Analysts see a bright long-term potential for the company
Aurora Cannabis Inc., the Alberta-based cannabis company that is now traded on the New York Stock Exchange (NYSE), has had a banner year. It reported strong results for the year in September and the company definitely has a bright future. While the markets may have receded somewhat in the past week after a substantial explosion, Aurora is poised to bounce back and could be better than ever.
Aurora’s stock saw a nice increase leading up to Canada’s legalization of marijuana on October 17. It had jumped 209% in the two months prior – a better return than anyone could have anticipated. Investors started focusing all their efforts on marijuana stocks, including Aurora, which became the third-largest marijuana stock based on market cap.
As quickly as the marijuana markets went up, they came down. Aurora’s price fell 51%, but this isn’t an indication of waning strength at the company. It is more closely related to the general market sentiment than with the company’s operations themselves.
Aurora now has sales and operations in 18 countries around the world. Its market cap sits at $6.3 billion, behind Canopy Growth ($8.2 billion) and Tilray Inc. ($8.9 billion). It remains a strong buy due to the fact that it has massive production capacity, which is fueled by an increasing number of grow operations.
Aurora also is the majority owner of Aurora Nordic, a Danish joint venture between the company and Alfred Pederson & Son. The facility is a hybrid greenhouse that measures one million square feet and that, when completed, will be able to cultivate more than 120,000 kilograms of cannabis.
The company is maintaining an aggressive strategy of mergers and acquisitions that doesn’t show any signs of slowing down. It is working to become the global leader in marijuana production and this will pay off for investors over the long haul.