skip to Main Content
Is Aurora Cannabis the Titanic of Marijuana Stocks?

Comparing any stock to a ship probably isn’t the best analogy. However, I couldn’t help thinking of the Titanic after seeing some of the headlines over the last couple of months about Aurora Cannabis (NYSE: ACB)

For example, in December one analyst declared a one-year price target for Aurora of… $0. That’s not a typo. GLG Research’s Gordon Johnson predicted that the stock could be worth nothing in the not-too-distant future.

Then other analysts came out earlier this month with price targets that would have Aurora Cannabis losing close to half of its market cap. Keep in mind that Aurora already plunged 56% last year. And if that’s not enough, there are serious concerns that the company won’t be able to meet its debt covenants. 

Investors couldn’t be blamed if they have a sinking feeling. But is Aurora Cannabis really the Titanic of marijuana stocks?

The iceberg cometh?

We can sum up the main knocks against Aurora Cannabis in three brief points:

  1. The company remains unprofitable with no profits in sight.
  2. It has a boatload of debt.
  3. It’s running out of cash and will have to dilute shares further to stay afloat.

All of these statements are demonstrably true.

[Read more at Nasdaq]
This Post Has 0 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Stories

If FL Supreme Court approves cannabis ballot language, will voters go for recreational weed or not?

The long wait on whether Floridians will get a chance to vote to legalize recreational cannabis for adults 21 and older is almost over, as the Florida Supreme Court is…

Missouri strips marijuana licenses connected to company accused of predatory behavior

Missouri’s health department on Wednesday stripped two coveted marijuana micro-licenses tied to an out-of-state company that had been accused of predatory practices and had listed the licenses for resale. The…

Dug In: Big Island Grown’s Deep Cannabis Roots

Big Island Grown (BIG) is a vertically integrated cannabis company based in Kailua-Kona, Hawaii County, on the Big Island of Hawaii, whose reach now extends to several islands in the…

Unlock the Secrets of Social Media for Cannabis Brands

There are three primary ways that brands can use social media platforms for marketing: organic posts, shared posts, and paid posts. With paid posts still off limits to most businesses…

More Categories

Back To Top
×Close search
Search