Subjective Probability + Game Theory Model (SP+GTM) posted a - 82 score last Thursday, the lows algorithm value in two years, and reconfirmed the score today. Not only for cannabis stocks but the general market as well. If long stocks SELL and remain defensive.
Since our main emphases is cannabis, here's the noise:
Aurora Cannabis: Cowen downgrades ACB; now cautious on Canadian cannabis names, prefers U.S. peers.
ACB has been SP+GTM's favorite short for two years ($15.24 to $12.40). Now $1.67.
Analyst Vivien Azer downgraded ACB to Market Perform from Outperform stating, "While we think interim-CEO Michael Singer is better equipped than some given his strong finance background, ACB's sheer size makes this a big ship to right, given the near-term financial commitments that were made to accommodate new financing. As well, with the updated guidance already reflecting the company's exhausting its ATM, we don't see much more dry powder available to the company."
Cowen also downgraded Sundial Growers (SNDL) and Tilray (TLRY) this morning. ACB sits 6% lower this morning, while TLRY is slated to open down 8.5%
ACB, SNDL and TLRY have extensive repording in our pages about their ineffective Business Models, poor management execution and acquisition of overpriced assets. History is great when you have it right and profit by it.
If you are not reading our pages you are definitely losing money.
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