Aurora Cannabis made a less than par debut on the New York Stock Exchange on Tuesday. Perhaps it had something to do with the timing as many pot stocks were slumping again after seeing losses on Monday.
Shares of Tilray, Canopy Growth and Cronos Group all saw losses again. Bennett Gross, president and manager at Los Angeles-based L&S Advisors, remarked, “It’s about owning a piece of an industry that’ll be much bigger in five to 10 years. … We really like the financial strength of Canopy in terms of having a large war chest.” Canopy Growth recently received a $4 billion investment from Constellation Brands.
“Prohibition ends only once, and this industry could be worth tens of billions of dollars,” he also said”I think picking who the winners will be is virtually impossible. We’re happy owning a more established company.”
Canada-based credit rating agency DBRS said “for now, cannabis is still a relatively small-scale subsector within the context of the consumer products industry and the economy in general” and added that “not all will perform equally and many will fail.”
Aurora Cannabis CEO Terry Booth has been optimistic and has said that the company aims to “meet the growing demand for high-quality cannabis both in Canada and abroad” and is also working on “scientific research into medical applications of cannabis.”
Aurora shares fell as much as 15%. By Tuesday’s market close but saw a slight recovery.