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Aurora Cannabis: Finally, The Needed Reorg With A Major Catch

Aurora Cannabis announced a major reorg which includes the CEO retiring and cutting over 50% of operations expenses.
The company guided to substantial revenue misses for FQ2/FQ3 and provided no indication Cannabis 2.0 products are meeting sales goals.
The cannabis company plans to launch a value brand.
Even at $1, Aurora Cannabis would still trade at 3x updated sales targets for FY21.
Following news Aurora Cannabis (ACB) was planning to cut 10% of the workforce, the company came out on February 6 with the announcement of a major reorganization. The Canadian cannabis company has finally made a move to rationalize the business with the market realities, but the cuts are so massive that my investment thesis is still on hold due to the risks of meeting updated loan covenants and limited cash balances to execute a complicated corporate pivot.
Read the full article on Seeking Alpha. 

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


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