Which Way will ACB Stock Go? Fundamentals are Good but is it Enough?

ACB Stock

Investors are trying to size up ACB stock.

If we look back on the month of October to the present day, it’s fair to say Aurora Cannabis (TSX:ACB) (NYSE:ACB) has been volatile. ACB stock has been playing games with investors.

What Way will ACB Stock Go?

On the 23rd of the month, Aurora Cannabis boosted its stock with its NYSE listing. By adding liquidity to the shares, ACB stock clambered over the $12 mark ahead of the listing. Investors were clearly excited about this greater liquidity.

But only a few days later, a wide-spread sell-off, which was experienced across the industry, cut ACB stock in half. Aurora was trading near the penny stocks range, selling for under $6 per share.

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Now Aurora is at it again. The stock is experiencing almost 30% gains in a week, hitting $10.59 CAD on Wednesday, only to be dropping -5% at present. Is it any wonder investors can’t quite peg where ACB stock is going to go next?

Aurora’s Fundamentals

In all this ACB stock confusion, Aurora’s fundamentals have not changed. In fact, the company seems to be only strengthening. In the Q4, the company reported pro-former revenue of over $33.1 million. This is a healthy figure considering many others in the industry couldn’t report such a high sum.

The company has facility additions to thank for that. In one year, Aurora added a fully licensed facility, began construction on two more, and funded a capacity of 180,00 kilograms of cannabis for the year.

You see, there’s a reason Aurora is one of Canada’s top four cannabis companies: growth. Aurora doesn’t stop moving.

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ACB Stock is Global

The $6 billion market cap company has a global presence with operations and sales in 18 countries and with Europe pegged as the company’s biggest distributor of medical cannabis. More and more jurisdictions are opening up in this field, with the UK being the latest.

Aurora’s vertical and horizontal integration has always given it a firm foothold in the cannabis market. It is all set for Canada’s adult-use market with nearly 250 stores opening in Alberta. And while legalizing recreational use in Canada will surely increase Aurora’s revenue stream, the company needs more countries to get on board too.

But no doubt they will. And when it happens, ACB stock will pay dividends to its investors who stuck it out through the volatility. 

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