With all time marijuana war coming to an end and increasing popularity among the public, cannabis stocks are the new investment hot stuff. It is the opportunity that one should not miss right now. However, you should be careful when choosing a pot stock to invest in. As with all other markets, with increasing interest and popularity lots of scammers have established themselves in the shadows. That is why it is always better to go with the big players.
One of them is definitely Aurora Cannabis Inc. They have been on the market for 2 years now, since 2016 and are licensed cannabis producers. Their headquarters is located in Edmonton. It trades on the Toronto Stock Exchange as ACB. The company has eight licensed production facilities and five sales licenses. Aurora Cannabis Inc. operates in 18 different countries across 5 continents. Aurora Cannabis offers wide variety of marijuana products: dried cannabis products, cannabis oil, doubled-milled decarb (DMD) capsules, and milled blend cannabis. Aurora stocks are promising to be one of the most rewarding ones for investors in 2019, so time to invest is definitely now.
Nowadays, Aurora Cannabis Inc. is the third-largest marijuana stock based on market cap. Some of the very evident reasons for investing into Aurora stocks include huge production capacity, global market presence and outstanding financial results. However, for making a more informed decision, let’s have a deeper look into numbers.
Aurora has shown a strong presence on the stock for a while now especially during the fourth-quarter and full-year results. In 2018, Aurora stock started trading on the New York Stock Exchange (NYSE) with the NYSE:ACB listing, making themselves very appealing to American investors. From summer 2018 to Autumn 2018, Aurora stocks increased by whole 209%, from $4.05 to highest point of $12.53 on October 16. In general, what makes the company worth the risk is its impressive medium and long term growth potential. The company is valued at $6.3 billion.
Aurora’s success is massively dictated by its huge production capacity of up to 430,000 kilograms per year. The number is predicted to increase further in 2019. Their operations keep growing. Their greenhouse facility, “Aurora Sky” is the biggest and the most advanced one in the world right now. Aurora produces 100,00 kilograms of marijuana annually only from their main 800,000 square feet greenhouse located at Edmonton International Airport in Alberta, Canada. The strategic location also comes with great benefits when it comes to transportation.
Another one of their greenhouses is located in Cremona, Alberta. “Aurora MTN” is the first ever indoor cannabis facility. The 55,200 square foot greenhouse can produce 4,800 kilograms annually.
Aurora Cannabis Inc. also owns share of Aurora Nordic (51%), located in Odense, Denmark. 1,000,000 square feet indoor greenhouse is still a work in progress, but once completed it will have a production rate of 120,000 kilograms annually.
And that is not all. The company has also invested in Cann Group Ltd (OTCMKTS:CNGGF, ASX:CAN), Australia’s first licensed cannabis company. (Source: Ibid.)
Besides great number of greenhouses, Aurora Cannabis Inc has 15 fully owned subsidiaries: MedReleaf Corp, CanvasRX, Peloton Pharmaceuticals Inc., Aurora Deutschland, H2 Biopharma Inc., Urban Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics Inc., Anandia Laboratories Inc., HotHouse Consulting, MED Colombia SAS, Agropro, and Borela.
The Aurora Cannabis stock price is 9.000 CAD nowadays. It is expected to rise to 12.854 CAD in one year, giving you the long-term earning potential of +42.82 % in one year.
To better understand the future of Aurora Cannabis Inc. let’s have a quick look at its recent past. The company showed very impressive numbers for the fourth quarter of fiscal 2018 (ended June 30. Its revenue advanced by 223% year-over-year to $19.1 million. The net income for fourth quarter was at $79.3 million. For the future quarters, Aurora will not only report revenue derived from medical cannabis, but also from recreational products. (Source: “Aurora Cannabis Inc. Announces Results For The Fourth Quarter And 2018 Fiscal Year,” Cision, September 24, 2018.) The gross margin on medical cannabis increased by 16%, hitting 74 % due to increased average selling price per gram of dried cannabis and also better cannabis oil sales.
While Aurora Cannabis Inc. already has a very strong presence on the market, it isn’t planning on stopping its expansion anytime soon. On the contrary, it keeps making bold moves to boost the production rate and global market share.
Terry Booth, CEO of Aurora said, [With] production capacity scaling up rapidly, we anticipate accelerated revenue growth during fiscal 2019. We have invested heavily in our organizational capabilities, including sales, marketing, and corporate talent and capacity, to ensure we will continue to drive strong and sustainable long-term growth. (Source: Ibid.)
Aurora Cannabis Inc. is a very strong contender on the stock market, if not the strongest. While not much can be said about its short term outlook, it is the long term one that looks rather promising. With a strong presence on Canadian and international market, Aurora Cannabis is predicted to keep increasing its growth. And high quality product and reliable and dependable supply is definitely something that makes not only the customers, but the investors happy as well.