Opinions
Bruce Campbell (2)
Aurora Cannabis
ACB-T
COMMENT
Mar 10, 2017
$2.390
Stock price when the opinion was issued
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DON'T BUY
He feels all cannabis stocks are gambling stocks. A maturing debenture is expected to keep downward pressure on the share price. There is no assurance that any existing company will be a survivor -- it is simply too early. No one is making money in this space. Without being able to predict revenues and expenses, it is too risky. He would stay away from these.
BUY
They each have their own strengths. He would pick Canopy (WEED-T) because they are the 800 lb gorilla. Aurora has lots of news about balance sheet challenges but they have low costs that he thinks will still come down further.
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A cannabis company that has come roaring on to the scene. They were probably a little slower coming out of the gate than what you saw from a few of the others. This one is proposing a greenhouse project at the Edmonton International Airport, which is being billed as the world’s largest indoor cannabis grow when finished. They have about $150 million on their balance sheet now, that will be used to fund projects. Looking at valuation versus their licensed sales capacity, they are certainly ahead of the others from a valuation standpoint. As long as they continue to execute, it is probably going to be good, however the CEO tends to be a little on the promotional side. If you are a trader, take advantage by Selling when everybody loves it.