Aurora’s Strategic Decisions Make It Difficult to Profit From Aurora Stock

Aurora Cannabis (NYSE:ACB) faces a conundrum. The company continues to make key acquisitions. that have increased its production capacity. As a result, Aurora has become the largest producer of cannabis, but issues with ACB stock itself should make investors pause before buying the shares. Given the company’s finances, investors might want to buy other marijuana stocks besides Aurora.

In a recent article, I stated that the market has correctly given ACB stock a lower valuation than that of its peers. Its price-sales ratio of just above 61 lags that of Canopy Growth (NYSE:CGC), Tilray (NASDAQ:TLRY), and Cronos Group (NASDAQ:CRON)…

Aurora Is the Leading Producer of Cannabis

Aurora has excelled in some areas. Its purchase of MedReLeaf raised its production capacity to an estimated level of 570,000 kg. That placed ACB ahead of the company seen as the industry leader, Canopy Growth. Some have also speculated that Aurora Cannabis will become the first company to reach the 1 million kg per year mark.

Aurora also made a key move in the increasingly important Latin American market last year. In November, Aurora acquired Uruguay-based ICC Labs for around C$290 million ($216.7 million). That does not sound like a huge deal on the surface. However, it gives Aurora a 70% market share in Uruguay, the first country to fully legalize marijuana. Through the deal, Aurora also obtained licenses to produce medical marijuana in Colombia and export CBD products to Mexico…

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