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Tony: When can investors expect volatility to be kind of calmed down a little bit. And why is Auro Cannabis, providing guidance such a big deal for the market, you think?

Jeff: I think given the, just a slide in the downturn that we saw over the last quarter, the, any positive news, you know, when we basically reached capitulation sometime last week, it looked like where, you know, everything just got, you were throwing out the good with the bad and it was just a massive sell off in fear. And a lot of times it was justified and a lot of their earnings were readjusted down. Then you had all of these..what was the company that came out with all the fraud allegations?

Tony: CannaTrust

Jeff: Yeah. And you know, all of that was there was nothing but bad news, you know what I mean? And looking at our situation, you know, we came under a short attack that was, you know, drove the stock price down and invest the investment public was scared of the industry and rightfully so. And then you have all these, these allegations of fraud. And then when you have a positive news come out from one of the leaders in the industry.

Tony: It's like Manna from heaven.

Jeff: Exactly what it was. It's like, oh, okay. So the industry is not going to fold up and go away because look, they just upped their guidance and is moving forward and things are actually growing as, I really think, it got so bad that any good news was going to rise up, you know, move the market in a positive direction. And I think that's what happened.

Jeff Mascio, CEO of Cannabis One (CAAOF) , a cannabis multi state operator, believes that the sudden bump the sector saw on Tuesday after Aurora Cannabis ACB issued its guidance is emblematic of a sector that is starved for good news.

"Any positive news after when we basically reached capitulation last week and people were throwing out the good with the bad and there was a massive selloff because of fear," is a good thing for the sector Mascio said. 

This week Aurora provided revenue guidance that was in line with expectations, but that simple act in the midst of a myriad of bad news was enough to lift the entire cannabis segment. 

Fraud allegations against CannaTrust (CTST - Get Report) led to a massive selloff that saw investors dumping good stocks along with the bad. This week's rally is a direct result of that, Mascio told TheStreet.

To hear the full interview check out the video up top. 

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