Why Aurora Cannabis Inc. (TSX:ACB) Stock Could Soon Take Off Like Tilray (NASDAQ:TLRY)!

Aurora Cannabis Inc. (TSX:ACB) might skyrocket like Tilray Inc. (NASDAQ:TLRY) as early as late October. Here’s why.

| More on:
lush marijuana plants

Aurora Cannabis (TSX:ACB) stock has been picking up traction in recent months thanks mainly to increased speculation over who the company’s first major dance partner is going to be. Background discussions between Aurora and Coca-Cola have been the hot topic of late, and it’s making many cannabis investors increasingly euphoric.

If ever Aurora ends up tangoing with Warren Buffett’s favourite beverage company to bring about a CBD-infused relaxation beverage, there’s no question that Aurora shares will take off like a bat out of heck. But such a development, I believe, won’t allow for Tilray (NASDAQ:TLRY) levels of explosive upside, whereby investors can get rich and ruined all in a single day’s trading.

Why has Tilray become “the” go-to trade for cannabis investors?

Tilray has been the talk of the town ever since shares of the Nanaimo-based cannabis company went live on the NASDAQ. The stock instantly became a trader’s paradise with off-the-charts trading volumes — not because Tilray is a “special” cannabis company. Rather, management was good at marketing itself to the world. The incredible hype drew from the IPO, the timely dissemination of positive material information, and the exclusive U.S. tradability of the stock made it easy for traders around the globe to own a piece of the security that had the potential to make investors rich quickly.

Had Tilray IPO’d on the TSX, we probably would have gotten a lesser degree of volatility, and the company wouldn’t be worth nearly as much as Canopy Growth stock. Having a stock traded on the NYSE or NASDAQ not only allows U.S. investors to participate in the trade, but investors from across the globe see the U.S. as the number one hot spot for foreign investment.

While foreign investors could find a way to access TSX-exclusive pot stocks as they swap their currencies for Canadian dollars, I’m sure you’d agree it’s a huge pain in the neck for them and a likely deal breaker for many when you consider the fact that there’s already a growing number of pot stocks now on the more liquid NYSE and NASDAQ exchanges.

Why Aurora could become the next Tilray

Although Aurora may be exhibiting extreme levels of volatility already, I think what investors have seen thus far is just an appetizer compared to what’s on the horizon.

As such, Aurora investors should prepare themselves for Tilray-level volumes and volatility as early as this month, since Aurora’s NYSE listing could be in the cards shortly after legalization day (October 17), a time when the world will be watching Canada and all cannabis companies very closely.

Once Aurora finally hit the NYSE, the floodgates for international investment will open. And one has to think that Aurora is prepared to schedule the public announcement of promising material events and appearances on hit shows like Mad Money as Tilray did.

Who knows? A Coca-Cola partnership could be made official after Aurora becomes a dual-listed stock, which would cause ACB shares to explode like a shaken-up can of classic Coke!

Foolish takeaway

Aurora may be a household name for Canadians, but with no U.S. listing yet, Tilray, Canopy, and Cronos Group are the names under the U.S. (and international) spotlight. Watch for the spotlight to move in Aurora’s direction in the post-legalization era.

Tilray levels of volatility are coming soon to Aurora shares near you. Whether or not that’s a good thing depends on the strength of your stomach and what you intend to get out of pot stocks. Are you a gambler? Or are you in it for the long game?

In any case, I’d advise a majority of investors to watch the show from the sidelines. If you’re a gambler with disposable income, however, you may want to buy a ticket to see Aurora before they go on sale to the international public as early as late October. The Aurora late-October NYSE listing is currently waiting to be approved, but if I were to guess, it’ll just be a matter of time before the green light shines.

Stay hungry. Stay Foolish.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette has no position in any of the stocks mentioned.

More on Investing

young people stare at smartphones
Dividend Stocks

GST/HST “Vacation”: Everything Canadians Need to Know

The GST/HST "vacation" is a little treat for the holidays, along with a $250 payment. What should you do with…

Read more »

oil pump jack under night sky
Energy Stocks

Where Will CNQ Stock Be in 3 Years?

Here’s why CNQ stock could continue to outperform the broader market by a huge margin over the next three years.

Read more »

BCE stock
Tech Stocks

10% Yield: Is BCE Stock a Good Buy?

The yield is bigger than it's ever been in the company's history. That might not be a good thing.

Read more »

3 colorful arrows racing straight up on a black background.
Investing

1 Canadian Stock Ready to Surge Into 2025

Canadian Natural Resources (TSX:CNQ) stock is a sleeping dividend giant that may be about to wake up.

Read more »

Tractor spraying a field of wheat
Investing

Is Nutrien Stock a Buy for its 4.7% Dividend Yield?

Nutrien (TSX:NTR) is a well-known defensive commodities play. But is this stock worth buying for its dividend yield alone?

Read more »

Happy shoppers look at a cellphone.
Tech Stocks

So You Own Shopify Stock: Is it Still a Good Investment?

Shopify (TSX:SHOP) stock has had a run, but there's still room to the upside.

Read more »

Paper Canadian currency of various denominations
Investing

The Best Stocks to Invest $2,000 in Right Now

Do you have some extra cash to spare? Here are three Canadian stocks to add to your watch list today.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Friday, November 22

Continued gains in gold, oil, and natural gas prices could give the commodity-focused TSX benchmark a boost at the opening…

Read more »