Are Aurora Cannabis and Canopy Growth Solid Buys This Week?
Last week, marijuana stocks briefly shot higher in response to the U.S. House of Representatives Judiciary Committee's 24 to 10 vote on Wednesday to decriminalize marijuana at the federal level, expunge federal convictions, and enable states to craft their own laws regarding cannabis. Canada's two biggest marijuana companies in terms of production capacity and market share -- Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) -- both gained around 33% over the course of a couple of days.
Then reality set in.
Given that the Republican-controlled Senate appears highly unlikely to even bring the bill up for a vote, stocks in the cannabis industry ended the week on a sour note. Specifically, Aurora's shares dropped by 13.5% on Friday, while Canopy's slipped by 9.3%. That's not a surprising outcome, given that the U.S. is widely considered to be the most-valuable cannabis market in the world.
Source Fool.com
