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Is This Marijuana Stock Still Leading The Race?

When there is a drop in the market within a sector, it becomes advantageous for investors to look for bargains. The cannabis industry has been in the middle of such a sustained downward spiral for many months and there are some opportunities to be had when looking at marijuana stocks.

One particular marijuana stock that is being touted by experts as a huge bargain is Aurora Cannabis Inc (ACB Stock Report). Which is one of the largest cannabis producers in the whole industry. Yet due to oversupply issues the slow rollout of retail stores in the province of Ontario. Which has suffered like other companies as well.

Key Developments

The company got a major boost this past week after announcing that regulators are willing to grant more retail licenses in Ontario. This would significantly boost the number of cannabis retailers in the province. It had been the biggest problem for Aurora this year and it is no surprise that the market feels much more optimistic about its prospects now. On the other hand, the legalization of cannabis derivative products in Canada, later on, this year could be another major boost for this notorious marijuana stock, considering the fact that it is one of the two biggest producers in the industry.

Aswell Aurora has made impressive moves into the international market. They have established a presence in both South America as well as in Europe. Analysts believe that the industry could be worth $75 billion in sales. With that boost that should be a major argument in favor of Aurora’s long term prospects. Yet, it should be kept in mind that in order to raise capital, the company might need to dilute its shares.

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Thinking Towards The Future

That could affect the stock price in a negative way even if the company continues to grow. The speed at which the new retail outlets come up is also a factor. Lastly, the challenges to the legalization of recreational marijuana in the United States should also be noted. However, analysts maintain that Aurora could prove to be the best bargain in the market at this point.

By J. Phillip

Coming from Miami FL, Jonathan Phillip or (J. Phillip) is a social media marketer and currently head of PR and social media management for MarijuanaStocks.com. When working with clients in various sectors Jonathan will use his expertise and knowledge to make sure the correct audience is viewing and engaging with your content product or service. Jonathan is a self-taught marketer and entrepreneur learning from the best and sharpening his skills with each project.

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