The cannabis stocks have been quite bullish since the Biden win. Aurora Cannabis Inc. (ACB) is rocking today as Trump decides to transfer the White House to Biden.
The cannabis market which was so far considered to be illicit is leveraged towards being legalized. The current U.S. President Donald J. Trump has finally decided to go home and transfer the office to the new President-elect Joe Biden. That’s the reason why most of the stocks are pushing higher today.
After the election results started to come in favor of Biden, the cannabis stocks skyrocketed. On Nov. 6, 2020, Aurora Cannabis Inc. (ACB)escalated to almost $11 from $4.44 on Nov. 4. The stock continued to rally as the Biden victory was confirmed. On Nov. 9, Aurora stock was trading above $12 which was the highest since mid-July 2020.
As we write this at 12:24 P.M. EST, ACB was trading at $9.05 soaring by 26.04%. The trading volume was also high above 60 million compared to the average volume of 27 million.
The director of the General Services Administration, Emily Murphy informed Joe Biden that the Trump administration is ready to initiate the formal transition process. This is the first time Trump’s government has shown that they are ready to move on, after resisting Biden win and accusing the elections to be rigged.
The potential marijuana Industry& Aurora’s Target
One of the biggest drug industries is nearing legalization in the U.S. and internationally. With the Democrats in control of the House, marijuana reforms seem possible in the near future. There are already several bills in the new Congress pertaining to marijuana.
The marijuana industry has caught investors, researchers, and manufacturers’ sight. In 2019, the U.S. legal marijuana was estimated at $13.6 billion. While, marijuana companies raised up to $116.8 billion in capital during the year.
Wall Street Reporter recently published reports in which several CEOs from cannabis firms presented their point of view on their potential cannabis market and firm objectives.
The CEO of Aurora, Miguel Martin said that they are “Focused on Delivering ‘Quality Revenue’ through Premium Brands.”
Miguel said that the consumer has shown dynamic propensity with market share evolving swiftly between brands, unlike in more stable CPG categories. The company has a big opportunity to open their ways to premium brands.
Based on data from the Canadian market and certain other well-established markets, Aurora believes that the premium and super-premium brands will continue to rise. This will help the company to have a more balanced and articulated profile, and go for high margins and sustainable premium assets.
Aurora Cannabis Inc. (ACB)wants to expand its leading concentrates. The company is refocusing to develop its dried flower business and increase its gross profit. Overall, the cannabis firm is eyeing the premium market and make a big difference for itself in the future