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3 major catalysts that will lead Aurora Cannabis (ACB)



<p class = "canvas atomic canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "As sales in the cannabis sector continues, questions about the long-term performance of Aurora Cannabis ( ACB ) have risen to the point where the company is sometimes presented as a curve case. "data-reactid =" 11 "> As sales in the cannabis sector continue , questions about the long-term performance of Aurora Cannabis ( ACB ) have increased to the point that the company is sometimes presented as a basket case.

While not near true, it points to the need to clarify what the long-term outlook for the company is and what the key drivers investors need to identify to know the health of the company at this time .

In this article, we will look at the three most important catalysts that investors must follow in order to make an informed decision to take a position in the company, or add more shares. [19659006] <p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " The Three Catalysts "data-reactid =" 22 "> The Three Catalysts

The three most important things to consider when researching Aurora Cannabis are the potential effects of derivatives on revenue and benefits, execution capacity production and more GMP compatible cannabis to sell.

Canada is in the process of allowing the sale of cannabis derivatives in the country. Although allowed in October 2019, sales are expected to start until the last weeks of December. This means that it will not matter to Aurora's figures until the end of the first calendar quarter of 2020.

Since there have been so many delays in Canada regarding licensing of outlets, I begin to believe that the terms of the second the calendar quarter is more representative of the potential than the first quarter. Lately, I have pointed out the first quarter as a sign of what to expect in the months and years ahead, but I am beginning to doubt how long it will take before sales roll out.

It remains to be seen how much product Aurora Cannabis will have available for sale in the first calendar quarter. The long-term potential is obvious, but in the short term it may take longer than I originally expected to come to fruition.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – -sm Mt (0.8em) – sm" type = "text" content = " Production capacity "data-reactid =" 27 "> Production capacity

By the end of June 2020, Aurora is expected to have a production capacity of well over 600,000 kilos annually. This will be the clear leader worldwide.

There have been some questions as to whether market demand will reach the level at which Aurora will be able to sell its products, but when considering an increasing amount will be used For the extraction and design of derivative products, it remains to be seen whether it will have too much supply for the market, considering that many of its competitors have also set up production capacity. It is too early to say with the supply / demand equation to know.

Another key factor is that many of those who need cannabis to sell are looking for regular partners who can meet their long-term needs. Being a market leader in production capacity and supply, in my opinion, Aurora will be the first company that appeared to meet supply requirements.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " GMP compliant cannabis "data-reactid =" 31 "> GMP-compliant cannabis (19659014) quarters to meet demand in the EU, and that will now change due to the increase in cannabis compliance. This will help increase European sales, which have much more price support than the North American market. In Germany – the most important market in the EU – it has a robust prescription plan for medical users to pay for cannabis.

Aurora has significant exposure to the European market, so will greatly benefit from the increase of compatible cannabis it has available for sale in the region.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Conclusion " data -reactid = "39"> Conclusion

The most important takeaway here is not only the three main catalysts, but also the time of all of them at the same time.

I consider the first calendar quarter of 2020 to be important in providing the first snapshot of the impact of derivatives, GMP-compliant pots and the growing amount of production capacity on Aurora's top and bottom lines.

But the really important figures will come in at the end of June 2020, when all these catalysts are met to form a picture of how the company is moving forward with its business model.

I am still very bullish on Aurora Cannabis, but see sold-out and ongoing delays in Canada in terms of retail licensing resulting in them taking longer than I thought to reach important milestones.

By June 2020, most of this was to be resolved, and Aurora should be positioned for strong and long-term sustainable growth. It may happen as early as the end of the first quarter of calendar 2020, but I'm beginning to think that June will be more indicative of where the company is in its growth cycle.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "According to TipRanks, consensus is on Wall Street at Aurora Cannabis stock is a "hold" for investors. But TipRanks might as well have said "buy" – because on average analysts believe the stock, which is currently at $ 3.58, can zoom in to $ 6.97 over a year, delivering 95% profit to new investors . ( See Aurora Cannabis Stock Analysis on TipRank ) "data-reactid =" 45 "> According to TipRanks, Wall Street consensus is that the Aurora Cannabis stock is a" hold "for investors, but TipRanks may as well have said "buy" – because on average analysts believe the stock, which is currently at $ 3.58, can zoom in to $ 6.97 over a year, delivering 95% profit to new investors. (See Aurora Cannabis Stock Analysis at TipRanks)

Aurora Cannabis ACB Course Objective


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