you would have saved a fortune or made a fortune by merely following our advice.
Not just as an investor in hemp or cannabis stocks, but any person interested in the sectors or is looking to participate as a business partner or owner. The sectors are ravaged with disinformation that reliable truths are impossible to distinguish.
What has given us credibility is our algorithms. We have committed most of our resources on data gathering, computer processing and designing workable models to solve specific issues. Originally, the mission was to understand hemp and marijuana as commodities and design methods to profit from intelligence. During the primitive stages of the learning process, we uncovered numerous anomalies that defied sound business practices and commonsense. Therefore, it was prudent to expand the data fields to isolate mistakes in judgment and to determine the likely scenario to solve the problems. We discovered that no individual or organization had a conscientious business model and merely operated on the pretense that "The [cannabis] industry has massive growth potential and the learning curve with solving the mistakes currently encountered." The 2015 quote is attributed to Warren Buffett on the business practices of cannabis.
History has proved Mr. Buffett to be wrong. His so-called "learning curve" was too steep to be recognizable and in the process billions of dollars were lost and continued to be lost. If Mr. Buffett followed our synopsis and used our algorithms he would have discarded his "learning curve" idea.
We are right in our assessments because history as proven us right. Our positions papers and the articles presented just on this website proved our credibility.
Our article on November 16, 2018 - BIG SPIN - Aurora Cannabis Fools Investors --- https://www.fjcannabis.com/single-post/2018/11/16/BIG-SPIN----Aurora-Cannabis-Fools-Investors --- proves our point.
When first aired, it was challenged with over 900 email followers and the other kind, which does not included telephones inquires. At the time ACB was selling at $7.21. Today, ACB is selling at $1.44.
Here's what we said:
BOTTOM LINE: : As stated in previous articles, Aurora Cannabis’ business model is flawed. ACB has a significant cash drain and more acquisitions to hide its mistakes exacerbate the negative trend. Bullish shit talks, money walks --- don't play the fool's game..
note: We do not have a vested interest or desire to claim to be a "stock expert." Our awareness in Aurora Cannabis is not as an investor or trader, but to understand the dynamics of the cannabis industry and what high-profile public companies are doing to address the complicated environment. Why make a mistake more than once? Learning from the other guy is our formula for success. This strategy doesn’t generally work for all circumstances. Because the cannabis industry is operating under abnormal business rules, we believe the path to long-term investor profitability and our future depends on knowledge - not ours but the other guy’s. Oscar Wilde said, “Experience is simply the name we give our mistakes.” Why should we pay for mistakes when others are willing? Our mantra: Managing a company in the cannabis industry is like the art of drawing without an eraser. Careful is what careful does.
NOW FOR TODAY'S AURORA CANNABIS NEWS:
Aurora Cannabis (ACB) reported lower fiscal second-quarter revenue and deepening losses, a week after announcing its CEO's departure, layoffs, and steep write-downs. Aurora Cannabis stock and other marijuana stocks fell.
Aurora Cannabis Earnings
The company last week forecast net cannabis sales of between 50 million to 54 million Canadian dollars. That was below some estimates. On Wednesday, the company reported net cannabis sales of 52.7 million Canadian dollars, down 26% from fiscal Q1, and total net revenue of 56 million. Production fell 26% from Q1 to 30,691 kilograms, and sales volume declined 24% to 9,501 kg. The production decline was due to changes to cultivation strategies, including a pivot to high-value, high-potency strains which are lower yielding. Aurora sees quarterly harvest volumes leading to average production of 150,000 kg annually or more. The average net selling price of consumer cannabis dropped 10% to 4.76 Canadian dollars. The adjusted EBITDA loss widened to 80.2 million Canadian dollars from 39.7 million in Q1. Management warned there is likely to be a slower than previously expected rate of industry growth in the near-term and predicted Q3 will see modest to no growth vs. Q2's adjusted revenue of 65 million.
Aurora Cannabis Stock, Marijuana Stocks
Aurora Cannabis stock dipped 0.7% to 1.45 in premarket trading on the stock market today. The stock continues to dig for the bottom, and is at record lows, at least for its time on the New York Stock Exchange. As with other marijuana stocks, Aurora's IBD ratings are abysmal. The stock's Composite Rating is 8. Its EPS Rating, a scorecard of a company's ability to accelerate profits, is 5, largely because the company's losses and cash problems have clouded its path to profitability.
CEO Departure, Layoffs, Write-Downs
Last week, Aurora said that CEO Terry Booth would step down and be temporarily replaced by Michael Singer, the company's executive chair. Booth will stay on the board and serve as a strategic adviser.
By way of an agreement Booth struck with Aurora in 2018, in the "event of a termination without cause or a resignation for good reason," Booth would get two years' worth of severance of his salary and cash bonus, according to a filing in September. During a conference call in connection with that announcement, Aurora said it had engaged a global search firm several weeks ago to find a new CEO. That agreement also stipulated that "any and all unvested equity options granted" to Booth would vest immediately. Aurora's board in September approved a bump in his salary, to $525,000.
Aurora last week also cut 500 jobs from its payroll. The pot company also said it expected impairment charges or write-downs related to licenses in Latin America and a Denmark facility of up to 1 billion Canadian dollars total. Aurora's credit facility also suffered a huge cut in its size. Aurora stock tumbled on the news.
During the conference call, the company warned of a "very low growth scenario" for the quarters ahead and said it would need to be "more financially disciplined than ever before." Different analyses have found that Aurora has only a few months' worth of cash left.
The write-downs could become a pattern for legal cannabis industry, which in recent years rushed to acquire other companies. But as the industry wobbles, the assumed worth of those companies might have to be revisited.
Our algorithms predicted this events, and today news story repeats that fact.
Cash Worries Loom Over Marijuana Stocks: After raising or borrowing money, building production facilities and expanding into nascent markets abroad, investors this year are more worried about marijuana stocks running out of cash. The cannabis industry, granted, is still young. But sales haven't grown fast enough to counterbalance losses. Layoffs have become more common. Executives who showed up to interviews with swagger and visionary talk have started to give way to a lower-profile set.
Within Canada, executives have complained that the provinces haven't allowed enough pot shops to operate. The lack of stores, they argue, has hindered access and smothering sales growth. Some provinces have hesitated to immediately allow sales of vaping devices after a rash of illnesses in the U.S. raised safety concerns.
"A success monetary future depends on what algorithms you use." Christopher Netelkos.