The Bullish and Bearish Case for Aurora Cannabis

On Tuesday, Aurora Cannabis (ACB) rallied more than 10% with the rest of the cannabis industry, only to fall 9% on Wednesday.  Investors are understandably confused about where this stock is headed.  So today I’m laying out the bullish and bearish cases for the company…

Bullish Case for ACB

The next quarter will be crucial for (ACB. The company will need to show further improvement in SG&A costs as it moves towards its goal of $40 million per quarter. If the company can post stable revenues with decreasing SG&A costs along and prove to investors that they are on track to record positive EBITDA by next quarter, then ACB has the chance to rally again.

I will also be watching how much revenue the company was able to generate from its international efforts in Germany and CBD sales in the United States. After announcing its acquisition of Reliva earlier this year, ACB said that it planned to grow global revenue.

Bearish Case for ACB

Despite delivering a relatively positive quarter for Q1, it’s pretty clear that ACB has resumed its downtrend. After the stock shot up from $5 a share to almost $17, it’s been declining since. Last week the price almost fell into single digits.

The company has also been unable to bring in a new permanent CEO. It’s hard to put faith in a company that has an interim CEO. Although the company has been making drastic changes to management, a new CEO is essential for the long term.

Also, ACB is still hauling around

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