The recent time has not been very good for marijuana stocks. Even the very strong and well-established companies had to face the tough times that arose due to the coronavirus pandemic. Aurora Cannabis is facing a similar situation. Aurora Cannabis is a Canadian company and leading the cannabis production industry. However, it is facing losses and the situation of the stock is very speculative.
Let us consider the present statistics of Aurora Cannabis Inc. (TSE: ACB). The 52 Week Range of the company is from $3.7100 to 47.0400 with an average volume of 7,837,035. The market capital of the company is USD 491.152M.
It has been almost a year since the situation of the company in the stock market has been coming down. Although the rival companies are also facing a similar situation, Canopy Growth has shown recovery. Let us also analyze the current situation of the stocks of the major rival companies:
52 Week Range: $9.00 – 25.97
Average Volume: 4,720,058
Market Capital: 6.981B
52 Week Range: $4.00 – 9.00
Average Volume: 3,180,647
Market Capital: 1.858B
52 Week Range: $1.9500 – 6.4400
Average Volume: 5,381,278
Market Capital: 1.302B
52 Week Range: $0.3460 – 2.7000
Average Volume: 7,252,312
Market Capital: 292.505M
52 Week Range: $2.43 – 24.10
Average Volume: 7,151,306
Market Capital: 760.766M
While the stocks of Canopy Growth and Aphria have performed better than the other companies, the marijuana stocks are currently very rough and an investor needs to think over before investing money. If we compare with the status of Aurora Cannabis, there are better companies to invest in at present.
Although, the company is aiming and expects to accomplish positive adjusted EBDITA, i.e. earnings before interest, taxes, depreciation, and amortization, yet there is no surety that this will happen. Therefore, investors must consider every aspect before putting in their money. The company is doing its best to clear off the debts but this will happen soon or late, no one can say. With the clearance of debts, it also needs to buck up its resources. The quarterly earnings and profits have not been good but the company is trying to assure the investors that the situation will soon improve.
Aurora Cannabis is not a buy now stock as of now. The company will take time to reach the state where it can make profits and currently, there is more need to focus on sales. The company has to increase sales and only then there will be a chance that in the coming times, it will again stand back strong.
The overall situation of the marijuana –cannabis industry is not so well, therefore an investor must consider well and analyze each stock completely before investing in the stocks. The future might bring better times for these firms but nothing can be said as of now. It depends on the risk-taking capacity of the buyers to decide for these stocks.