Is Aurora Cannabis Stock a Buy?
Many cannabis stocks are trading for a fraction of the prices they commanded just a year ago. One of the most surprising crashes over the past 12 months has certainly been Aurora Cannabis (NYSE: ACB). As bad as the benchmark Horizons Marijuana Life Sciences ETF (OTC: HMLSF) has been, cratering by about 70% over the past year, Aurora's done even worse -- it's lost 92% of its value.
A lot has gone wrong for Aurora during that time, but if the company can turn things around, it's not inconceivable that the stock could double, triple, or even quadruple in price. That said, a turnaround is a lot easier said than done at this point. Let's take a look at whether the stock is a buy today, and if not, what needs to happen before investors should consider taking a chance on Aurora.
Undoubtedly the largest challenge facing Aurora and other pot stocks today is liquidity. In February, cannabis investment bank Ello Capital projected that Aurora had just 2.3 months' worth of liquidity left, among the worst in the sector. That was even before the coronavirus officially reached pandemic status and started wreaking havoc all over the world.
Source Fool.com
