Like a deflating tire, the North American cannabis index has been slowly sinking since mid-March, testing investors’ patience and enthusiasm for the sector. And just as a rising tide lifts all boats, a sinking tide can pull all ships down with it. In this case, it’s Aurora Cannabis (NYSE:ACB) stock that’s being pulled under by a cannabis market that seems to be taking a breather.
That tide will likely rise again as Canada prepares to legalize CBD edibles, beverages, extracts and topicals later this year. For Aurora in particular, however, there are three company-specific catalysts that make it especially attractive at the current valuation.
Sure, Aurora is the second-largest Canadian cultivator by market cap ($10.1 billion, to be exact), but there’s more to Aurora than its considerable presence in the Great White North. Too many investors ignore burgeoning cannabis markets abroad, but Aurora is an early mover in this field with multiple acquisitions and joint ventures.