.S. marijuana legalization inevitably hits.
When it comes to the best U.S. marijuana stocks, we don’t have many options, due to intense restrictions by the federal government.
Aurora Cannabis may present the next best thing because it has Australis, an investment arm heavily involved in U.S. marijuana. On top of that, Aurora is likely to be listed on the NYSE by the end of this month.
All this combines to make the Aurora Cannabis stock forecast among the best marijuana stock forecasts for the remainder of 2018.