Aurora Cannabis (TSX:ACB)(NYSE:ACB) stock has dropped 29.9% in 2019 as of close on October 30. Shares have plunged 42% over the past three months. Like another top producer, Canopy Growth (TSX:WEED), Aurora has encountered turbulence due to weaker-than-expected earnings.
Fortunately, Aurora expects to achieve profitability in a much shorter time frame than Canopy. On the other hand, its cash situation is far more alarming. Where Canopy’s partnership has granted it a war chest in the billions, Aurora has been on the knife’s edge when it comes to its cash in recent months.
Aurora’s cash and securities balance was just over $200 million at the end of the fourth quarter, but it raised an additional $360 million credit facility in September to give it some breathing room.
The company is set to release its first quarter results next month.
Analysts are expecting to see a ramp up in production, as has been in the case in recent quarters. Aurora had hoped to achieve profitability in the previous fiscal year, but this turned out to be an overly optimistic assessment.
It now expects to reach this goal by the second quarter of fiscal 2020.
Shares of Aurora are trading close to 52-week lows at the time of this writing.
The stock last had an RSI of 34, putting it just outside of technically oversold territory. A lot is riding on this next quarterly report, but investors who roll the dice can scoop up the stock at pretty nice value right now.
Related Stories
