Aurora Stock Faces Tough Times
One of my favorite marijuana stocks, Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB), has fallen on tough times. In the past three months, ACBFF stock has stagnated, only gaining a little over one percent. That time has been punctuated by crests and falls, at one point being up over 60% only to give all those gains back as the months wore on. Some analysts believe that Aurora stock is done with its massive growth. So is it time to drop ACB stock? Or at least play it more conservatively?
I think that’s the wrong move.
Aurora stock still has the potential for massive gains in the coming months, and I believe that the recent drop in value may actually make it an even more enticing stock due to its lowered value.
Aurora stock is one of the stronger ones in the market due to its massive market cap and savvy business moves.
Consider that when I first began writing about ACBFF stock about a year-and-a-half ago, the company has since jumped in value by 363%. My Aurora stock forecast has paid off and then some.
The reasons I was bullish on Aurora stock then are the same as now: massive growth potential, strong business acumen, and solid foundations.
Consider that Aurora had about 12,000 patients at the end of 2016, with that number ballooning to 21,718 by the end of 2017. It currently sits at roughly 23,000. (Source: “Aurora Cannabis Jockeys for Position as Sector Interest Cools,” SmallCapPower, March 29, 2018.)
The company has increased its global presence, making smart acquisitions and partnerships across the globe.
Perhaps none was as impressive as its acquiring of Pedanios GmbH. Pedanios gives Aurora a foothold in Germany, the largest marijuana market in the world, with federal regulation backing the use of medical cannabis. Aurora Cannabis supplies more than 2,000 pharmacies across the largest country and economy in the European Union.
The company has also made headway in Denmark, Italy, Australia, and South Africa.
Chart courtesy of StockCharts.com
I have long championed marijuana stocks that maintain a global focus, and it’s hard to deny that Aurora is one of the leading international marijuana companies.
Couple this with Aurora’s many state-of-the-art facilities that will help it keep up with high production demand, and you have a company that is ready to take advantage of several high-value markets around the world simultaneously.
But there’s really one major event on the horizon that I think will make investors more eager to buy Aurora low: Canadian marijuana legalization.
Aurora Stock Prediction: ACBFF Stock to Be Boosted by Canadian Marijuana Legalization
The most important event in the entire marijuana industry in 2018 is almost certainly going to be Canadian marijuana legalization.
Set for late summer—and potentially being pushed back into the fall—Canadian marijuana legalization will represent the first developed economy that will entirely legalize cannabis for recreational use.
Aurora is a Canadian company and already has a massive footprint in Canada. So when the Great White North turns green, it is one of the marijuana stocks most likely to see huge gains.
Couple that with its long-term potential via its international plays, and you have a company that is both likely to see an increase of value by at least 50% in 2018, alongside a solid marijuana stock pick that could reap benefits for years to come.
No company in any industry has a perfect record without dips. Aurora stock may not be flying quite as high as it has in the past, but that’s no reason to immediately abandon ship.
There will be a bottom to this fall, and when it does reach that bottom, I believe that will be a great time for investors interested in what I still see as one of the most valuable marijuana stocks on the market.
With its global presence, strong business fundamentals, and Canadian legalization of recreational marijuana right around the corner, ACBFF stock has all the tools to see strong growth in 2018.