ACB Stock Price: Aurora Cannabis Inc. sets higher lows, shrugging off financial fears
|- Aurora Cannabis (ACB) has been recovering on America's Thanksgiving holiday.
- The technical picture has improved for the marijuana stock.
- Fears about its financial situation may curb further gains.
Aurora Cannabis Incorporated, which is headquartered in Edmonton and trades at the Toronto Stock Exchange (TSE) has risen on Thursday at and closed at $3.48. American traders were enjoying their Thanksgiving holiday.
Low trading volume may have limited movement in the highly volatile stock and Black Friday may keep volatility at bay as well. Nevertheless, cannabis stocks remain more active than those in other sectors.
Aurora Stock Price Today
With its recent rise, ACB has bottomed out at $3.21, above the previous trough of exactly $3. Technically, the higher low is a bullish sign that may lead to an uptrend. On the other hand, Aurora still trades below the highs close to 4% seen in early November.
The test comes on Black Friday, the last day of the month, which is prone to portfolio adjustments. As long as ACB holds up above $3.21, it maintains a high chance of extending the correction.
The firm's financials remain in focus as its cash burn continues growing. Aurora spent up to C$94.9 million to fund its operations in the third quarter, up 37% from the same period in 2018. The company had around C$152.5 million in cash or equivalents, causing it to cancel the construction of two facilities, including Aurora Sun. These savings may impede further growth adding to the company's woes.
Investing in Marijuana Stocks
On the other hand, Cantor Fitzgerald has reaffirmed its bullish stance on the company, especially when it relates to beating its peers in the pot sector, such as Canopy Growth Coro and Cronos Group. After falling 70% in six months, the analyst expects higher growth for ACB over the competition.
Weed stocks have been extremely volatile of late, owing in part to news related to legalizing marijuana on the federal level in the US. Efforts by the Democratic-controlled House of Representatives have met resistance at the Republican-held Senate.
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