Aurora Cannabis Inc. (NYSE: ACB), headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 500,000 kg per annum and sales and operations in 23 countries across five continents, Aurora is one of the world’s largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.

With its strong performance in the Canadian medical and consumer markets, early mover advantage in a growing list of relevant international markets, together with the undisputed leadership in high-quality, CBD-rich hemp production, Aurora is strategically positioned across the entire cannabis industry value chain to extend its rapid growth further. Also, the company is well poised to become the industry leader, led by its recent acquisitions, projected production, and immense growth opportunities from the opening of the Canadian adult use market. It has already matched Canopy Growth in the last quarter with its quantity of production and is likely to take a permanent lead before the end of 2019.

The company’ shares are trading with robust volumes after it featured in Cowen’ Top Pick in the sector, highlighting the substantial growth opportunities in the Canadian legal recreational market and burgeoning international medical market along with

The company’ business, operational and market profile also leverages on its strong management team. The company’ management team longstanding experience makes it second to none, and their visible and aggressive strategies have placed the company on a rapid growth trajectory to become a name to reckon with.

Key and unique differentiating factor:

Management’ commentary on Recent Performance:

Aurora continues to execute strongly across all of its market segments, as demonstrated by the 83% revenue growth over last quarter and the significant increase in confirmed production results,” said Terry Booth, CEO of Aurora. “Our brands continue to resonate extremely well in the consumer market, our patient numbers continue to increase steadily, and we have maintained our market leadership in Germany and other key international markets. We are experiencing exceptional demand for our Canadian medical and consumer products, as well as sustained strong demand internationally. With our Aurora Sky and MedReleaf Bradford facilities ramping up production as anticipated and our other licensed facilities operating at full capacity, we are reiterating our earlier guidance of achieving sustained EBITDA positive results from the second calendar quarter of this year (our fiscal Q4).”

So far financials are concerned, the company has seen yet another quarter of robust Patient and Revenue Growth. Aurora’s financial performance in the second quarter fiscal 2019 reflected the numerous achievements and quite gratifying progress. Net revenue was up 363% year over year. Furthermore, the management is very comfortable in reiterating its earlier guidance of achieving positive EBITDA in its fiscal Q4 from April to June 2019 with positive operating cash flow all in shortly after that.

ACB continue to successfully execute its differentiated and diversified strategy committed towards domestic and international expansion in the medical cannabis market, adult consumer use sales, production scale-up, innovation, plant, and medical research, and product development. Given the strong unmet consumer demand evident across Canada, the management is confident that its rapidly increasing production capacity will result in the continued acceleration of revenue growth.

Furthermore, the company also continue to perform well in its international medical business. Across its international activities, ACB have established significant early mover advantage and market leadership.  With the scale-up of Aurora’ domestic and international production facilities, analysts tracking the stock anticipates increased availability of the product to service these developing markets which will drive further global growth for the Company.

Analysts’ views: Research firms are incredibly bullish about the performance of Aurora with most of them re-rated the company basis its solid business and market profile and comfortable liquidity and overall financial flexibility. Per www.marketbeat.com, Their average twelve-month price target is $9.50, suggesting that the stock has a possible upside of 17.28%. The high price target for ACB is $9.50, and the low-price target for ACB is $9.50. Considering all this, the company is in an extremely favorable risk-reward position, and value investors should consider exposure in this sector as the backdrop remains favorable.

Below are the excerpts of recent ratings by brokerage house:

source: www.marketbeat.com

Recent announcements:

March 4, 2019 – Aurora Completes Whistler Medical Acquisition

Feb. 26, 2019 – Aurora Cannabis Expands into Portugal, Enhancing European Market Leadership. New Production Facility to Expand Supply to European Medical Cannabis Systems, Increasing Aurora’s International Footprint to 24 Countries

Feb. 25, 2019- Aurora Cannabis Receives Health Canada Licensing of Aurora Sky and MedReleaf Bradford. Sky and Bradford Facilities Combine for Over 128,000 kg per Year Production Capacity

Feb. 12, 2019 – Aurora Cannabis Announces Construction of Aurora Polaris. Centre of Excellence for Value-Add Products, Packaging and International Logistics

With this and other previous announcements, the company continues to exceed expectations. It is expected that the stock’s value will continue to appreciate as the market becomes more aware of its potential.

Exceptional market risk profile: Globally Positioned Industry Leading Production Capacity.  Ramping up 11 state-of-the-art cultivation facilities with expected production capacity of over 500,000 kg/year by Mid 2020

Successful Canadian Adult-Use Market Launch:

Q2 2019 Financial and Operational Highlights 

• Revenue growth was 83% quarter-over-quarter, and that comes after an average of 44% growth quarter-over-quarter over the previous six quarters.
• Liquidity and financial flexibility: As of December 31, ACB had $46.8 million in cash in equivalence subsequent to the quarter ACB closed US$ 345 million convertible note offering with a number of high quality, US, European and Canadian institutional investors.

Outlook: Path to profitability:

• Management reiterates previous guidance that based on the Company’s current confirmed production results; Aurora will have approximately 25,000 kgs available for sale in Q4 (April to June 2019). 
• The Company anticipates that with Aurora Sky operating at full capacity, as well as the continued reduction in operating costs, the cash cost to produce per gram will trend significantly lower. Management reiterates its expectation that the sustainable long-term operating cost at its Sky Class facilities will be well below $1 per gram.
• Ongoing disciplined cost management is expected to result in SG&A costs growing modestly as compared to revenue growth over the remainder of the fiscal year.  
• Consequently, and consistent with previous guidance, management believes that the combination of substantial revenue growth, low cost of production, and disciplined operating cost management will position Aurora to achieve sustained positive EBITDA beginning in fiscal Q4 2019 (calendar Q2 2019).
• Longer term, the Company expects that the launch of new higher value-added derivative product lines in relation to anticipated changes in Health Canada regulations, as well as the introduction of derivative products to international markets, will contribute to further revenue growth and margin expansion.

Key risk factors and potential stock drivers:

• The positive outcome of the upcoming catalyst (as outlined above), would be the key near-term trigger for the company
• Company’s ability to maintain its liquidity and financial flexibility to fund its incremental capital requirements.
• ACB’ ability to acquire and incubate other marijuana companies as the sector consolidates
•  In this sector, the regulatory framework and science are rapidly changing and evolving. Therefore, new companies are emerging, and regulatory risk always exists for the players in the industry. 

Stock Chart:

Comments:

• On Wednesday, March 6th, 2019, ACB was at $7.95, on an above average volume of 45M shares exchanging hands. Market capitalization is $7.991 billion. The current RSI is 61.26
• In the past 52 weeks, shares of ACB have traded as low as $4.05 and as high as $12.52
• At $7.95, shares of ACB are trading above its 50-day moving average (MA) at $6.65 and above its 200-day moving average (MA) at $6.83
• The present support and resistance levels for the stock are at $7.07 & $8.81 respectively. 

For Traders News Source recent picks track record and more click here – https://tradersnewssource.com/traders-news-source-new-members/

Disclaimer

Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.

Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.

This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.

We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.

When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.

17B Disclosure

Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.

PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.

Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.

TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.

The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.

Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.