24K-Production Thesis Aurora Cannabis’ (NASDAQ: ACB ) strategy of prioritizing its global medical-cannabis business while pursuing the premium-priced Canadian consumer market makes sense to cull its operating deficit, I believe, given that medical markets offer stable growth and high margins. With the Canadian medical business stable, I think ACB’s best hope for growth is international medical. The market for legal cannabis across Europe could open up in a big way if Germany follows through on a plan to legalize the drug for adult recreational use. Though German production could increase to help pharmacies meet increased demand, the country still may need to rely on imports for the next few years, which could be a tailwind for sales growth. Moreover, the management also seeks to monetize its intellectual property in genetics and biosynthesis. This multipronged approach to capitalizing on rising global demand for cannabis products — and cost benefits from production efficiencies — are key to near-term financial progress, including a goal to reach a positive adjusted Ebitda. I remain Bullish on the company as I believe ACB has significant topline expansion opportunities ahead of itself. I do not currently have a price target on the company. ACB stock price […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
