Stock Market – Is Aurora Hashish Stock Headed to $0?
Aurora Hashish (NYSE:ACB) is likely one of the hottest hashish stocks within the stock market. However it should not be, based on GLJ Analysis analyst Gordon Johnson.
Johnson believes the Canadian marijuana producer’s share price will finally plunge to $0. Basically, he thinks Aurora will go bust and shareholders will lose all the cash they invested in its stock.
In flip, Johnson recommends that buyers promote their Aurora Hashish shares now. He even goes so far as to advocate utilizing the stock’s latest rally following the U.S. elections earlier this month to provoke a brief place. Quick promoting is a approach to probably revenue when a stock declines in value.
Johnson is essential of Aurora’s operational technique, which has seen administration alternate between a concentrate on premium hashish blends and value-priced merchandise. Neither technique has confirmed profitable. Via all of it, Aurora has posted large losses. It generated a $2.5 billion web loss in fiscal 2020 alone, after writing down a bunch of misguided investments.
With Aurora persevering with to burn by means of alarming quantities of cash, it would possible must dilute shareholders with public choices to lift capital, because it did simply days in the past with its $172.5 million stock sale. But until Aurora can attain profitability quickly, buyers may develop uninterested in throwing good cash at an organization that has misplaced greater than 85% of its value over the previous three years.
So, though the way forward for the hashish business stays vibrant, Aurora may not be capable of capitalize on the chance. And if it does not proper its ship quickly, its stock price may decline towards Johnson’s $Zero goal.
Tag: Stock Market