- Aurora closed another equity raise, boosting its cash balance to over $600M, enough to fund its near-term cash burns.
- The company is unlikely to generate positive cash flows because its revenue has been flat and SG&A remains too high.
- For a stock with negative cash flows, no revenue growth, and dilution risks, the best strategy is to wait and see.
- Should the company find ways to boost growth, the upside could be larger than other cannabis stocks; ACB is also a potent tool for speculating on cannabis legalization news given its high volatility.
For further details see:
Aurora Cannabis: Extreme Downside Case Averted