Be Ready to Double-Down on Aurora Cannabis Stock as Headwinds Fade

Be Ready to Double-Down on Aurora Cannabis Stock as Headwinds Fade

Aurora Cannabis (ACB) stock took a beating since the latest earnings report, when it announced a 24 percent decline in net revenue sequentially, which included a 33 percent drop in Canadian recreational pot sales. Its market-leading gross margins and cost per gram of under C$1.00 weren’t enough to support its share price.Consequently, the company announced it would stop construction at two facilities which will save it approximately C$190 million. It also took steps to reduce the amount of its convertible debentures coming due in 2020.While the company will continue to face short-term challenges, it’s still one of the strongest positioned Canadian-based cannabis companies to take advantage of the long-term cannabis trend that is still in the early stages of growth.Long-Term Catalysts and Benefits to ReapThe two major catalysts for Aurora are the inevitable and significant increase in retail cannabis stores in Canada, and the impact derivative products will have on its top and bottom lines. Derivatives will be allowed to be sold in Canada in the last couple of weeks of December.Concerning the small number of retail cannabis stores, that has come from the slow approval rate of licenses in Canada. How quickly they are approved and the new stores…

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