Is the ACB stock price worth a buy?
Back then, many investors were tuning in to the price of ACB stock. It was one of the most promising 420 stocks out there. With Canada soon to reopen its borders, can Aurora Cannabis stock get high once again?
First, we’ll talk all about the Canada-based cannabis brand. Then, we’ll explore the growing trend of legal marijuana around the world. More importantly, we’ll explain why ACB might not benefit much from this widespread use.
Believe it or not, several companies are thriving during this pandemic. This includes businesses that sell cannabis products. Still, Aurora Cannabis stock may not be the best pick for your portfolio right now.
What is Aurora Cannabis (ACB)?
ACB was incorporated in 2006. It’s dedicated to researching and breeding new cannabis types. Four of its brands provide its medical cannabis lineup:
- Aurora
- CanniMed
- MedReleaf
- WMMC
Meanwhile, it also offers a wide range of consumer products. These are intended to target several markets and further Aurora’s growth. These products come from brands that include:
- Altavie
- Aurora Drift
- Daily Special
- San Rafael
- Woodstock
- Whistler
Cannabis in Canada
On October 17, 2018, Canada passed its Cannabis Act. It’s meant to control the production, distribution, and sale of cannabis across Canada. These are its objectives:
- Keep the plant away from children
- Stop its use for illegal activities
- Secure public health by letting adults buy legal cannabis
What’s more, it provided details on what adults are allowed to do with the plant. People who are 18 years or older may:
- Carry around 30 grams of legal weed in public, whether it’s dried or not
- Pass around 30 grams of the plant with other adults
- Purchase fresh or dried cannabis and cannabis oil from legal retailers. Also, they could buy the stuff online in select areas.
- Grow weed from licensed seeds. Adults may only grow 4 plants in their homes for personal use.
- Make foods and drinks with cannabis. However, they should not use organic solvents.
On October 17, 2019, the Cannabis Act allowed the sale of edibles. Yet, adults may only carry some kinds of cannabis in certain amounts. They may only possess a gram of dried weed or:
- Fresh cannabis – 5 grams
- Edibles – 15 grams
- Liquid product – 70 grams
- Concentrated product (solid or liquid) – 0.25 grams
- Plant seed – 1 piece
What’s more, people may buy medical cannabis. They only needed permission from their doctor. Also, adults aren’t allowed to sell weed to people under 18.
Cannabis around the world
The Great White North isn’t the only weed-friendly place on Earth. Other countries are now letting their people use cannabis products. Take their southern neighbor, for example.
The United States passed the Farm Bill in 2018. It placed federal rules on growing, making, and selling cannabis goods. Also, these states have legalized its use:
- Alaska
- Arizona
- Colorado
- California
- New Jersey
- New York
This is why many cannabis companies are expanding overseas. This includes Aurora Cannabis and other similar businesses.
Its CEO Miguel Martin said weed legalization in the US could help ACB. This month, the ACB stock price went up by 7.8%. Does this mean the price of ACB stock will be all “highs” in the long run?
Why you may want to avoid ACB stock (for now)
People often think a business will grow if demand rises. It’s what happens often. Yet, this might not be true for ACB. At the start of June, the ACB stock price was more or less $10.
A few weeks after, the price of ACB stock dipped to roughly $8.73. Why is this happening? Well, you may point to three reasons why it’s not growing much:
- Other companies are growing faster – Other cannabis companies are showing triple-digit growth. These include Curaleaf Holdings and Canopy Growth. Sadly, ACB sales in Canada dropped by 17%. Investors compare companies to find the most promising options, and ACB isn’t one of them.
- ACB doesn’t have enough variety – In December 2019, it came out with edibles and some vapes. ACB hasn’t sold any new types ever since. Meanwhile, other companies are more attractive due to their wide lineup. For example, Blosum sells CBD topicals and dog treats.
Together, these tell investors that other options are better than ACB. If you’re looking for a promising choice, ACB stock might not be it.
Yet, the company may turn things around. Check its Twitter page, and you’ll see that ACB is still trying. It’s looking for new types of cannabis for its customers.
With further research, they might create a promising cannabis type. Perhaps they might add more variety to their products. This may take years, though.
If you’re willing to wait, maybe ACB stock could grow. Until then, this investment isn’t likely to bear fruit for a while. Check other options that have a better chance for growth.
Final Thoughts
Don’t forget to research your investment options carefully. Check for real-time stock quotes and market data on the internet. Note that data is delayed at least 15 minutes.
Moreover, look outside the charts. Study their recent updates and past developments. Look at their products and services. This will give you a better idea of where a company’s stock is going.
More importantly, you shouldn’t limit yourself to one type of asset. There are several others you may add to your portfolio. For example, consider real estate crowdfunding.
It lets people invest in properties easier. All they need is around $500, and they’re ready to go! Crowdfunding properties are becoming popular across the world.
Even better, this could be your time to invest in cryptocurrencies. These digital assets are changing the world in interesting ways. They might boost your earnings too!
Learn more about Aurora Cannabis
Is cannabis legal in Canada?
Canadian adults may use cannabis for recreational use. They could also use medical ones as long as their healthcare provider allows it.
What is the ACB stock price?
At the time of writing, the price of ACB stock is around $8.73. Please check NASDAQ and other websites to find the updated ACB stock price.
Should I invest in ACB stock?
You may not want to invest in ACB stock right now. It’s not likely to grow in the short term. Also, its competitors currently look more appealing to investors.
Disclaimer: This article is the author’s personal opinion, which may differ from the “official” statements or facts. All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by Inquirer.net constitutes an investment recommendation, nor should any data or content published by Inquirer.net be relied upon for any investment activities.
Usa.Inquirer.net strongly recommends that you perform your own independent research and/or speak
with a qualified investment professional before making any financial decisions.
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