Aurora Cannabis: Problematic Profit Picture
Aurora Cannabis still has a long road to reach profitability.
Without cutting costs, the company has to grow quarterly revenues by over $50 million while hitting 60% gross margins.
The departure of the Chief Corporate Officer is another red flag and could indicate a planned restructuring in the works.
Avoid the stock until Aurora Cannabis can improve the profit picture.
Over the last week, Aurora Cannabis (NYSE:ACB) has seen a couple of key persons flee the company. The lack of a catalyst from Cannabis 2.0 products has to question the profitability picture of the Canadian cannabis LP in 2020 and beyond reinforcing my negative investment thesis.
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