Aurora Cannabis shares slid about 6% Thursday, after a report that the company is about to announce plans to lay off 10% of its workforce, becoming the latest company in the sector to move to cut costs. Aurora (ACB) , (CA:ACB) the most widely held stock of Canada’s licensed cannabis producers, did not immediately respond to a request for comment on the report from BNN Bloomberg that cited a person directly familiar with the matter. “Both companies have a relatively clouded path to profitability right now, very large operational footprints, a history of aggressive investments, and will likely need to raise capital in the near future (in our view),” analysts Owen Bennett and Ryan Tomkins wrote in a note to clients.
I guess the high wore off, now they’ll be breaking into your car for their next fix.
It’s not surprising that an over-hyped start-up full of corporate hubris has discovered that a heavily regulated large company can’t compete with a totally unregulated, established, and successful (yet illicit) industry. The bubble has popped. Taxing and regulating is not the same thing as legalizing.
Right on John.
That’s the problem with growing up as a trust fund brat.
No sense of the real world.
Any street person could have told them if you set the price at $10, the dealers will sell for $9.
If the govt sets it at $8, the street will sell for $6.
What a total bunch of fools these Trudeau Liberals are!
I can’t wait to leave this disgusting, ignorant Ottawa govt.
So how bad are things at Aurora Cannabis? Just take a look at their balance sheet.
https://www.newcannabisventures.com/aurora-cannabis-company-financials/
For one thing their losses from operations ($77 million for Q3 ’19) almost equals their revenue from the sale of goods ($85 million).
And the killer is most of the value in the company (shareholder equity – total assets) is “Goodwill” which is French for “let us pray”. Of the $5.6 billion in total assets, $3.2 billion is Goodwill (a term accounts use to match shareholder equity with assets). Almost 60% of this company has no tangible assets.
The value of the stock is about 10 times revenue. No wonder the CEO retired.
They have a production license
Government “control” has screwed up more things than have ever been created.
Excellent. Better yet would be for Canada to wake up and quit Gin Lane. T’aint likely, but one must hope.
I keep looking at the data posted by the govt and wonder how this industry has not collapsed already….
https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/research-data/market/dried.html#tbl-2
Production keeps increasing outpacing sales while inventory grows.
Nothing more taxes and government supports won’t cure
Inventory grows simply because the retail cost to buy is a Colossal JOKE. and therefore the big push to buy legally never did materialize. What did these Non Capitalist Morons think was gonna happen..? That Every street dealer was simply gonna pack up n leave..? LMAO.
Some MATH.
If I want, I can easily pick up an OZ of good quality hybrid pot (Indica-Sativa) for as low as $160. CAD…on the “street”
In any store front operation whose operators must purchase from licensed producers, your typical decent Hybrid as above runs ~$53.00 for 1/8th of an OZ. (thats = $ 425.00/OZ)
Legalization was 100% about VOTES and SFA else. Except for allowing a few Liberal Insiders to get filthy rich as per always…(See Wind Farms in Ont for perfect Example).
End of Stupid Story.
This is what happens when government dictates prices of a commodity, while blithely ignoring, or unable to control the black market availability of said product. No surprise at all.
Now, imagine this was the liquor industry, and there were private stills everywhere, severely cutting into gubmint revenue…..safe to say that we would see the military busting up illegal stills on a regular basis.
This is a government with no backbone, no idea how an industry or business runs, and no intention of enforcing law and order.
The Trudeau Clown Show
By design,the backroom boys all made out like bandits,the dumbies got rolled again.
I am surprised it took so long.
is this related to the fact my dealer is delighted to have gubbamint competition with prices DOUBLE and TRIPLE his?
and how many cops [are tops!’] and politiSHUNS own stock?
There is nothing in the universe, so well run, that a Liberal won’t screw it up.
Crony capitalist companies trying to make money in a market rigged by the government, unable to compete with the free market,
My crew just did a bit of work for a client at Aurora greenhouse at the airport in Edmonton. I only hope Aurora’s cheque clears. I am sure I will get paid since I am not dealing with Aurora directly.