Aurora Cannabis: Broken In Several Ways
Aurora Cannabis broke recent strong support above $7.
The large cannabis player announced a new business model of growing cannabis at outdoor sites.
The move combined with Canopy Growth news suggests the adjusted EBITDA positive target isn't maintainable.
The stock appears poised to retest the $4s.
With a couple of recent disasters in the Canadian cannabis sector, Aurora Cannabis (ACB) will likely return to the recent lows. The sentiment shift in the cannabis sector will impact all stocks and a subtle signal of a new business model is problematic. The investment thesis continues to tilt negative until a lot of the hype is stripped from the cannabis sector and the desire to add new production ends.
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