[ad_1]
Pot stocks traded higher following Joe Biden’s announcement as the winner of the 2020 presidential election. The five states that have passed legalization of adult cannabis and medical cannabis also supported the market.
Today we take a look at two of the hottest pot stocks on major exchanges in the United States.
About Aurora: Cannabis Aurora (NYSE: ACB) operates in medical cannabis, consumer cannabis, and hemp-derived CBD. It has low cost cultivation and global reach.
The current production is 142,500 kilograms per year.
About Tilray: Tilray Inc. (NASDAQ: TLRY) sells its cannabis products in 15 countries. The company also sells hemp and CBD products in more than 50 countries.
Tilray was the first company to export from North America to Africa, Australia, Europe and Latin America.
In 2018, Tilray became the first cannabis company to go public on a major exchange.
Tilray has partnerships with AB InBev (NYSE: BUD) and Novartis AG (NYSE: NVS) Sandoz unit.
Related Link: What a Bogus Presidency Would Mean for Cannabis Stocks
American market: Aurora, who named Miguel Martin CEO in September, called the US market a big corporate goal. It acquired Reliva, one of the largest CBD brands in the United States with products available in more than 20,000 stores.
Tilray strengthened its presence in the United States by acquiring Manitoba Harvest in 2019. The company is the world’s largest hemp food company and a growing CBD brand.
Industry Size: Aurora listed a market size of $ 200 billion in an investor presentation.
Tilray sees a $ 150 billion market for the global cannabis market. Its CEO, Brendan Kennedy, believes that “this is the first day in the cannabis industry”.
The company pointed out in a presentation that 41 of the 196 countries have legalized medical marijuana. Only two of the 196 countries have legalized adult cannabis use at the federal level.
And after: Aurora calls its future Cannabis 2.0. The company launched 23 SKUs in December 2019.
New products from Aurora include vapes, gummies, chocolate, baked goods and mints.
Tilray sees growth coming from the European market, which has 14 times the population of Canada. Tilray also sees multiple avenues to revenue growth, counting adult use, medicine, and hemp / CBD as areas for growth.
The path to profitability is a priority for Tilray. The company believes it can scale up to cut costs and expand the Manitoba Harvest brand into the United States.
Finances: Aurora reported revenue of $ 247.9 million for fiscal 2019. Revenue increased 349% year-over-year for the fiscal year. Kilograms produced and sold increased 920% and 629%, respectively, year over year. Aurora reported first quarter revenue of $ 67.8 million. This was split between cannabis consumption income of $ 34.3 million and medical cannabis of $ 33.5 million.
Tilray reported third quarter revenue of $ 51.4 million, which was stable from a year earlier. Excluding bulk sales, adjusted revenue increased 25% year over year. Cannabis revenue was $ 31.4 million in the third quarter and hemp revenue was $ 20.0 million for the company.
Stock performance: Aurora shares rose more than 100% last month thanks to the election of Biden and other states legalizing marijuana.
Despite Aurora’s recent price hike, shares are down 50% in 2020. The company went public in 2018 and shares are trading below their IPO level after seeing huge spikes in 2018 and 2019.
Tilray shares have risen 67% in the past month. Shares have fallen 41% since the start of 2020.
In 2018, Tilray was one of the hottest IPOs with shares ranging from $ 17 to $ 214. The shares are now trading below $ 10.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
[ad_2]
Source link