What Does Cannabiz: How to Invest in This Growing Industry - Ticker Tape Mean?

Aurora has rather the awful quarterly net loss streak going, and has managed to get away a nine-digit shortfall (in Canadian dollar terms) only once in the previous 5 quarters. ACB Earnings (Quarterly) information by YCharts It does not help that the previously free-spending company overpaid significantly for certain possessions as it was trying to scale up, and is now strained with hundreds of countless dollars of goodwill on its books.

Competing, as soon as a big investor hope following the big-ticket acquisition of Aphria that closed last May, also has a lengthening bottom line streak. has at least published one rewarding quarter over the past year-plus, however that's really not much to write home about-- particularly if we look at the more constant success of selected U.S.

A hazy future at best It's telling that in its newest quarterly profits report, Aurora led off by promoting its "transformation strategy." This is its continuous effort to cut costs through procedures like facility closures and worker layoffs. Its existing objective is to reach favorable adjusted revenues prior to interest, taxes, depreciation, and amortization (EBITDA) by the first half of 2023.

First, if a company is leading off an incomes report by discussing the evident effectiveness of its cost-cutting effort, it most likely has little else to cheer about. Second, positive adjusted EBITDA is a fairly low goal offered the regular web profitability of a terrific numerous Canadian and U.S. publicly traded companies.

Yes, it's been trimming the adjusted EBITDA loss, however it was still deep at a loss in 2021, at more than 114 million Canadian dollars ($90 million). Meanwhile, there's A Good Read to believe that ratings of rivals will either combine, or drop out of the over-served Canadian market. Nor are the country's consumers most likely to move away from the lower-margin leisure products they seem to prefer.

federal law that would enable pot imports, or an unexpected surge in medical cannabis legalization in other places abroad, are both pipe dreams for now. I do not know if Aurora stock is necessarily going to crash in 2022. However offered its present, highly unfavorable characteristics combined with the state of the pot industry in North America and abroad, I 'd put my cash on it continuing to head south instead of wafting higher in rate.