Market High on Aurora Cannabis as Peltz Joins Pot Grower

14 March 2019  |  NEWS

Cannabis stocks have been on fire since last summer, and the buzz continued today as a major financier joined the industry.

Early leader Tilray (TLRY) might have fallen asleep after a blistering rally in September, but others have lit up more recently. Aurora Cannabis (ACB) glowed green today, ripping 12 percent to a five-month high.

The rally came after famed investor Nelson Peltz joined the pot grower as a strategic adviser. The CEO of Trian partners isn’t known for cannabis. But he has a history with major brands like Snapple, Wendy’s and Quaker Oats.

Peltz’s move came barely a week after Cowen initiated ACB with “outperform” rating. Analyst Vivien Azer said the company will “drive leadership” in the emerging industry. Her $14 price target is still 57 percent above the current $8.93 price.

Aurora Cannabis (ACB) chart with select indicators.

Aurora Cannabis (ACB) chart with select indicators.

ACB isn’t the only stock on the move. GW Pharmaceuticals (GWPH), a biotech developing cannabinoid prescription medicines, is about 18 percent in the last month. Strong earnings on February 26 drove the move.

Innovative Industrial Properties (IIPR), which rents out greenhouse space, has also climbed 17 percent.

Other well known companies in the space, like Cronos (CRON) and Canopy Growth (CGC), have gained about 8 percent in the last month. Those gains aren’t huge, but still well ahead of the broader S&P 500.

In conclusion, money keeps flowing into cannabis as the industry continues to gain mainstream acceptance.

This article was written by David Russell, TradeStation Securities, Inc., part of the Monex Group Inc, published on 11/03/2019.

Risk Disclaimer: The information above is of general nature only and does not take into account your objectives, financial situation or investment needs. Prior to you make an investment decision, please make sure you carefully read and fully understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other relevant documents that you can obtain from this website. Monex Securities Australia Pty Ltd (AFSL No. 363972; ABN 84 142 210 179) is the Financial services provider. Financial products trading carries risks and may not be suitable for all investors. You are strongly recommended to seek independent financial advice before making any investment decisions.

Tilray, Aurora Cannabis, GW Pharmaceuticals, Cronos, Canopy Growth,

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