Aurora Cannabis (NYSE:ACB) is among the hottest hashish shares within the inventory market. But it shouldn’t be, in accordance to GLJ Research analyst Gordon Johnson.
Johnson believes the Canadian marijuana producer’s share value will finally plunge to $0. Essentially, he thinks Aurora will go bust and shareholders will lose the entire cash they invested in its inventory.
In flip, Johnson recommends that buyers promote their Aurora Cannabis shares now. He even goes so far as to advocate utilizing the inventory’s current rally following the U.S. elections earlier this month to provoke a brief place. Short promoting is a approach to doubtlessly revenue when a inventory declines in worth.
Johnson is essential of Aurora’s operational technique, which has seen administration alternate between a give attention to premium hashish blends and value-priced merchandise. Neither technique has confirmed profitable. Through all of it, Aurora has posted large losses. It generated a $2.5 billion internet loss in fiscal 2020 alone, after writing down a bunch of misguided investments.
With Aurora persevering with to burn by alarming quantities of…