Is NYSE: ACB stock going up without a good reason? I think so. – Idaho Reporter

NYSE

Is NYSE: ACB stock going up without a good reason? I think so.

Canadian company Aurora Cannabis (NYSE: ACB) shares close today at $17 per share, a 51% increase from the opening price. This is due to the quarterly report where ACB increased its net income by 35% compared to the previous quarter.

The euphoria was almost over for the stock and the stock had lost more than 90 percent of its value. Has the euphoria returned and will the stock recover? There are gullible everywhere, so everything is possible, that is why we think might go up for a few more days.

The share has been trading sustainably above the SMA (50) line for the first time since its downward trend, thus generating important buy signals. The SMA (50) line has been a significant support for the stock to date. The super trend line was also overcome and further buy signals were shown.

Where do we see the next resistances for ACB stock price?

We see the first resistance at $ 18.58, when it is overcome, the next two target is at $ 21.77. If this resistances is successfully overcome, the stock could target the $ 30 mark.

But in all fairness, why would anyone invest in a stock that did not offer anything groundbreaking to vouch recent rally? There are tons of good stocks out there, and a stock that lost 90% of its value over the past 12 months is definitely not the best options for your portfolio.

What others are saying

Sean Williams decided to read between the lines (of Q3 report) and this is what he said:

I just find it a bit odd that nowhere in Aurora’s operating release did the company truly discuss its bottom line.

And he continues saying that:

Aurora’s inventory continues to rise. While some level of backlogged product is good, Aurora’s inventory levels have more than doubled over the past nine months to CA$251.2 million

Maybe Aurora Cannabis knows something we don’t know so they are piling up their warehouse with 420.

In words of Twitter user that goes by Jordan Phillips:

Aurora Cannabis is a short term play. Don’t let a reverse stock split distract you from the fact they are losing 100 million quarterly.

A very smart guy, also on Twitter, Eddy Elfenbein, said something that you should pay attention to:

Aurora Cannabis +53%. Or, if you prefer, it went from 89% off its high to only 83% off its high

Braden Maccke from TheDeepDive is of similar opinion. In an article named “Aurora Cannabis Earnings Illustrated: Empty Calories Giving The Market A Sugar High” he seems to be saying how ACB is a no-go but there are die-hard ACB stock fans out there that you can always count on.

Aurora’s best off-balance-sheet asset may be the legion of Fox Mulders that it has created. As long as they’re out there, wanting to believe, Aurora will always be able to get the market’s attention.

With this wonderful quote I am closing the article, hoping that you now know where (not) to invest your money.

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