Commodities and Gold

Cannabis Corner: Aurora Turns It Around

Today gave “Big Cannabis” a much-needed ray of light. Aurora Cannabis Corp. (NYSE:ACB) is still growing its business through the global pandemic.

Most of the people on Wall Street thought that Aurora’s sales had stalled at $65 million a quarter, roughly where they were last year. That’s simply not what it takes to turn this into a sustainable business.

I cheered to see that the company managed to bring in an extra $10 million. This is enough to move the top line 15%. And from the way the stock caught fire today, I wasn’t alone in cheering.

These companies are still hugely depressed. Their business models are under pressure. But today, Aurora proved that it can become a winner even under extremely negative conditions.

And the competitive field keeps contracting, which will help provide a little relief. Hexo Corp. (NYSE:HEXO) is now under the shadow of being delisted.

It is a game of survival now. Every cannabis stock that falters makes space for the rest. Ultimately, those that end up remaining in the market will have the scale and the freedom to really make money.

The finish line may not be in sight yet, but earnings reports like this one take us closer.

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Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. The Financial Times describes Ms. Kramer as “A one-woman financial investment powerhouse” and The Economist distinguishes her as “one of the best-known investors in America”. Ms. Kramer is often quoted in publications such as the Wall Street Journal, New York Post, Bloomberg, and Reuters. She is a frequent guest commentator on CNBC, CBS, Fox News and Bloomberg, providing investment insight and economic analysis. Ms. Kramer was an analyst and investment banker at Morgan Stanley and Lehman Brothers. Ms. Kramer founded and ran a long-short hedge fund and has been chief investment officer overseeing debt and equity portfolios. Since 2010, Ms. Kramer’s financial publications have provided stock analysis and investment advice to her subscribers. Her products include GameChangers, Value Authority, High Octane Trader, Triple-Digit Trader, 2-Day Trader, IPO Edge and Inner Circle. Ms. Kramer, a Certified Fraud Examiner, has also testified as an expert in investment suitability, risk management, compliance, executive compensation, and corporate governance. Ms. Kramer received her MBA from the Wharton School at the University of Pennsylvania and her BA with honors from Wellesley College. Ms. Kramer has provided testimony regarding investment policy to the U.S. Senate and is a frequent speaker on the markets, portfolio management and securities fraud and compliance. Ms. Kramer is also the author of “Ahead of the Curve” (Simon & Schuster 2007) and “The Little Book of Big Profits from Small Stocks” (Wiley 2012).