I get a lot of questions from new investors about Aurora Cannabis, mostly in response to media coverage about how share dilution has ruined the share price. I have to explain time and again, that the cannabis industry as a whole, has been making moves in anticipation of legalisation, farm bill, etc. If you look at ACB's wave of the past year or so, it becomes clear that ACB is extremely volatile. But if you compare the wave with other pot stocks, you get a clear confirmation that the highest peaks and the biggest drops were moves of the entire industry.
I figured to set up a little hybrid analysis, to chart out what news caused ACB to surge, and what caused ACB to tank. This way, it becomes very clear that news of all share acquisitions never brought the stock price down all that much, and in the long run only contributed to growth. It is the constant debate between pro and con politicians that have caused the biggest impulse waves and deepest drops.
I think this is a pretty decent, general overview of some of the most important moves of the past year. There are, of course, more events and announcements that have caused the stock to move, but overall, I don't think share dilution was any problem for ACB at all. We see all stocks deals all the time, and it is in reality, the only way to cannabis companies to make significant moves until more legalisation is realised. The fact is, most cannabis companies have diluted their stocks for the exact same reason. In the future, earnings can and will be used to buy back shares by most of these companies.
We have to consider the possibility that the booze lobby (Constellation) and cigarette lobby (Altria), that both have significant stakes in Aurora's biggest competitors, are trying to hindre ACB's growth to secure the success of their own investments. Therefore it is important to do your own research, and keep an open mind when you read Motley Fool news articles and (paid?) news items on SeekingAlpha. Currently, ACB is the only cannabis company with a potential for world domination, that still trades at under $10.
Personally, I am not worried that we may see ACB decline. To me, it would be a beautiful opportunity to buy more shares. Make no mistake: with markets rebound in 2019, we will see a positive EBITDA from ACB on the next earnings call. Production only continues to increase, as does its international footprint. If a major financial deal doesn't happen, Aurora will soon not need that anymore. I even doubt that they need this at this time. One way or another, ACB will succeed. How much of an upside do you see?
I am long ACB. This is not financial advice, it reflects my personal opinion with hopes to inspire yours. Please share your thoughts for my consideration. Debate is good for the friction of thought.
I figured to set up a little hybrid analysis, to chart out what news caused ACB to surge, and what caused ACB to tank. This way, it becomes very clear that news of all share acquisitions never brought the stock price down all that much, and in the long run only contributed to growth. It is the constant debate between pro and con politicians that have caused the biggest impulse waves and deepest drops.
I think this is a pretty decent, general overview of some of the most important moves of the past year. There are, of course, more events and announcements that have caused the stock to move, but overall, I don't think share dilution was any problem for ACB at all. We see all stocks deals all the time, and it is in reality, the only way to cannabis companies to make significant moves until more legalisation is realised. The fact is, most cannabis companies have diluted their stocks for the exact same reason. In the future, earnings can and will be used to buy back shares by most of these companies.
We have to consider the possibility that the booze lobby (Constellation) and cigarette lobby (Altria), that both have significant stakes in Aurora's biggest competitors, are trying to hindre ACB's growth to secure the success of their own investments. Therefore it is important to do your own research, and keep an open mind when you read Motley Fool news articles and (paid?) news items on SeekingAlpha. Currently, ACB is the only cannabis company with a potential for world domination, that still trades at under $10.
Personally, I am not worried that we may see ACB decline. To me, it would be a beautiful opportunity to buy more shares. Make no mistake: with markets rebound in 2019, we will see a positive EBITDA from ACB on the next earnings call. Production only continues to increase, as does its international footprint. If a major financial deal doesn't happen, Aurora will soon not need that anymore. I even doubt that they need this at this time. One way or another, ACB will succeed. How much of an upside do you see?
I am long ACB. This is not financial advice, it reflects my personal opinion with hopes to inspire yours. Please share your thoughts for my consideration. Debate is good for the friction of thought.
Comment:
Turned out to be spot on :-)
Comment:
Move within the channel, it did. The break out is still to come...
🅱🄰🆁🅺🆆🄾🆁🆃🅷
If you are still in doubt about ACB, you should read this:
seekingalpha.com/art...ry-leader-many-years