Aurora Cannabis (ACB.TO) Buy, Sell or Hold

Aurora Cannabis (ACB.TO)

4.70

-0.22 (4.47%)

as of Jun 5, 2026, 8:00:00 pm Market Open.

235 watching

HOLD

One of the top four producers of cannabis in Canada. Back to fundamentals, you have to demonstrate the ability to make money. The company has not "super stumbled", but it is not lighting a fire. Trading at 8 times revenue, this space in general requires very high growth rates. It is one of the seniors in the space, so if you like this area it is one to hold.

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DON'T BUY

The cannabis trade is over and only day traders are in this space. And this will shrink. Cannabis have invested a lot in projects that won't make money. Avoid this sector.

COMMENT

Like all cannabis, it's struggling now. The chart is very short, so he has little to analyze. He can't compare this to Canopy; they're too different.

DON'T BUY

And the cannabis space in general He doesn't follow cannabis. These companies won't make money for a while as they spend on production capacity and staff. Also, the black market remains as big or bigger than the legal. He's waiting to see how this space shakes out. It's like the dot-com bubble.

DON'T BUY

Has a good uptrend, but is now sideway at $12. If it doesn't hold at $12, it will head south. Look at Canopy instead, the biggest name.

RISKY

He does not dig into their product but hopes to use it medically some day. For him it is the medical side that will be massive. He does not think there is a whole lot of upside. He would be a big buyer at $6. It is speculative right now.

WAIT

He is excited about the long term prospects from the health prospects of the industry. This is a medical play for him. He thinks they are pricing for 5 to 10 years from now. The sector will be very investible for the next decade after the next economic downturn where those with questionable outlooks will get hammered.

COMMENT

This space is starting to bottom out, but still a year or more to be a big deal. But the risk is off and volatility is lessening. He's starting to like these stocks.

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DON'T BUY

He does not invest in the cannabis space and will not until there is more clarity in who are the strong players in the space -- it is way too early. He thinks ACB-T is highly speculative and since there are no real earnings this is too far out there for him. In the long run there will be many losers in this space. He is willing to bypass the potential for a home run -- favoring singles and doubles instead.

SHORT

Not his favourite cannabis stock. They've diluted shares and are buying another company, which tells him that they're buying with stocks, not cash, which tells him that management believes their company is overvalued. ACB is very high compared to its peers. He's shorting it.

WATCH

Another sector where people are not sure what to make of it. A bunch of people were laid off in New Brunswick because they could not get supply. From a technical basis, where it is is very significant. He would expect a bounce here. If we get through $8 it would look like $10 and then $12.

COMMENT

He is not an expert in cannabis. There will be real industry going forward and some companies will prosper in the long term. The valuations still remain excessive. If he were to participate it would be with Canopy Growth as they have a connection with Constellation Brands in the US.

SHORT

He's short this. Mixed reports about the launch of cannabis in Canada since mid-October. Aurora at its peak had a $15-billion market cap, typical of investors betting on the future earnings of this sector. Auroura is highly acquisitive. Medical cannabis will be a great business. Aurora has bought in medical and recreational weed. Cannabis companies face tough slogging going forward. He needs to see the U.S. and European markets uptick in receational weed demand.

DON'T BUY

This sector has been caught up in euphoria. Peers are now breaking below their 200-day moving averages, which is not a good sign. This sector is very, very overvalued though it has a lot of potential. Cannabis is like the internet crash of the late-1900's. Same thing. There will be an industry, but you can't pick out the winners and losers at today's valuations.

DON'T BUY

He's wary about all cannabis stocks. He buys stocks with real cash flows and earnings, and that pay dividends, instead. How much success is already reflected in the stock prices? The profit margins likely won't evolve like they do in big tobacco (35-50% operating profit margins) or in liquor. Cannabis may evolve to become agriculture growers like corn or soybeans--capital intesive and low margin. There could be more bloodletting in this sector. One day, the dust will settle and these stocks will have a sensible valuation. Until then, own a producer with a unique strategy like medicinal or one with brand building which he doesn't see yet. Too much risk still.

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Aurora Cannabis (ACB.TO)