Bears Will Win Big as It Bets Heavily Against Aurora Cannabis Stock

Investors that impulse bought cannabis stocks following the Democrats winning the U.S. Presidential elections will regret it. The mid-November spike that sent Aurora Cannabis (NYSE:ACB) did not last long. The company’s quarterly earnings report at first sent Aurora Cannabis stock above $12.00. But like clockwork, management took advantage of gullible investors by selling $150 million worth of shares.

With America Turning Green Things Only Can Get Better for Aurora Stock

With America Turning Green Things Only Can Get Better for Aurora Stock

Investors who still own shares should think of selling it to get what they can.

Q1/2021 Results Lifted Aurora Cannabis

On Nov. 9, the company posted revenue falling by 1% sequentially to 67.8 million CAD ($51.8 million) . This is almost flat from the prior quarter’s 67.5 million CAD of cannabis net revenue. It posted an adjusted EBITDA loss of 57.9 million CAD. The company highlighted the adjusted gross margin, before fair value adjustments, at 48%. CEO Miguel Martin once again suggested that the company is on the way to ultimately achieve positive cash flow and sustainable profitability.

As shown below, Aurora failed to beat analyst expectations most of the time. It only exceeded estimates in two of the six past quarters:

Surprise Type Announce Date Period End Date Actual Est. Surprise (%)
Negative 11/9/2020 9/30/2020 ($0.64) ($0.24) -166.70%
Positive 9/22/2020 6/30/2020 ($0.13) ($0.30) 56.70%
Negative 5/14/2020 3/31/2020 ($0.74) ($0.53) -39.60%

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