Commodities and Gold

CANNABIS CORNER: AURORA MAKES ITS MOVE

Aurora Cannabis Corp. (NYSE:ACB) is poised to benefit from the looming cannabis industry consolidation and we now have data to show that the prediction I previously made is coming true.

ACB just issued $40 million in stock to buy its way into the U.S. cannabidiol (CBD) market. The acquisition in question, a company called Reliva, is small but growing fast.

While $10 million a year in revenue is only a drop in the ocean for established corporate giants, it makes a big difference for ACB, which still earns cheers for bringing in $75 million a quarter.

Bolting on an extra 6% growth on the top line for the coming year is a good thing. Furthermore, Reliva is already profitable at this scale, so any expansion translates right to the bottom line.

That’s practically a miracle in an industry that’s still struggling to grow its way to profitability. The cannabis clouds are clearing as small players get taken out. Better days are on the horizon.

SAVE THE DATE: Join me and some of the smartest traders and investors in the world in this free online event, The Mad Hedge Traders and Investors Summit, on June 4. Click here now to register and learn all the details.

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 JournalNew 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).

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