Opinions
Alex Ruus
Aurora Cannabis
ACB-T
COMMENT
Jan 16, 2018
$11.910
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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All these cannabis stocks are in a bubble and it is a sector that hasn't produced any profits yet. Down the road there are going to be some profits made, but there is going to be a lot of damage in this sector. This is like going to Vegas. You play them for trades. There is going to be a very unhappy outcome some time in the next year or 2 when reality comes back to the market. He would be very cautious. They more or less trade together as a group, so treat them as trades.