Aurora Cannabis: Questionable Mexico Deal
Aurora Cannabis agrees to buyout distribution partner in Mexico after one business day.
The company has now formed an extensive global distribution and partnership network at the cost of major shareholder dilution.
A legitimate investor should question whether Mexicans will buy Canadian cannabis with readily available domestic supplies.
Maintaining key support at $5.40 is crucial for owning this cannabis stock.
When a company issues news seen as generally bullish by the investor community and the stock declines, investors should start asking more questions. Shareholders of Aurora Cannabis (ACB) find themselves in that situation with the stock trading down slightly on the news of buying the only licensed importer of medical cannabis in Mexico. The deal sounds too good to be true reinforcing my investment thesis of watching the price action in the stock for confirmation that a leader in the cannabis sector is headed in the right direction.
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