Who cares about 420 and smoking weed when people have other problems, like staying alive? This is, probably the reason number one why ACB shares are tanking.
It wasn’t long ago investors rioted over cannabis stocks like there was no tomorrow. But the hype surrounding stocks like Canopy Growth, Aurora Cannabis and Tilray has long since vanished. The latest evidence is Aurora Cannabis’ Tuesday night numbers.
Aurora posted a loss of $ 1.9 billion in Canada on sales of just $ 72.1 million in the fourth quarter due to write-downs and dumped cannabis sales. A year earlier, the company had broken even and turned over $ 98.9 million.
The write-downs were made on goodwill resulting from acquisitions – a total of $ 1.8 billion.
Despite the difficult framework conditions – customers are not prepared to pay Aurora’s premium prices – the group is sticking to its goal of operating profitably in the second quarter of the current fiscal year; however on an adjusted EBITDA basis.
The market capitalization is now only around $ 700 million. At the end of 2018 it was 10 billion.