Opinions
Fabrice Taylor
Alcanna
CLIQ-T
PAST TOP PICK
Aug 21, 2017
Stock price when the opinion was issued
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It was an income trust, and so they distrbitued too much money and didn't keep enough cash to refurbish their stores and stay competitive. That hurt, then they the oil price fell (they're based in Alberta), then they made some dumb acquisitions. Aurora Cannabis and the Bitove family have since invested. They've cut prices to wipe out competition, then bought that competition--twice. This has worked. Eventually, they will raise prices now that they've wiped out those competitors. Alberta law limits other liquor stores within a certain radius from existing shops, so they have a moat. And they're getting into cannabis. This stock is starting to move. (Analysts’ price target is $8.05)
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. No longer backed by Aurora. Multiple attempts to redesign stores. Multiple products sold at steep discounts. Deteriorating margins. Unlock Premium - Try 5i Free
(Top Pick Sep 9/16, Down 13.38%) Alberta is not picking up any faster than anyone thought and then there was a proxy battle and the old management is selling off their stock. They could get rid of their US assets and concentrate on Alberta.