Long
Aurora Cannabis (NYSE: ACB) The Mother of all contrarian trades
Aurora Cannabis has been on a downward spiral driven by a combination of multiple factors including Cannabis 2.0 slow roll out in Canadian provinces, amounting debt, recent Bond conversion and further dilution of existing shareholders, departing executives and a market glut of oversupply. Well, basically all things that could go wrong have gone wrong for Aurora, making it a clear "Sell" case; that is if you own the stock, ha!!... For those investors waiting on the sidelines, this could be a great entry point for the stock. Aurora just relesaed today a corporate update outlining long term strategy growth plans. The report can be accessed here: prnewswire.com/news-releases/aurora-cannabis-provides-corporate-update-and-confirms-cannabis-2-0-roll-out-300978848.html
Whats next?
Aurora is the only major cannabis player that has not inked a deal with a major player in the CPG space, others like Canopy Growth and Tilray have inked deals that are already priced into the stock, raising additional capital and giving investors relief. Nonetheless, Aurora has not only sufficient assets (excluding goodwill) to weather the coming months and gain strength as global sales resumes, the Canadian market opens up and further developments in the US unfold in 2020. In addition, ACB just bought a Hemp company that will allow them to enter the CBD US market.
In summary, this could be an interesting time to take a position in ACB and increase gradually as events unfold with significant upside as the stock bottoms. One analyst is giving it a price target of $0, but in my own view, when I hear such unrealistic opinions like this, most often coincides with bear markets coming to a bottom and about to turn making this a High Risk, High Reward trade and could be, the mother of all contrarian trades as we close 2019 and enter into the new year.
Do not take this as an investment advice and always do your own research before investing... always remember to place tight stops and risk manage every step of the way!!
Whats next?
Aurora is the only major cannabis player that has not inked a deal with a major player in the CPG space, others like Canopy Growth and Tilray have inked deals that are already priced into the stock, raising additional capital and giving investors relief. Nonetheless, Aurora has not only sufficient assets (excluding goodwill) to weather the coming months and gain strength as global sales resumes, the Canadian market opens up and further developments in the US unfold in 2020. In addition, ACB just bought a Hemp company that will allow them to enter the CBD US market.
In summary, this could be an interesting time to take a position in ACB and increase gradually as events unfold with significant upside as the stock bottoms. One analyst is giving it a price target of $0, but in my own view, when I hear such unrealistic opinions like this, most often coincides with bear markets coming to a bottom and about to turn making this a High Risk, High Reward trade and could be, the mother of all contrarian trades as we close 2019 and enter into the new year.
Do not take this as an investment advice and always do your own research before investing... always remember to place tight stops and risk manage every step of the way!!
Trade active
Getting to entry point territory... closed today at $2.01; post market trading up ~1.5% at $2.04... tomorrow will jump to around a high of $2.13-$2.15 and pull back to around $2.05-2.07 .. after that I believe it will trade sideways until year end, presenting a good entry point on any of the pullbacks to the $1.85-2.02 levels... Dont think well see ACB trading at those levels in the short term... Happy Trading!
Trade active
Don't let others do the thinking for you!... I've been closely following the recent influx of refried pessimistic news about Aurora Cannabis this morning; what I mean by refried is same news around executives departing Aurora, dilutive debenture move, etc... Yes, in a startup / industry consolidation mode there will be a lot of bumps in the road, this will definitely be fun to watch... Let's get real; ACB wont go to $0 as a recent analyst mentioned... And I do agree Aurora presents a risky investment, but one with significant upside... Again, not all "Pot" stocks will survive, but Aurora definitely will be one of the few standing as we approach this so called "Cash Crunch" for Marijuana companies in 2020...
Like I shared previously, ACB just hit bottom at $1.90 ... I entered my long position at $1.93 this morning, after the second pullback and as I mentioned earlier.
Happy Trading!
Trade active
I have recently shared my views on NYSE: ACB Aurora Cannabis , now I wanted to comment on the latest price target of $0 and "Sell" rating from analyst Gordon Johnson from GLJ Research ... I let you make your own judgement, but this is the guy that called for a price target of $109 on Tesla when it was trading at $244.10 back in May 2,2018 .. that was a 64% downfall from the current price at the time!! ... similar to the aggressive price target of $0 he recently gave Aurora Cannabis!! ... Well you know the story on Tesla , as of this morning it was trading at $430!! far from the $109 price target he gave back then ... WATCH HIS INTERVIEW HERE: youtube.com/watch?v=UM04G8dq...As it relates to Aurora, heres some interesting data points as it relates to Short Positions... they have decreased by 10% and % of short float now sits at 15%...
Short Interest Ratio (Days To Cover)
6.3
Short Percent of Float
15.44 %
Short % Increase / Decrease
-10 %
Short Interest (Shares Short)
155,950,000
Short Interest (Shares Short) - Prior
172,900,000
Trade active
Aurora Cannabis has been on a downward spiral driven by a combination of multiple factors, nonetheless, for those potential "would-be" investors waiting on the sidelines, this could be a great entry point for the stock. Aurora recently released a corporate update outlining long term strategy growth plans. 2020 could be a transformational year for cannabis stocks coming out of a leveling 2019... The report can be accessed here: prnewswire.com/news-releases...Happy Trading!
Note
NYSE: ACB Time to jump on board as the Short Squeeze unfolds...Note
Short Squeeze NYSE: ACB DONT FALL FOR ANY OF THIS CRAP!! - Motley Fool recommends to Sell today ACB!! why>??? cuz theres more people hold shares now that we have reached bottom and BOUNCING back!! on top there are a LOT of short sellers looking to buy right now to cover their short positions and they are finding it hard to get sellers to offload their ACB stock!!
heres the latest as of one hour ago from Motley Fool below ... Ha!!
---------
The Worst Mistake Aurora Cannabis Investors Can Make Right Now
Things could keep getting worse for the pot stock in 2020.
David Jagielski
David Jagielski
(TMFdjagielski)
Dec 31, 2019 at 10:00AM
Aurora Cannabis' (NYSE:ACB) stock is down more than 75% in just the past six months. While all pot stocks have been performing poorly, Aurora has still been one of the worst stocks to own during this stretch. Rival Canopy Growth (NYSE:CGC) declined 52% over the same period, which is close to how the Horizons Marijuana Life Sciences ETF performed. It's a troubling time for investors as things continue to go from bad to worse for the cannabis industry.
What should investors do?
Investors should consider selling their shares to salvage what they have today. It's not an easy decision since it locks in your losses, but if conditions improve and Aurora starts producing better, more consistent results, you can always buy back in at a later point. There's no guarantee that the stock will turn around from where it is today, and that's why it's important to consider the risks of holding on to shares of Aurora.
While the temptation might be to buy more shares of the company to average down your costs, it's a dangerous move that could leave you even more exposed to a crashing stock price. In a situation like this, investors are better off taking the advice of billionaire investor Warren Buffett: "The most important thing to do if you find yourself in a hole is to stop digging."
Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake – it is coming.
Cannabis legalization is sweeping over North America – 10 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.
And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.
Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks.
Note
Hope everyone is hanging tight! and on board; initiated long positions at the $1.75-1.88 range! ; see you at $6-7!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.