Aurora Cannabis' (ACB) rapid run on Wednesday has many assessing where the true value in cannabis lies.
Shares of the Edmonton, Alberta-based cannabis company surged 13.87% on the day, rising to their highest price in about five months.
"What you have is a company that is undervalued," he commented.
In terms of valuation based upon projected sales, the numbers would be inclined to agree.
It would appear that Aurora is really only held back by its lack of a prominent partnership, something that has left the company trailing some of its peers, most notably Canopy.
While bringing Nelson Peltz aboard as an advisor helps alleviate some of that concern, the option to buy is quite a bit different than over $4 billion of investment from a company such as Constellation Brands (STZ) .
Of course, the cannabis industry is famous for its somewhat incongruous valuations. Cramer noted that his call of an undervalued company was in relation to its peers, not in absolute terms.
As such, it might be best to consider just how highly the market is valuing these companies in comparison to some more popular names.
The question that will come into play for cannabis investors is whether or not Aurora is undervalued overall, or just in the sphere of cannabis that continually extends estimates on market opportunity.
The answer really comes down to how much green investors see ahead for the cannabis industry, particularly among Canadian companies offered the head start.
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