Opinions
Fabrice Taylor
Alcanna
CLIQ-T
PAST TOP PICK
Oct 05, 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
(A Top Pick Sept 9/16. Down 3.09%.) This was a kind of bet on a recovery in Alberta, because that is where most of their stores are. Has added more, because in the interim, they had a proxy battle and brought in new management and new directors. Pays a dividend of about 4%. At some point he thinks oil is going to recover. Also, what if they get a mandate in Alberta to sell marijuana like they did in Ontario. There could be some interesting upside here. Still a Buy.