- Aurora's stock price has been recovering from the lows as investors convert debentures.
- Optimism about investment in the sector has been pushing all stocks higher.
- Legalization may be the next substantial driver for pot stocks.
Aurora Cannabis Incorporated (ACB), the Edmonton-based company, has leaped by over 12% on Wednesday and closed at a price of $3.50. Its recent rises defy speculation that placed a $1 target for the Toronto-traded share. The most recent surge came after Aurora announced that 94% of debentures allowed to settle this week.
While some have criticized the highly-dilutive conditions, the quick uptake, coming well before the March 2020 deadline, has encouraged investors. Later this week, the firm will publish a press release by detailing the status of the financial maneuver.
Investing in Marijuana Stocks
The marijuana company has also benefited from optimism about the broader sector. According to a survey by KCSA Strategic Communications, no fewer than 86% of respondents said they are bullish on the pot industry despite substantial falls in equity prices. Even in the face of a potential recession, only 5% said it would cause them to sell off their holdings. However, investments have become smaller, with fewer heavy-weight exposures of over $100,000.
For Aurora and the broader sector to rise, legalizing weed on the federal level in the US is needed. The House of Representatives is advancing legislation that includes expungement, but the road is long until the world's largest economy adopts the Canadian model.
Aurora Stock Price Today
Despite the significant rise on Wednesday, ACB is still down on the week. In order to close the week on a high note, the share price needs to gain another dollar. It closed the previous week around $4.50.
Support awaits at the weekly low of $2.90, but the round level of $3.00 may come into play. Likewise, any further advance may find resistance at $4. These round numbers draw attention and are of psychological importance.
See Marijuana Stocks Price: MORE Act lifts prices from lows, financials still weigh
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD hovers above 1.0500 amid French political jitters
EUR/USD is trading modestly flat above 1.0500 in the early European morning on Wednesday. The pair gyrates in a familiar range amid a broadly stable US Dollar and French political uncertainty, as the government faces a no-confidence vote in a busy day ahead.
GBP/USD clings to gains below 1.2700 ahead of Bailey's speech
GBP/USD is consolidating gains below 1.2700 in early European trading on Wednesday. Traders refrain from placing fresh bets ahead of speeches from BoE Governor Bailey and Fed Chair Powell later in the day. US ADP Jobs and ISM Services PMI data are also awaited.
Gold price slides below $2,640, fresh daily low ahead of Fed Chair Powell's speech
Gold price attracts some sellers following an intraday uptick to the $2,650 supply zone and hits a fresh daily low during the first half of the European session on Wednesday. The precious metal, however, remains confined in a familiar range held over the past week or so as traders seem reluctant to place aggressive directional bets ahead of Fed Chair Jerome Powell's speech.
ADP report expected to show US private sector job growth cooled in November
The ADP Employment Change report is seen showing a deceleration of job creation in the US private sector in November. The ADP report could anticipate the more relevant Nonfarm Payrolls report on Friday.
The fall of Barnier’s government would be bad news for the French economy
This French political stand-off is just one more negative for the euro. With the eurozone economy facing the threat of tariffs in 2025 and the region lacking any prospect of cohesive fiscal support, the potential fall of the French government merely adds to views that the ECB will have to do the heavy lifting in 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.