For some time I've been on record saying the companies most rewarded in the short term would be those that generate the most revenue. This is one of the major reasons Canopy Growth has been rewarded with such a high valuation.
That said, I've also said companies are going to have to start whittling down their costs as they boost revenue. Aurora has been doing an excellent job at it while Canopy Growth continues to suffer large losses.
For example, while Aurora has guided for probable profitability in this quarter, Canopy Growth reported an EBITDA loss of approximately $74.3 million in the last reporting period.
Over the next several quarters Aurora is going to have a lot of inventory to sell as it harvests from its huge capacity, while lowering the costs to the point of being profitable. This, in my view, is going to result in the company standing far above all of its competitors.
It also has the potential to add another 400,000 kilograms annually based upon its existing facilities and holdings.
Aurora Cannabis (ACB) Separating Itself from the Rest of the Pack
SmarterAnalyst § email@example.com (Ben Mahaney) SmarterAnalystJuly 1, 2019 There are several things aligning for Aurora Cannabis (ACB) that will rapidly separate it from its competitors, including Canopy Growth. Among a number of areas, it leads the industry in production capacity, international markets it operates in, and is quickly slashing cost per gram to the point it should drop below a dollar a gram.
As it's doing this, it's ramping up its production rate to the point it will be selling a significantly larger amount of cannabis that produces positive EBITDA in the very near future; probably in this quarter, but without a doubt in the next quarter.
With that amount of inventory, and its production capacity expected to climb to a run-rate of about 625,000 kilograms annually by the first calender quarter of 2020, this will provide Aurora with a flexibility to allocate its product to various segments that none of its competitors can match at this time.
That's important to take into consideration because in the last quarter it reported it had to hold back some of its inventory in order to ensure it would meet its medical cannabis demand. That resulted in the loss of recreational pot sales that could have boosted its performance in the quarter.
Aurora Cannabis (NYSE:ACB): A Leader Making Big Investments... Aurora Cannabis is another Canadian cannabis giant. While the company already has a very strong market cap, sitting at nearly $8 billion, many (including analysts) argue that it is poised for strong growth ahead. There are a couple of reasons for this.
With the legalization of adult use recreational cannabis in Canada, the biggest hurdle for the company was taken out of the way. Now, the company?s growing production capacity gives it a strong competitive advantage in its sector.
In fact, the company is working on a massive expansion of its 92,000 square foot operation. Back in April of 2018, Aurora announced that it would be expanding its facility by adding a 1.1 million square foot greenhouse.
While most cannabis producers in Canada have a strong focus on the recreational sector, Aurora Cannabis seems to be taking a different approach. The company is focused primarily on the medical side of the cannabis sector. While the medical side of the sector offers a smaller overall revenue opportunity, the company?s leadership and larger margins than seen in recreational cannabis make this a strong choice.
All in all, Aurora Cannabis seems to have made the right moves at the right times to date and continues to do just that. As such, if you?re interested in the cannabis sector, this is one to watch.
Ich glaube wir sollten uns lieber mal selber einen durchziehen. Ab jetzt wird es wieder Psychologisch meine Herren! Viele bekommen wieder Schweißperlen auf der Stirn und hängen am Verkaufsbutton. Es gibt keine schlechten News. Der ganze Markt ist seit einem halben Jahr, abgesehen von ein paar Peaks, auf dem Rückzug. Am Montag erhellt es sich wieder ein wenig, bevor wir weitere Tiefs sehen werden. Dann werden wir wieder genötigt den EK irgendwie zu drücken....
Das Papier kostet Nerven.....selber zuzuschreiben!!!
Quote: In addition to the two new outdoor production sites, Aurora confirms it has now received the Health Canada processing license for its Aurora Air facility located near the Edmonton International Airport and Aurora Sky. Aurora Air will be home to several of the new production lines for edible products such as gummies and chocolates, to be introduced to the Canadian consumer market in December 2019