Will Coca-Cola be the next big player in the Cannabis Market?Aurora ACB:CN is a Canadian Cannabis stock that is up 15% today on news it’s in talks with Coca-Cola, about starting a partnership in the weed game. Imagine going to the corner store or wherever beer, wine & liquor are sold and seeing Cannabis infused drinks beside your Bud Light or Corona.
I’ve been asked by many of my subscribers to publish my picks, in real time. Unlike most pundits, analysts and personalities, I will be doing so in an open and transparent way, so that I show my process, win or lose.
One thing for sure is that Coca-cola does it BIG, so any deal for Aurora will be huge and have immediate impact on the companies earnings.
MOST CANNABIS STOCKS ARE OVER VALUED AND OVER HYPED. THIS IS A RISKY TRADE. PLEASE CONSIDER RISK OF LOSS BEFORE CONSIDERING TO PURCHASE THIS STOCK WITH ME. PLEASE ALSO RISK ONLY WHAT YOU CAN AFFORD TO LOSE.
At the time of this writing, Aurora is trading at $9.86. I have purchasing 2000 shares on the open market. Here are my trade parameters, for your consideration.
MY BUY PRICE: $9.73
BUY RANGE: $8.00 - $10.50
1ST TARGET: $24.50 - $15.90
2ND TARGET: $28.00 - $32.75 (if a deal actually gets done)
STOP LOSS: $7.20 - $7.60
Notice: Stocks like this can move very quickly, so experienced traders may want to use a mental stop zone, so they are not whip sawed out of a trade. Inexperienced traders may choose to put a simple limit at $7.50 and not re-enter the trade if stopped out. If the rumors fall apart, I will be exiting the trade at those prices.
While Aurora has not gone hyperbolic like other stocks in the sector such as Tilray (TLRY:US) and Canopy (WEED:CN, CGC:US), it is important to note it should not be worth more than $3, even with a generous fundamental valuation. This sector is on fire and completely controlled by momentum traders and speculators.
