Aurora Cannabis overview of the company.

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What will you find in this video:
1-Info about ups and downs of Aurora.
2-Balance sheet of Aurora
3-My holdings of Aurora shares
4-My conclusions about Aurora as an investment.


Aurora Cannabis once a shining star of marijuana industry fell of the grace drastically during past 21 months. Stock fell down 89% since March 2019 until January 18, 2021.
But there is still 10% left and this 10% is growing. Since October 28, 2020 stock of Aurora increased 214%, extremely huge volatility.


After the hype of legalization of marijuana in Canada on October 17, 2018 Aurora went on massive shopping spree. Many highly overpriced acquisitions. I’ll mention just one:
In 2018 Aurora acquired MedReleaf for $2.03 B. This was the largest acquisition in marijuana industry and probably the most overpriced deal so far.
In addition to the more than a dozen other acquisitions Aurora Cannabis has completed over the past 3.5 years which turned out to be mostly overpaid the company's balance sheet has ballooned to the point that they have to write off $2.43 billion in goodwill in January 2020.
This represents 57% of the company's total assets, and it's considerably larger than Aurora's current market cap.
After spending money like there is no tomorrow came a crash for the entire cannabis industry starting in March 2019. Aurora stock was hit the hardest because of all the acquisitions which deeply undermined credibility of the company in the eyes of the investors. Stock went down from March 2019 until now 89%.
Aurora had to go through a reverse stock split 12 to 1, on May 11, 2020 because stock was going under $1 and was facing being de listed from NYSE.


Aurora was like a Titanic, everybody was running away from this sinking ship
but surprisingly this ship did not sink yet and for the past 3 months went up 214%.
Huge cost cuts, writes off and increased efficiency was implemented into the company. On the top of that entire industry started seeing slightly increased demand and Aurora acquired in May 2020 U.S.-based CBD company Reliva which gives Aurora access to the US market.



Aurora with it’s terrible history of acquisitions and with huge share diluting history is purely speculative stock. Recent growth of stock 214% is not an assurance that the company will grow at a similar pace for the next couple of years although recent result of the presidential election in US is definitely a wind in to the aurora sail because democrats are for legalization of marijuana on the federal level.
Personally I’ll hold my aurora shares until they recover and bring me some kind of return. I don't even know what kind of return I should expect from them now.
OR they may go to ZERO if the company keeps diluting the shares and keeps doing unnecessary acquisitions.
I hope that the recent course of new management of Aurora to clean their balance sheet and keep expenses under control will be truly and honestly implemented.

Sources:
https://www.newcannabisventures.com/a...


https://seekingalpha.com/symbol/ACB/o...
https://www.reuters.com/article/us-me...
https://www.prnewswire.com/news-relea...
https://www.fool.com/investing/2020/0...
https://www.fool.com/investing/2019/0...



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"Intelligent Investor" by Benjamin Graham
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"The most important thing Uncommon Sense for the Thoughtful Investor" by Howard Marks
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Disclaimer:
Please be advised that I'm not an financial advisor nor financial professional. I'm not here to tell you what you should invest in and what kind of stocks to buy. Always do your own research and consult financial professional before buying any investments. All of my videos are strictly for educational, entertainment and informational purposes.

Disclosure:
Some of the links here are affiliate links and if you buy something using this links I may earn small commission with NO additional costs to you. Those funds I'll use to make better quality content for you and I'll pay for English tutor so my language doesn't sounds so terrible like right now and I'll make less grammatical and accent mistakes.