This Marijuana Stock Is On Fire – Marijuana Stocks
Canadian medical marijuana producer Aurora Cannabis (ACBFF) has seen its marijuana stock grow over 250% this year, with most of the gains planted over the last month. Here are a few reasons why we remain bullish on Aurora’s growing potential to bring profits to investors.
Last quarter, Aurora reported revenue of CA$8.2 million and increase 39% from the previous quarter. Keep in mind, this is only medical marijuana sales. Canada is on track to legalize the recreational use of marijuana in July and has made major strides towards that goal by with Health Canada’s proposed legalization regulations released last month.
Aurora praised the proposed regulations and the company’s CEO, Terry Booth, stated it would “create an incredibly vibrant market” and he is right. Canada’s Parliamentary Budget Officer (PBO) has forecast the market to range between CA$4.2 billion and CA$6.2 billion in 2018 and estimates the growth surpass $7 billion in the next few years. The company has significant increased revenue to look forward to with the added vibrant market.
Aurora’s business development strategy deserves a gold medal. The company’s recent bid to purchase CanniMed Therapeutics has been a hot topic of discussion lately. What hasn’t been highlighted is Aurora’s acquisition of H2 Biopharma, currently finishing construction on a 48,000-square-foot production facility or the recent purchase of Larssen, a designer of high-tech greenhouses.
The company has also invested in Hempco, which develops hemp foods and nutraceuticals. Lastly, Aurora’s partnership with Radiant Technologies in which Radiant will deliver services to Aurora to create cannabis and hemp extracts. The company is sure making strategic moves, they all serve a purpose of providing additional capacity and wider expansion. Aurora’s acquisitions and partnerships put in the position to grow like a weed.
Aurora has also expanded its international reach and if the CanniMed deal is signed, Aurora will have operations in Australia, the Cayman Islands, the European Union as well as South Africa. Aurora gains a market opportunity for medical marijuana larger than its current market in Canada and vast international opportunity. It is no wonder this marijuana stock is on fire and looks like it will continue to light up in 2018.