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Aurora Cannabis: Desperate Times

Aurora Cannabis traded below $5 on Friday.
Management is out of tune with market realities in the cannabis space.
A move similar to Canopy Growth in the U.S. would signal a desperate company.
The stock isn't likely to hold $5 with a market valuation of over 10x lowered FY20 revenues estimates.
The case for owning Aurora Cannabis (ACB) at $5 turned weaker following FQ4 results. The stock traded below this key price target on Friday and the MKM Partners Sell call is unfortunately correct based on the numbers and the commentary from management. My previous investment thesis called for supply rationalization to make the stock a Buy at $5 and the company has gone further over the edge into global production growth.
Read the full article on Seeking Alpha.

Update - October 1
Aurora Cannabis breaks $4. No end in site so don't try to time the bottom here.

Update - September 26
The approval of the SAFE Banking Act by the House opens up the potential for Aurora Cannabis to enter the U.S. market is full force. See more commentary on WhoTrades.

Update - September 24
Amazing to see analysts now come out with negative and neutral calls on Aurora Cannabis after the stock is down 50% from the recent highs. 
-Aurora Cannabis (NYSE:ACB) initiated with Neutral rating and C$7 (4% upside) price target at CIBC.

Disclosure: No position. Please review the disclaimer page for more details. 


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