Aurora Cannabis Climbs 34% to Lead Fuel Stock Rally Led by Biden in Presidential Race

Aurora Cannabis led a strong rally in the cannabis sector on Thursday, with Democrat Joe Biden leading the presidential election race and hoping that an administration led by him would achieve banking reform sooner rather than later.

The region is celebrating the green wave of election night in four states – Arizona, New Jersey, Montana and South Dakota – that voted to legalize adult-use cannabis, and a fifth, Mississippi, approved medical marijuana. . More than 111 million Americans, or 33.8% of the population, now live in states where pot has been approved for legal purchase by all adults.

“I would say it was one of the best-case scenarios for cannabis investors,” said Corey Bauer, chief investment officer and portfolio manager of Cannabis Growth Fund from Footy Capital Management. “A pure blue wave would be the ‘best case’ scenario, but I think we’ll find out soon after looking at the Senate.”

Canter FitzGerald’s cannabis research analyst Pablo Juanic said he hosted Curaleaf Holdings Inc. CURLF on Wednesday with senior government affairs officials.
+ 3.59%

+ 3.36%
And Green Thumb Industries Inc. GTBIF,
+ 5.04%
The vote was very positive and believed it would gain more supporters of the industry in the US Senate, further increasing pressure on the federal government to pursue reforms.

“Both speakers believe that under a Biden White House and Republican-controlled Senate, banking reform will pass in early 2021 and be included in a COVID relief package (Sen. Tommy from PA will chair the Senate Banking Committee, And this is seen as) a positive change vs. Edo to Sen. Crapo), “Xuanike wrote in a note to customers.

See:GW Pharma shares rally on earnings and news of late-stage trials of cannabis-based treatment for MS patients

“In general, both speakers believe that measured progress in the law is the best path forward at the federal level, and expect a version of the States Act (making cannabis federally permissible) to pass the Senate Post in the next mid-term. (It may soon be a 50-50 Senate split and a Biden WH) incident. “

The complete repeal of weed at the federal level – cannabis is still a Class I drug, the same category as heroin – is expected to take longer, however.

The panelists agreed that the New Jersey vote could encourage neighboring states, New York, Connecticut, Maryland, and Pennsylvania, comply with adult-use legalization, and avoid losing potential tax dollars to the Garden State is. The states are currently running into all major budget deficits because the coronavirus epidemic has reduced revenue.

in case you missed it:Cannabis experts are hoping that 2020 will be the year that New York finally legalizes weed

MKM Partners analyst Bill Kirk wrote in a note, “Although it changes in minutes, the US was available for federal changes on Thursday.

Aurora Cannabis Inc ACB,
+ 41.53%
, ACB,
+ 40.55%
The most widely held stock on the Robinhood Trading App, led the gains with a 34% gain in afternoon trading. Tilre inc. TLY
+ 30.33%
Was up 29% and Chronos Group Inc. CRON,
+ 16.69%

+ 16.07%
16% gain after better-than-expected earnings.

Read: Aurora went to the US CBD market inside cannabis

Canopy Development Corp CGC,
+ 11.57%
, Weight,
+ 10.94%
The largest of Canada’s licensed producers, by market cap, was 12.2% higher than its quarterly earnings next Monday.

Kirk wrote in the earnings preview, “We are still having difficulty expanding the canopy’s gross margin by 40% in Canada: the contribution of beverages is not enough and the growth of flowers is low.” “The canopy is still growing more product than it can sell,” he wrote.

MKM estimates that Canopy produced 22,990 kg in its latest quarter and sold 13,500 kg. “Larger counterparts are growing more weeds than the current demand,” he said. Canopy as Cancer Rate Neutral.

APHA, by Aperia Inc.
+ 9.85%

+ 9.35%
The increase comes 13% the day after he announced plans to acquire Sweetwater Brewing Co. of Atlanta for at least $ 300 million, marrying a long-serving craft brewery that sold “420 “Beer for the pot industry is well known.

While freshwater does not contain a drink with hemp, companies still think both sides should suggest that both sides can take advantage of freshwater contacts in the US and that Aprias has potential for coupling cannabis relationships There will be benefits.

Alliance Global Partners analyst Aaron Gray said the deal gives Afria a chance in the US that it can exploit once legalization occurs.

“Given the freshwater competition in the growing craft beer segment of Greywater and already profitable, we do not expect the business to be a drag on APHA. It is awaiting legalization, health and wellness as well as CBD products. Is an opportunity to present, ”noted Gray wrote. The alliance rates Aphria a buy with a C $ 9.00 stock price target.

Elsewhere in this area, Akarna Corp Cairn,
+ 28.09%,
A software provider for cannabis companies, was up 25%, while Curaleaf was up 4%. Cresco Labs Inc CL,
+ 3.71%
2.4%, OrganiGram Holdings Inc. OGI,
+ 12.90%
13% and HEXO Corp was HEXO,
+ 17.09%

+ 15.85%
Was up 17%.

Cannabis ETF THCX,
+ 13.39%
Up 13%, but down 17% to date, while the S&P 500 SPX,
+ 1.94%
8.8% and has obtained the Dow Jones Industrial Average DJIA,
+ 1.94%
Has fallen 0.6%.


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